Consumer confidence remains strong	Canada's Housing Fundamentals - A Big Difference from the U.S.   There is a huge difference between what is happening to housing markets in Canada and the United States.  While the subprime problems in the U.S. are spilling into Canada, but not into Canada's housing and mortgage markets.  Canada's housing industry is on a different track than its U.S. counterpart. The dramatic contrast between housing starts confirms this:   Canada Housing Starts - 229,600 in 2007 up from 227,295 in 2006 U.S Housing Starts - 1.38 million in 2007 down from 1.82 million in 2006  Canada's underlying demand for housing has also stayed on solid footing.  The Canadian housing cycle only began in 2002 and, being in its sixth year, should not be considered to be close to its end of cycle phase.  In contrast, the U.S. housing cycle bean in the mid-1990's.
Western Tiger keeps rolling	The Canada/U.S. Price Gap   The high Canadian dollar is both good news and bad news for Canada's new home builders.  It is definitely a factor in keeping interest rates stable.  It might even push rates lower as the elevated CAD has created a price gap with the U.S.  With the currency at par with the U.S., prices are noticeably out of line between the two countries.   We can expect a number of Canadian companies to adjust selling prices to reflect the reduced cost of imports from the U.S.  This means stable and possibly lower mortgage rates heading into the Spring selling season.  The downside from the high CAD is the loss of competitive position for many Canadian companies.  They will be forced to redouble their efforts to cut costs.  This means layoffs.   New home builders are therefore facing local market economic risks.  It will be important to know whether the major employers in your market are are exposed to competitive pressure as a result of the high CAD.  In addition, Canadian banks are likely to review lending standards carefully and new home builders could find that lending terms and loan covenants become more conservative.
	Development Supports Growth - Which Promotes Prosperity   In our local communities, just like in countries and provinces, economic growth is the foundation of prosperity.  One needs only look at the average incomes, unemployment rates, and out-migration numbers for slow-growth regions and communities to recognize the critical relationship between growth and prosperity.