Canada’s Banking System Healthiest in the World … June 24, 2010
Posted by Mary Pougnet in Finance, Housing, Real Estate in Canada.add a comment
Canada’s banking system is a model for the United States and European countries struggling to cope with mountains of debt accumulated through a series of market crises, massive bailouts and recession according to a report in the Washington Post this morning. The International Monetary Fund and World Economic Forum (IMF) is showcasing Canada for having the healthiest banking system in the world. . The IMF, in probing what made Canada’s mortgage lending system so resilient during the crisis, concluded that it was “boring” compared with the complicated, sophisticated and expensive financing system in the U.S., but nevertheless effective and safe.
Canada and its banks were barely touched by the 2008 financial crisis that nearly brought down the U.S. banking system and led to the biggest recession since the Great Depression. Canadian bank losses were so low, and their cushion of reserves so high, that the banks managed to post profits for months in the aftermath of the 2008 crisis while major U.S. banks were teetering on the brink of insolvency and getting $250 billion in Treasury bailouts to cover burgeoning losses on bad mortgage loans.
“The Canadian experience showed that more prudent lending and borrowing played a big part in preventing the housing bubble that proved the near-undoing of the American banking sector,” said Robert Elliott, a Canadian banking lawyer at Fasken Martineau.
Though major U.S. banks have been recapitalized by the government and are posting profits again, “all the fresh capital in the world may not prevent another cycle of misery down the road” unless the U.S. also adopts more prudent lending practices, he said
OMG an earthquake hit Ottawa this aftern June 23, 2010
Posted by Mary Pougnet in Uncategorized.add a comment
OMG an earthquake hit Ottawa this afternoon! My daughter Jen and son-in-law Rodger are fine, thank you Lord! Thank you!
Ontario’s Rental Costs Rising Faster Than Incomes June 17, 2010
Posted by Mary Pougnet in Finance, Housing, Mortgages.2 comments
Ontario’s rental costs are rising faster than tenant incomes, according to the Ontario Non-Profit Housing Association (ONPHA) and the Co-operative Housing Federation of Canada (CHF).
In the 2010 edition of ‘Where’s Home?’, 22 housing markets across Ontario were analyzed and the results showed that despite rising vacancy rates, average rents in Ontario rose at a rate three times higher than inflation in 2009. The average vacancy rate across the markets was 3.5 per cent.
“While the recession in Ontario appears to be easing, low and modest income households continue to struggle when it comes to finding an affordable home,” said ONPHA executive director Sharad Kerur. “In the years ahead, unemployment will remain significant and housing affordability problems will likely become an even bigger issue in many Ontario communities.”
The most recent census data, recorded in 2006, reported that one in five Ontario tenants were spending more than half of their income on housing.
According to Harvey Cooper, manager of government relations at CHF Canada Ontario Region, to meet the demand for rental housing in Ontario, the province needs to build 10,000 units of purpose-built rental housing every year for the next decade. Over the last decade, Ontario has averaged a third of this.
ONPHA and the CHF have released an annual review of housing issues in Ontario since 1999.
Economic Update June 14, 2010
Posted by Mary Pougnet in Finance, Housing, Mortgages, Real Estate in Canada.1 comment so far
Points on current economic news – U.S. economic recovery appears to be losing steam. Data out this week showed a decline in net-trade and a pull-back in retail spending.
• The Federal Reserve’s Flow of Funds reported a 2.0% increase in household net-worth in the first quarter of 2010 as assets rose and liabilities declined.
• Household deleveraging and poor credit ratings are limiting the impact of monetary policy in stimulating aggregate demand.
• With growth decelerating, a core rate of inflation below 1% and market measures of inflation expectations trending downward, don’t expect the Fed to take their foot off the pedal any time soon.
• The Canadian economy has reached another turning point in its recovery
• The Bank of Canada began raising interest rates last week and this will have a major impact on highly-indebted households that have largely driven the economic recovery, thus far.
