Housing Bust

Something is happening out there...

It certainly feels like our housing boom in now officially over.

Canada Mortgage and Housing Corporation (CMHC) said consumer home-buying intentions in the Toronto area have dropped sharply this year.

According to their report only about 6 per cent of households in the Toronto area intend to buy a home this year and Calgary and Edmonton have already changed from hot to cold.

The delayed arrival of housing bust can be partly attributed to mortgage innovation during the last two years.

Zero down mortgages and longer amortization periods of up to 40 years opened the market to more buyers and prolonged the housing boom but not anymore.

Are we going to have a U.S. style housing correction? Probably not, but I want you to prepare for the worst because you just never know.

With oil at over $130.00 per barrel my investment guru tells me to hold on to my oil stocks because he feels oil is just beginning its upward ride.

He believes oil will hit $150.00 and possibly even $200.00 per barrel later this year and that’s going to push our economy into longer than expected slowdown.

Mortgage lenders are already starting to tighten their lending policies and it is becoming more difficult to tap into your home equity to consolidate bills.

I can still do a second mortgage up to 100% of home value in certain situations but that may not last forever so if you have credit card balances and available home equity then I urge you to consolidate them now before it’s too late.

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Thank you

Joe Malek, AMP
Accredited Mortgage Professional