“Higher multiple starts were nearly offset by a decline in single starts and rural area starts in April. As a result, total housing starts edged higher in April,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre.

The seasonally adjusted annual rate of urban starts increased by 5.1 per cent to 182,500 units in April. Urban multiple starts increased by 27.2 per cent to 98,600 units, while single urban starts decreased by 12.7 per cent to 83,900 units.

April’s seasonally adjusted annual rate of urban starts increased 16.4 per cent in British Columbia, 6.7 per cent in the Prairie region, 4.5 per cent in Ontario, and 1.1 per cent in Quebec. Urban starts decreased 3.3 per cent in Atlantic Canada.

Rural starts were estimated at a seasonally adjusted annual rate of 19,200 units in April.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

Housing Starts

Following a total of 149,081 units in 2009, housing starts are expected to be in the range of 166,900 to 199,600 units in 2010, with a point forecast of 182,000 units. In 2011, housing starts will be in the range of 148,600 to 208,800 units, with a point forecast of 179,600 units.

“Canadian housing markets have recovered from the low levels posted in early 2009,” said Bob Dugan, Chief Economist for CMHC. “Moving forward, housing starts will moderate as activity becomes more in-line with long term demographic fundamentals. New measures for government-backed mortgage insurance introduced by the Government of Canada that took effect on April 19, 2010 will continue to support the long-term stability of Canada’s housing market.”

Mr. Dugan also noted that the existing home market will move towards balanced conditions over the next two years as MLS®1 sales ease and inventory levels increase. In late 2009 and early 2010, sales activity included some pent-up demand from early 2009. Once this demand is exhausted, and as mortgage rates gradually rise, the pace of activity in the resale market will ease. As a result, existing home sales will be in the range of 484,000 to 513,300 units in 2010, with a point forecast of 497,300 units, and then move slightly lower in 2011 to be in the range of 443,500 to 504,900 units, with a point forecast of 473,500 units.

With an improved balance between demand and supply, the average MLS® price is expected to stabilize through the end of 2010 and then rise modestly in 2011.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

* The forecasts included in the Housing Market Outlook are based on information available as of April 23, 2010. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

“An increase in residential housing starts combined with rising MLS® sales is expected in New Brunswick in 2010 after seeing reduced activity in both the new home and resale market in most provincial urban centres last year,” said Claude Gautreau, CMHC’s senior market analyst for New Brunswick. Housing activity during the first quarter of 2010 has yielded positive results as economic fundamentals in the province remained strong, highlighted by historically high employment levels. These conditions are expected to persist over the forecast period.

In New Brunswick’s three large urban areas – Saint John, Moncton and Fredericton – residential starts are expected to outpace last year’s totals. However, the anticipated increase in housing starts in 2010 and 2011 will be moderate. The existing home market is expected to follow the same general trend with steady price growth in both 2010 and 2011, combined with a moderate increase in sales.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a
variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

YouTube video New Brunswick

There has been fervent discussion about the impact of US recession on Mexico Real Estate and its future prospects. When talking about Mexican Property market, it may seem that it is closely related to the US real estate. Some may very well paint a gloomy picture for Mexico Real Estate market. But an in depth study of Mexico Real Estate will reveal a bright future for Mexican Real Estate in the coming year.

The real estate in Mexico has witnessed steady appreciation in the last 5 years. Both, homes and condos in Mexico, new and resale have contributed to this growth. The real estate market in Mexico is usually popular with American citizens who look for a second home or vacation home in Mexico. The reasons for this popularity have been its close proximity to USA, low cost of living, better value for money and a warm sunny climate. Recent years have seen thousands of American expatriates buying retirement homes in Mexico. Moreover, infrastructure in Mexico has improved to international standards. This has made Mexico a much sought after destination.

You may very well ask why Mexican Real Estate industry won’t suffer as a consequence of the recent fall of US economy.

