“With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” said Mathieu Laberge, Deputy Chief Economist for CMHC.
The full market report is available here – http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2012_Q01.pdf
Some notable details include:
Western Canada: All four Western Canadian provinces will see growth in housing starts in 2012, with Alberta leading the way at 13.2 per cent. In 2013, all western provinces, except Saskatchewan, will see positive growth. In 2013, Saskatchewan’s total starts are expected to contract by 2.7 per cent.
Mortgage Rates: Short-term mortgage rates and variable mortgage rates are expected to remain near historically low levels. The outlook also assumes that mortgage rates will remain flat through most of 2012 and start increasing moderately in late 2012 or early 2013. This will continue to support housing demand.
Rental Outlook: In Vancouver, more than 35,000 new residents are projected to settle in the region annuall. In Calgary the average rent for a 2 bedroom apartment is anticipated to rise from $1.084 in Oct 2011 to $1.125 in Oct 2012 (in Vancouver that average is $1.285 in 2012). In Edmonton the vacancy rate is expected to fall for the third consecutive year in 2012; from 3.3% in Oct 2011 to 2.7% in Oct 2012 (in Vancouver that average is 1.1% in 2012).
British Columbia update is on Page 9 – Alberta on Page 10.
What we see in this report is stability across Canada and most notably a steady increase in all economic indicators in the west; including continued strength in the commodity-driven economy in Alberta. Alta Pacific feels confident in its business of lending primarily in the Western provinces. The foreseeable years will continue to provide quality lending opportunities for the fund and the security of our assets are expected to stay stable and even increase in value.
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At Alta Pacific we are active in the specialty mortgage market in Western Canada. The big conventional banks focus on conventional mortgage opportunities leaving opportunities in the specialty mortgage sector for Alta Pacific Mortgage Investment Corp. and other MICs that participate in this market. If you are interested in learning how you can share in the returns generated by specialty mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for Canadians with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and will work to understand your current situation and future need. Feel free to contact us directly with any questions you might have.
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