CMHC Says that House Prices will Continue to Rise in the Near Future. Employment, Immigration, and Low Mortgage Rates are Positive.

The Canada Mortgage and Housing Corporation says that house prices will continue to rise in the near future. The average price will probably level out in 2011 to an average of $367,500 and then rise to $372,400 in 2012. Factors such as employment, immigration, and low mortgage rates remain supportive for the housing sector as a whole.

CMHC also predicts relatively flat mortgage rates through 2011, and that they will moderately increase in 2012. Good news for mortgage borrowers over the next twelve months. Overall, housing starts are also expected to be strong, with 183,900 new builds predicted for the second quarter of 2012.

For anyone thinking of investing in real estate over the near-term, CMHC brings welcome news.

Happy Investing : )

Ottawa Housing Boom. Real Estate Investors and Home Owners in Ottawa are Experiencing Fast Rising Prices.

Ottawa is experiencing a housing boom and real estate investors have been making easy money in the condo market. First-time buyers are leading the way in purchases. 

"The Canada Mortgage and Housing Corporation says housing starts across the country are lagging but Ottawa boasts stronger employment numbers for people in their 20s. These are the people now looking to buy."

Numbers recently announced by the Canada Mortgage and Housing Corporation (CMHC) reveal that sales of town homes and condos are near record levels. In the last year, hosing starts have risen by more than forty percent, and there does not seem to be any sign of imminent decline. 

Ottawa has great earnings projections, increasing housing demand, and a stable employment market, all great trends for real estate investors and home owners. Especially good for developers will be the new light rail lines that should be completed in the near future. Real estate along the lines will be sought after by many of those who want to be close to the downtown core.

Drop me a line if you have any real estate or financial questions, 

Happy Investing : )

Interest Rates to Remain Low. Cheap Loans Will Continue for the Near-Term. More Variable Rates and Inflation the Result.

Yesterday's news from the federal reserve that interest rates will remain low for two years provided a sigh of relief for investors and those looking to buy homes over the next little while. 


According to the Globe and Mail:


"High unemployment, tapped-out consumers and a depressed housing market led the Federal Reserve to say Tuesday that the outlook for recovery in the world’s largest economy is now so tepid that short-term interest rates will probably remain at emergency, near-zero levels until mid-2013."


The Federal Reserve initially lowered rates to the 0 - 0.25% level following the financial crisis in 2008, but the elusive recovery has caused rates to remain largely unchanged since that time. With two more years added to the low rate environment, the markets now have some degree of certainty regarding the Fed's decisions going forward, and an assurance that cheap money will be plentiful for investors and home buyers in the near-term.


What's the move for those thinking of buying real-estate any time soon? In the current interest rate environment, consider variable rates to save you some cash as any raise in rates going forward is becoming unlikely. And for investors? Be very wary of holding cash as inflation is sure to eat away at your savings quickly. 


For more from the Globe and Mail:


http://www.theglobeandmail.com/report-on-business/economy/interest-rates/fed-promises-two-years-of-low-rates/article2124029/


Happy Investing and contact me if you have any home buying or financial questions.

Average Sale Prices for Homes in June: Vancouver, Toronto, Victoria, and Calgary all well over $400,000.

Average Sale Prices for Homes in June: Vancouver, Toronto, Victoria, and Calgary all well over $400,000.

City	June 2011	June 2010
Halifax	$ 269,605	$ 262,992
Saint John	$ 168,830	$ 175,123
Quebec	$ 245,008	$ 236,463
Montreal	$ 323,785	$ 307,512
Ottawa	$ 354,524	$ 328,238
Toronto	$ 476,386	$ 435,064
Hamilton/Burlington	$ 339,189	$ 314,189
Winnipeg	$ 243,977	$ 233,567
Saskatoon	$ 310,643	$ 295,963
Regina	$ 285,613	$ 274,673
Calgary	$ 415,431	$ 412,016
Edmonton	$ 328,695	$ 335,271
Vancouver	$ 808,867	$ 657,934
Victoria	$ 507,385	$ 511,498

Canadian Real Estate Attracting More Chinese Investors. Real Estate Agents and Developers Target Mainland China.

Condo developments in Vancouver are selling out in mere hours as thousands of Chinese immigrants and investors are using them to make and store their money. Smart local real estate agents and developers are targeting people in mainland China in the hopes of attracting some of their capital as many Chinese citizens are becoming enamoured with the concept of real estate development and ownership. By including Chinese-specific media and targeting their marketing at mainland consumers, western-Canadian condominium developers are making a fortune. 

According to Landcor Data Corporation, an astounding 74 percent of buyers for recent luxury developments in Richmond and Vancouver were from Mainland China. Many of the investors do not even rent out or live in their units, preferring simply to leave them vacant as a store of value in a country and region that they see as safe, reliable, and politically stable. 

Toronto also is attracting significant foreign investment in real estate. A recent Etobicoke development called Westlake was largely snapped up by Mainland Chinese investors. To attract more investment, a number of realtors are opening offices in Beijing and Hong Kong to be closer to their target markets. 

For more information on this topic, check out the Globe and Mail.

Happy Investing : )