Destination like Cancun, Playa del Carmen, Puerto Vallarta , Baja California region are very popular with real estate investors in Mexico. These areas are continually seeing new and grand real estate projects conceived and completed to meet the demands of the buyers eager to buy real estate in Mexico. With the introduction of Mortgage financing for foreign real estate investors in Mexico, the increase of foreign investment has strengthened the growth of real estate market in Mexico. Since, the lending process and criterion for foreign real estate investors has been simplified, it has served in increasing enthusiasm for Mexico real estate.

Mexico real estate market is much more stable than US real estate market. The residential mortgage backed securities, popular in the US property market, are not common in Mexico, so have a much less effect of the sub prime crisis afflicting US economy.

Another factor is that the buying market who are looking for the second vacation home is not really experiencing too much of the current recessionary effects in America.

One very interesting development seen in Mexican real estate market is the increase in real estate investors from Canada. Canada has experienced a very strong dollar in recent times. Strong economy and increased property markets, especially in the main areas of Toronto and Vancouver , have led to a large number of Canadian home owners able to spend money on a second or Vacation Homes in Mexico.

Mexican real estate market seems to be a promising and steady destination for investors throughout the coming years. Recessionary influences of the US have not shown any medium to long term negative impact so far on Mexico Property Market. Foreign investors from Canada and Europe are flocking to Mexico compensating for any dwindling of investment from USA. So go ahead and buy your dream vacation home in Mexico and secure your investment for the future.

Author: Insight Advisors

http://pcmexico.org/right-time-to-invest-in-mexico-real-estate/

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

More than half a million Canadians have fallen behind on their various credit payments, fuelling a 19 per cent rise in the average national delinquency rate in the one-year period ending May 31, 2009, says a new report from Equifax Canada.

The credit bureau called the double-digit jump “alarming,” noting the average delinquency rate for Canada hit 1.52 per cent at the end of May.

Much of the trouble stemmed from missed payments on credit card bills and for sales finance purchases of items such as furniture and electronics.

Equifax defines delinquent bills as those that are at least 90 days overdue.

Nadim Abdo, an Equifax vice-president, stressed the “sharpest increase” in delinquencies resulted from credit card and sales finance purchases, which have risen by 38 per cent and 58 per cent, respectively, since May 2008.

Rising delinquencies in those areas are troubling because consumers tend to miss payments on those unsecured credit products before they fail to pay back collateral-backed loans such as mortgages, bank loans and lines of credit, Abdo said.

US Credit Card Delinquency Rate Jumps 11 Percent

Inquiring minds might be asking for a comparison between Canada and the US. For the answer, please consider 1Q credit card delinquency rate jumps 11 percent.

Credit card holders who in ordinary years might have used their tax refunds to pay down their balances apparently spent the money elsewhere as the recession deepened in the first quarter.

That’s one of the conclusions that may be drawn from data showing the delinquency rate for bank-issued credit cards rose 11 percent in the first three months of the year, according to credit reporting agency TransUnion.

The delinquency rate jumped to 1.32 percent this year, from 1.19 percent in the first three months of 2008, TransUnion said. The statistic measures the percentage of card holders who are three months or more past due on their payments for cards bearing MasterCard and Visa logos, along with American Express and Discover cards.

The average total debt on bank cards also rose, jumping to $5,776 from $5,548 last year.

TransUnion measures credit card delinquencies at 90 days, but tracks mortgage delinquencies at 60 days. Becker said that is because card payments are typically much smaller than mortgage payments, and it’s easier to catch up on past due cards. For people in financial distress, it’s much harder to produce two mortgage payments once they fall behind, he explained.

Not surprisingly, bank card delinquency rates remained the highest in the states hardest hit by the mortgage meltdown: Nevada, Florida, Arizona and California.

North and South Dakota and Alaska, the states with the lowest rate of mortgage delinquencies, are also the states with the lowest credit card delinquencies, TransUnion data showed.

TransUnion, which samples 27 million consumer records to produce its data, expects the rate of credit card delinquencies to rise for the rest of the year, ultimately reaching about 1.7 percent.

