Modest Firming In Global Housing Markets Through Mid-Year: Scotiabank
“It’s the same American instinct to gamble on land,” Glaeser says, noting that even George Washington was a big land speculator. What’s more, the U.S. tax code still encourages home ownership through the mortgage interest deduction, Glaeser notes.The government also now backs more home loans than ever, about 85% of new loans through Freddie Mac, Fannie Mae and the Federal Housing Administration. While reducing the government’s role in the home loan business is being discussed, reforms are likely years away. The biggest impediment to another housing bubble might be that “a whole generation of buyers have seen that housing can go down,” says Discover Home Loans economist Cameron Findlay. The U.S.
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Sellers Test Housing Market Amid Rising Prices
Toronto housing starts dropped from a record 48,000 units last year to a 33,000 annual rate over the first eight months of 2013. Based on annual household formation of close to 38,000 from 2006-2011, starts have moved back below underlying housing demand. The slowdown primarily reflects fewer high-rise projects breaking ground. Toronto apartment starts have fallen almost in half this year, from 30,000 units in 2012 to an annual rate of 16,000 from January through July.
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Nationally, there were 1.98 million homes listed for sale in August, according to a report released Thursday by Realtor.com. That was up by more than 24% from webblog the low point in February and up 1% from July. Inventories have increased for six straight months. While the overall level of homes for sale remains relatively depressed, the report suggests that inventory may have hit a bottom earlier this year after an extended two-year decline. The report also suggests that home-buyer traffic has eased following a period in which mortgage rates have jumped by more than one percentage point.
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