The seasonally adjusted annual rate of housing starts decreased by 5,700 units from June to July, the 
CMHC reported Tuesday, but the organization’s chief economist remained optimistic that the housing market is stabilizing.
“The slight decline in July’s housing starts is mostly attributable to the volatile multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre (urban multiple starts decreased nationally by nine per cent). “Although July registered a decline, housing starts are expected to improve throughout 2009.”
CMHC also forecast that housing starts will gradually become more aligned with demographic demand, currently about 175,000 units per year. Several housing industry players have also conveyed optimism about the Canadian housing market. The Globe and Mail reported five signs for a housing recovery following the housing starts report, including the increase in home sales in July, low mortgage rates and a jump in building permits.
Statistics Canada reported Tuesday that building permits rose one per cent in June.
Low interest rates and house prices are the driving incentives for potential first-time homebuyers across Canada, according to a new report by Royal LePage Real Estate Services.
“While [first-time buyers] appreciate government incentives such as tax credits, it is markedly improved affordability that is proving to be the powerful drawing card,” said Phil Soper, president and chief executive of Royal Lepage. “Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.”
In the survey, potential buyers were asked to rank their top incentives for buying a first home – 86 per cent cited low interest rates followed by 81 per cent who said lower housing prices were the top motivating factor. Job security and a stable economy were the next ranked incentives.
The International Mortgage Service offers Canadian residents the option to purchase or remortgage a holiday home, buy-to-rent or buy an investment property in 11 countries, including the UK, Canada and selected locations in the US. While payments are available in 10 different currencies, the currency selected must be the same as the applicant’s main income or the local currency of the property location.
Interest-only payments are an option for most international mortgages and Lloyds TSB also offers an international banking service for customers to set up their mortgage payments. The company’s Canadian representative offices are located in Toronto and Vancouver.
