The current market scenario has brought everyone on his toes. One should be careful before investing in real estate. Do confirm prices by other builders/other sources. Idaho Real Estate
Perhaps a good reason why home prices are rising in the face of a severe recession is the fact that the Fed. Gov't. is backing 100% of mortgage backed securities issued in the country:http://americacanada.blogspot.com/2009/07/cmhc-and-our-government.html"Between the beginning of 2007 and 2009 Canadian Banks increased their total mortgage credit outsanding listed on their books by only 0.01% (see CMHC chart below)...The only growth has been in the securitization of Canadian mortgages. In Canada this scheme has worked very well despite the credit crisis since the government of Canada insures 100% of any losses (not just the 20% downpayment). This means that the securities are as secure as government bonds, yet pay a higher premium (currently 3.1%).The banks get to keep the difference between the interest rate charged to consumers and the rate paid to investors. The result of a government backing is cheaper subsidized funds for them to issue mortgages with. It also removes all risk."
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