Wow, that’s great. I wonder if it’ll ever go through.

“In addition, consumers could pay a fee to list their homes directly on MLS.”

“Activity and prices will improve in the second half of this year”

I wonder of CMHC is aware that the year is all but over and that the housing market probably can’t really “improve” in most parts of the country?

Housing activity seen reviving: Activity and prices will improve in the second half of this year and grow further in 2010, CMHC says

“Among provinces, housing starts in Saskatchewan will slide to just 3,600 units this year, nearly half levels of the previous year. A strong economy and a relatively robust labour market, which will attract migrants to the province, will cause housing starts to rebound to 4,350 units next year, CMHC expects.”

In fact, the lengthening of amortizations was an issue before the economic downturn and the subsequent historically low interest rates, via increasing demand by previously nonqualified buyers, lowering supply, and driving up prices. If wages had also risen, this may have been sustainable; unfortunately, it just became easier to carry the debt. The two of them together (long amorts plus very low borrowing costs) have created a scenario in which the pendulum of affordability has perhaps swung too far, given the precariousness of the economic recovery and the future direction of interest rates. People on the edge of affording the monthly payments at these rates and amortization schedules may not be able to carry the debt when things change. Amortization length is still up in the air, but interest rates are certainly not going down from here.

Almost as bizarre as suggesting we haven’t learned anything since the great depression. We’ve just witnessed the worst bay street implosion since the great depression and the result was a recession no worse than what we saw in the 1980’s. Heck, outside the automoble industry where they’ve caused their own pain things are that bad. Life for the average consumer is actually MUCH better then almost any recession in history. Things aren’t fantastic, by the hyperbole by some here borders on things I can’t say due to blog rules!

“Anything you adjust (amortization, financial requirements or interest rates) has the potential to crash the market in a few years time when everything resets.”

That’s my point. I’m just saying that the powers that be a very aware of how quickly things would go from bad to worse if they move too much too quickly.

Steven,

I suppose it’s safe to say that you have ever used CMHC to buy property then?

I’m not suggesting for a moment that standards have not become too lax. I am suggesting that over time, CMHC has done much good in terms of opening up how ownership opportunities for Canadians, and I suspect that we have all be enriched through those opened doors. There’s a a fair bit going on between capitalism and communism, and while we have definitely moved further to the left, suggesting that we are in danger of becoming a communist nation is a bit over the top.

Oh, by the way, is CMHC losing money or are you forecasting?

Carney’s mandate is to control inflation. He has no powers over the banking act that controls amortization and downpayments. And who changes acts in this country – politicians. He can only suggest and influence the policy making of Flarety and the CMHC. Norm, do you think politicians know what the “key” is. I am sceptical that policy makers have the guts to make hard decisions and tell Canadians what is really good for them.

Society has learned very little from the Great Depression. The thinking behind current stimulus was that during the Great Depression governments were slow to react. I feel society will learn from current economic conditions that stimulus/relief acts against the longer-term interests, and undermines the independence and resilience of economy regardless of how fast money is injected.

The economy is a force that society can only debate over until a resolution is achieved. Just imagine we are on a flight in a airplane called “the economy”. If it’s gonna crash, there really is nothing that can be done other than to take preventive measure to have a safe landing. So far some measures have been taken to prepare for the landing, but “may I have your attention please” there is still fuel in its wings. Any proposals on what to do with the explosive material? I know fuel is expensive, but I don’t want to be burned because someone else sees value in keeping the fuel. I suggest dumping the 35 year amortization and low qualification to buy a house combustible!

Rick, “Of course the question now is what is he waiting for.” I would say the aforementioned economic recovery, wouldn’t you?

“CMHC has grown to a uncomfortably socialistic point that Canada is pushing communism. Steven, you bring up an interesting point. At one point in time there was a tradeoff in terms of lifestyle, spending habits and discipline to become a homeowner. CHMC has removed this requirement and diligence by rewarding and incentivizing bad behaviour.

The key will be to bring just enough pressure to “cool” the market, not to crash it.

He hasn’t said he’s going to do anything yet, has he? I think he said that he has options to cool the housing market besides raising rates if he deems it necessary.

“…that Canada is pushing communism.”

Communism Steven? Because of CMHC? How is CMHC pushing our country towards communism?

I think the boondogle is Harper’s, and Flarety’s. Carney stepped into David Dodges
shoes after the boondogle got started. Carney is pursuing other measures to cool houses other than raising interest rates. He hasn’t said it yet, but I think he’s going for shorter amortization and higher down payments on houses. I’m all for it! I disagree with CMHC and have never bought a house with them underwriting it. CMHC has grown to a uncomfortably socialistic point that Canada is pushing communism.

I believe this building was converted to condos and the units are being sold off as is, so they’re a bit dated and need some work. Nine of the ten sales were made by the same agent, perhaps to the same buyer who picked them up for revenue or resale. Guessing.

Ten condos between the price of $75 and 100k, that does sound interesting and somewhat strange? And sales, amazing what low interest rates and lenders who make all the profits and share in none of the risk can do for the housing market. But the government claims to have many more arrows in their quivers, you know 10% down and 25yr ammortizations. Of course now our economy has reached total goverenment control, intervention and manipulation. The economy can’t correct, the government won’t let it. We are no longer in a market economy, this approach did’nt work well for the Soviet Union, and of course it’s just a matter of time before the government gets a big slap which they don’t see whilst they are so busy with their fancy financial foot work. The tax payers will pay more tax then they should have which doesn’t help GDP much, to pay for Harper, Flarety, and Carney’s boondogle economic approach. The three &*^$%’s