Note that the US rate was a comparison of March 2009 to March 2008 while the rate for Canada was a comparison of May 2009 to May 2008. Thus Canada and the US are following a similar path.

Dynamic Maps

The Federal Reserve Bank of New York has Dynamic Maps of Bank Card and Mortgage Delinquencies in the United States that some may wish to consider.

In regards to mortgages, Canada has some “catching down” to do, and it will. All the bubble areas such as Vancouver, Calgary, Toronto, etc are going to get hit hard.

Mike “Mish” Shedlock

http://globaleconomicanalysis.blogspot.com

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Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

http://offshoreinn.com/investing/500000-canadians-90-days-behind-on-credit-payments-delinquency-rate-hits-152-us-delinquency-rate-is-132/

reviewed by Moishe Alexander, CFC CEO

Insurance Coverages You Need:

If you haven’t updated your insurance coverage in some time, your Hamill, North Dakota Mobile Home Parts may be vastly underinsured. For example, if your home is worth $150,000 on the real estate market, how Sterling, Nebraska Log Home Floor Plans insurance should you carry? $150,000? $75,000? $300,000? While your mortgage broker may require a specific amount of insurance (usually the value of the mortgage), the real answer depends on how much it would cost to rebuild the home. If it will cost $200,000 to rebuild your home, then you will need at least that much coverage; otherwise, you’ll come up short.

In general, you will need enough insurance to cover: Powder River, Wyoming Skyline Double Wide your home, replacing your personal property, paying for temporary living expenses during repairs, and covering your liability to others.

When it comes to covering your rebuilding your home, multiply the square footage of your home by local “per square foot” construction costs. Contact the local building association, a realtor, or your insurance agent to obtain the local construction cost figure.

Insuring your possessions is trickier than simply saying, “I’ll take $50,000 in coverage.” First, go room through room and document your belongings. Include dollar figures of how much it would cost to replace each item. Make sure that your policy uses “replacement cost” rather than “actual cash value.” In addition, be aware of the limitations of your policy. For example, fine jewelry, fur, silverware, artwork, coin collections, electronics, cash, and guns (as well as other items) often have maximum limits. If you have valuables exceeding these limits, you will need to obtain an endorsement or rider.

Buy enough liability to cover your assets. For example, if you have $1 million in savings and other assets, yet only have $300,000 in liability insurance and are involved in a liability lawsuit, the plaintiff may pursue your additional assets above and beyond your liability limits.

If you live in an area where the risk of floods or earthquakes is of concern, you may want to consider optional flood or earthquake insurance as these perils are excluded from typical insurance policies. In addition, if you have a swimming pool or a dog, you might need additional coverage addressing these increased risks.

Insurance Coverages You Don’t Need:

Reviewing your policy each year helps ensure that you aren’t paying for coverages you do not need. For example, if you had purchased a rider adding coverage because you owned a pit bull and the dog has since died, you can drop coverage. Likewise, if you’ve sold your jewelry or art collection, why continue to insure it with an expensive rider? Look at your coverages, endorsements, riders, and limits with an eye for whether that coverage is still necessary. In addition, look at the dollar figures. A few years ago, it may have made sense to pay an extra $100 per year to add a rider protecting your computer from household mishaps, but now that you can buy a comparable computer for a few hundred dollars as opposed to thousands, the coverage may no longer be worth the price.

Finally, while examining your insurance policy, schedule a consultation with your insurance company or agent and ask how you can reduce your costs while maintaining adequate coverage. For example, by installing deadbolt locks or a security system, you may reap a large discount.

