My Blog

January 26, 2008

SAT 26 JAN

HOW THE U.S. MARKET WILL IMPACT CANADA By Anna Mae McPhail

Ted Zaharko Calgary said -the Canadian economy is strong and in regards to business of adjusting to the credit crunch that was created by the subprime nonsense in the U.S.A this issue will be managed.

 

We will carry on, just like we managed after the economic disaster of the early 80's.  Suprime lending was never available in CAnad and it should not have in the United STates either.  People just got greedy and now everyone is paying for that.

 

His other comments eluded to the fact that this spring market in Canada should be good. 

 

We are not predicting few sales, and lower average prices from what they were last year. 

 

2-4% is the predicted increase in values.

 

SUBPRIME LOAN DEFINITION: -

A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans.

Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. Although the additional percentage may seem small, for mortgages and other large loans, this translates to thousands of dollars worth of additional interest payments.

SAT 26 JAN

THE DIFFERENCE IN THE CANADIAN AND U.S. HOUSING MARKETS. By Anna Mae McPhail

Ann Bosley - President of the Canadian Real Estate Association  Toronto said...

 

Canadians have paniced thinking that the subprime crisis in the U.S. will spread to them. 2008 will be another great year for Canadian Realtors.  We have the water, the energy, the oil, the land and most importantly the confidence of the Canadian consumer.

 

According to the Canadian Bankers Association less than a quarter of a per cent of Canadian mortgages were in arrears a record low. 

 

Other knowledgeable real estate professionals have said ...our view is that the Canadian and Amercian real estate markets have taken different paths and will continue to do so in 2008.  Canadian markets are calling for an overall healthy environment. 

 

What happens when you buy property.  It increases in value and it remains that the wealthiest Canadians own property.  Its time to buy real estate. Cha-Ching.

 

Call a MLS Realtor. McPhail Realty Services Ltd. Brokerage, Anna Mae McPhail, Broker of Record has been selling real estate in Ontario since 1976. 

 

Brokers and sales professionals operating successful businesses as well as consumers are all watching their local markets and economics.  Understanding how these markets react to change will stand them in good stead.