Thursday February 19th 2009 marked the day of US President Barrack Obama’s first visit to Ottawa.
Today we also saw the following article released by CMHC – Housing will Continue to Moderate in 2009.
How are these related?
Well when we heard Prime Minister Stephen Harper and President Barrack Obama speak of their commitment to an ongoing strong relationship between our two countries; including stimulus packages that consider economic recovery for both countries, one can start to feel some renewed confidence into the future of Canada and the USA. We even heard Democratic President Obama say “tax cuts” – I’m sure Harper liked those words. In addition, Obama was aware enough to know – and state – that $1.5billion dollars in DAILY trade occurs between our two countries. This only underscores the importance of strong cohesive ties.
So what does this have to do with the CMHC.ca article? Well, it speaks to predictions in one of the most critical economic indicators in this country – 2009 housing starts and existing home sales. And since so much of our country’s economic condition (whether it be tied to the manufacturing sector in the eastern provinces or oil and gas in Western Canada) is tied to the condition of the US economy, we are encouraged when we hear news that could stimulate confidence in all areas of the Canadian economy. Of course, we all appreciate that 2009 housing starts and existing home sales will not match 2007 and 2008 (well, the first half).
Here at AltaPacific Mortgages we’re convinced that investing in Canadian real estate – or as we encourage, investing in Canadian mortgages through our mortgage fund – is a good choice for investor portfolios.
Some key stats and predictions from the CMHC article - Existing home sales, as measured by the Multiple Listing Service (MLS®), are expected to decline 14.6 per cent during 2009 to 370,500 units. In 2010 the level of MLS® sales is expected to increase by 9.3 per cent to 405,000 units. The average MLS® price is also expected to decrease over the course of 2009. Average prices are forecast to be $287,900 for 2009, a decline of 5.2 per cent, while 2010 will see little change from 2009 average prices.
If you are a Canadian investor interested in how you can invest your RSP, RRSP, RRIF or private placement funds in a mortgage pool, please feel free to contact us. We will work to provide you with careful and honest guidance to make your next investment decision secure and profitable.
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