WRAPUP 1-Canada housing prices bounce higher but no crash seen
The median days on market last month was 14, up from 12 in July, but down from 26 in August 2012. The median price for the D.C. metro area reached its highest level for the month of August in six years.
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Youre starting from a very narrow market, so any expansion wouldnt go near the reckless lending practices of the early 2000s, he said. Were in the most conservative overall credit environment for housing finance that weve seen in almost three decades. Risky Lending A decrease in access for interest-only loans and those with terms longer than 30 years led to a slide in a Mortgage Bankers Association measure of loan availability last month. Those types of loans are less attractive to banks as planned rules created by the Consumer Financial Protection Bureau to curb abusive or risky lending kick in next year. Credit has been loosening faster for the wealthiest Americans, since bigger loans are mostly put on bank balance sheets instead of packaged into securities that get sold to investors. Applications for jumbo mortgages of at least $729,000 increased 59 percent in the first four months from a year earlier.
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JPMorgan Removes Lending Barriers in Booming U.S. Markets
Toronto and Calgary, Canada’s oil capital, led the way for price hikes. But prices dropped in five of the 11 markets surveyed across the country, which Pinsonneault said was hardly evidence of overheating. “We don’t see the market having a collapse similar to the one they had in the U.S.,” he said. The housing market has been a focal point for Canadian policymakers since a boom that followed the 2008-09 recession. A prolonged period of low borrowing costs and rising house prices led to record-high household debt and rising fears of a property bubble that could pop and give way to a financial disruption.
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