The CHBA has released its September 2010 – Canadian Housing Industry Economic Update.
Some of the highlights…
- Financial market worries have caused a search for safe-haven investments, pushing up U.S. and Canadian government bond prices.
- Downward pressure on government bond yields is pulling down residential mortgate rates.
- U.S. economy is seeing a temporary loss of momentum.
- Economic indicators suggest a true U.S. recovery in 2011.
- Credit availability is changing in the US as senior loan officers are beginning to ease standards on loans. Canada has not been held back by credit availability as much as the U.S.
- Canada’s economy is currently growing at roughly double the rate of the U.S. economy.
- Adult employment is on a sharp uptrend and is a key determinant of housing market health.
- It is believed that the July 1st implementation of the HST has affected the timing of purchases, adding impetus to the timing of these purchases.
- New house prices do not indicate a housing market downturn. Compared to the same month a year ago, the new house price index is up by 3.3%.
- June residential permit approvals were up 2.0% from the month before and 35% from June of 2009.
- Canada’s position as an international safe haven for investment is attracting foreign buyers to the condo market.
To read the full CHBA Canadian Housing Industry Economic Update, please click here…