Real Estate Investing

 

Well, it’s nice to see that our neighbors are prospering. Even though the U.S. housing market isn’t doing terrible, per se, the markets of Canada and Mexico are absolutely flourishing!

 According to The Real Estate Bloggers, Mexico is seeing a boost in its market because of several factors, including new lending rules and a shortage of 6 million homes. By and large, Mexicans do not finance their homes, although new Mexican president Felipe Calderon has set a goal of 10 million new mortgages by the year 2010. Still, most Mexicans currently inherit their homes, build them by hand or buy them with cash. The falling interest rates and other factors are expected to drive the number of Mexican mortgage lendees higher than the current six percent.

“The trend could even slow immigration from Mexico by generating millions in jobs and personal savings as a fresh supply of loans gives many their first chance to own a house,” the Associated Press reports.

In Canada, meanwhile, the natives are comfortably immune to the much-publicized American real estate nosedive of late 2007. In fact, last year proved the strongest year ever for Canadian real estate. The Bank of Canada recently issued an interest rate cut, and average home price in 2007 reached as high as $307,265, an 11-percent increase over the previous year. Average home price in the fourth quarter of 2007 saw an even larger year-to-date increase at 12.1 percent. According to the Canadian Real Estate Association, summing up the nation’s real estate activity in 2007:

“There were 520,747 homes sold, a 7.6% increase from 2006. The previous record was set in 2005. Sales for 2007 marked the first time 500,0000 homes sold in one year. Activity also represented the largest year-over-year percentage increase since 2002.”

Ann Bosley, president of CREA, said lower interest rates will help keep housing affordable in light of price increases in the seller’s market. However, consumer confidence could be swayed by the U.S. real estate scene, thus affecting the Canadian market, Bosley said. Maybe instead, with such prosperous real estate markets so close by, the American market will be boosted through something like an osmosis effect.