• The housing sector, which has been the primary beneficiary of this spending boom, will pull back through the latter half of 2010 and through to 2011.
• But these impacts will be mitigated by continued improvement in the labour market and export sector, as well as stronger business investment.
So while 2009 marked the transformation of recession to recovery, 2010 will mark the maturation of a vigorous recovery dependent on a few key sectors, low interest rates, and fiscal stimulus, to one that is more moderate and where drivers of growth will include sectors that have lagged so far.
CREA Revises 2010 Forecast June 7, 2010
Posted by Mary Pougnet in Finance, Housing, Mortgages, Real Estate in Canada.add a comment
Canadian resale home prices will be lower than previously predicted, according to revisions made by CREA to its 2010 forecast, due in large part to B.C. sales.
“Lower expected activity in British Columbia accounts for more than half of the downward revision in national sales activity,” the group said.
CREA cut its sales view to 490,600 units from their previous figure of 527,300. It also expects the average price to rise 1.6 per cent nationally in 2010, an almost four per cent drop from its previous forecast of 5.4 per cent.
According to the industry group, the decline in affordability in B.C. hurt sales in the province during Q1, but added sales in Ontario were on point with their predictions.
CREA now expects sales in B.C. to fall 5.9 per cent this year to 80,000 units.
Significant Sales Decrease in Calgary June 5, 2010
Posted by Mary Pougnet in Finance, Housing, Mortgages, Real Estate in Canada.1 comment so far
The sales of single family homes and condominiums both dropped from the same time last year in Calgary.
According to the Calgary Real Estate Board (CREB), the number of single family homes decreased 20 per cent from figures recorded in May 2009, a 7 per cent drop from April numbers. The condo sales for May (518) was a 19 per cent decrease from April, down 21 per cent compared to the same time last year.
“The first quarter of 2010 was exceptionally strong with our spring sales coming early in the wake of anticipated mortgage hikes,” said CREB president Diane Scott. “We believe there are a number of factors contributing to this marked slowdown including a declining number of first-time homebuyers in the market, a rise in monthly carrying costs as mortgage rates rise and to some extent market jitters in the wake of Greece’s financial crisis.”
The average price of a single family home in Alberta’s biggest city was $483,240, up 5 per cent from last month. Condo prices also rose 5 per cent from last month, 11 per cent since last year.
Single family home listings in May were up 33 per cent from last year while condo listings rose 22 per cent from May 2010.
Happiness is something that comes into o June 4, 2010
Posted by Mary Pougnet in Uncategorized.add a comment
Happiness is something that comes into our lives through doors we don’t even remember leaving open. ~ Rose Wilder Lane #MaryWoznyInspires
Canadian Dollar Hits 2 Week High June 4, 2010
Posted by Mary Pougnet in Finance, Mortgages, Real Estate in Canada.2 comments
Strong market reaction was spurred by the Bank of Canada’s rise in interest rates to 0.5 per cent. On Wednesday, the Canadian dollar hit a two-week high against the U.S.
Figures showing stronger-than-expected U.S. pending home sales for April provided more evidence of U.S. economic recovery. North American stock markets pushed the Canadian dollar to an intraday high at C$1.0371 to the U.S. dollar, a level not seen since May 18.
“It’s just some reversal from yesterday’s (Tuesday) decent selloff with a little risk — on today and that clearly benefits the Canadian dollar,” said Benjamin Reitzes, economist at BMO Capital Markets.
The Canadian dollar closed at C$1.0384 to the U.S. dollar, or 96.30 U.S. cents, up from C$1.0540 to the U.S. dollar, or 94.88 U.S. cents, at Tuesday’s close.
The energy of the mind is the essence of June 4, 2010
Posted by Mary Pougnet in Uncategorized.add a comment
The energy of the mind is the essence of life. ~ Aristotle #MaryWoznyInspires
Canadian Mortgage Professionals 