By: Mr. Mark Decherd

http://modular-housing28418.blogspot.com/2009/07/insurance-coverage-what-you-need-and.html

brought by Moishe Alexander, CFC CEO

Among other things, it compared Canadian and American mortgages and listed several key differences.  Here are the big ones:

• US mortgages typically don’t have pre-payment penalties.  Canadian mortgages usually do (except for “opens,” which are more expensive).
• Canadian mortgages are portable. Portability is rare in the US.
• US mortgages often have higher origination costs (thanks to “points” and fees) than Canadian mortgages.  According to the study, Americans pay $3000-$5000 on a typical purchase, while Canadians pay about $1800.
• Rate holds are usually free in Canada. American lenders commonly charge for them.
• Mortgage insurance in Canada covers the entire loan amount. In the US, it usually only covers losses above a LTV ceiling (above 80% for example).
• In Canada borrowers must pay the entire insurance premium up front. In the US, borrowers pay it monthly and can cancel it when LTV falls below the required threshold (e.g.,  80%).
• In foreclosure, Canadian lenders have recourse in a borrower’s non-home assets. In the US, that’s usually out of the question due to legalities or costs.
• Most US mortgages require payments to be made at the beginning of every month. In Canada, we have weekly, bi-weekly, semi-monthly, and monthly payment options.

Some other notable statistics and conclusions:

• Deposit-taking institutions held 62% of Canadian mortgage debt at the start of 2009.
• Just 29% of Canadian mortgages are securitized, versus 60% in the US.
• 45% of Canadian chartered bank mortgages are insured.
• Home ownership in the US and Canada are both about 68%, despite US homeowners receiving a mortgage interest tax deduction.
• Canada has fewer options than the US when it comes to mortgage terms over 5 years. The author says that’s due to a five-year maturity cap on government-guaranteed deposit insurance, and the Interest Act’s prepayment penalty limit.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/06/boring-but-effective.html

reviewed by Moishe Alexander, CFC CEO

Mortgage fraud and the victims of fraud in real estate purchase

Mortgage fraud is defined as the material misstatement, misrepresentation or omission that is relied upon by an underwriter or lender for funding, purchasing or insuring a mortgage loan. The misstatement, misrepresentation or omission refers to the lies as also the white lies. In case a lender makes an advancement of mortgage money while telling any small lie regarding the borrower’s income, property value, intended use of property etc. then a mortgage fraud is said to have occurred.

Common victims of fraud are those who have purchased real estate whose values have been over inflated by a series of fraudulent transactions. In this way several consumers have had incurred huge financial losses and their credit ratings have been damaged.

Dealing with real estate related fraud in Alberta

This is a crime and you need be informed and armed beforehand to effectively combat the damaging influence of mortgage fraud. You need to beware when approached for opting for any scheme set to help make quick and easy money in real estate. Caution needs to be observed when your name is being taken down for credit purposes or when you are being asked to create or alter certain documents in a real estate or mortgage transaction. If you are suspecting that you can get involved in a fraudulent transaction then you ought to immediately report such suspicions to the Real Estate Council of Alberta (RECA) for them to take suitable action.

In an effort to reduce mortgage fraud relating to the real estate market of Alberta, Canada the RECA has taken up several initiatives-

- Efforts have been made to bring about a change in the industry by introducing mandatory mortgage fraud awareness course, improved investigative resources and processes, stronger sanctions against licensees involved in mortgage fraud and development of ongoing education processes incorporating mortgage fraud identification knowledge.

- There have been collaboration endeavors with other stakeholders and enactment of legislative changes and information sharing efforts extended.

- There has been made efforts to increase public awareness.
These will hopefully work towards curbing mortgage frauds to a desirable extent and make the investment in real estate in Alberta less risky…

http://www.socialjury.com/632/dealing-with-fraud-in-real-estate-purchase-in-alberta-2/

Review made by Moishe Alexander, CFC CEO

The Canada Mortgage and Housing Corporation’s Excellence in Education Award honours secondary and post-secondary educators in Ontario who have encouraged students in the development of sustainable communities by integrating sustainable concepts in housing an community development into their curriculum.

Go to the CMHC website for more information and past winner profiles: http://www.cmhc.ca/en/inpr/su/su_002.cfm

The call for nominations is open now until May 31, 2009.

Categories include: Innovative Teaching, Pollution Prevention/Reduction, Sustainable Planning/Practices/Projects, Environmental Management, Resource Conservation, Technology and Innovation, Environmental Design, and Waste Management.