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Outlook for housing in Canada over the long term is strong although it is unlikely that 1973‘s record level of housing <starts will be maintained, the Bank of Montreal says in its November Business Review. "The review notes that the Central Mortgage and Housing Corporation has forecast that the demand for housing in the period 1971â€" 1976 would average 233,000 units annually. In the first three years of this period, housing completions have averaged 228,000, slightly under the demand projecâ€" tion. With incomes high and rising, and vacancy rates remaining low, it says, the basic demand factors stay Continued need for housing "On the supply side, however, there may be more substantive reasons to exâ€" pect some slowing down," the review comments. ‘‘Many building materials are at present in relatively short supply and prices have risen sharply. Furthermore, with investment spending of a nonâ€"residential nature speeding up, a shift into this area of men, materials and capital from the housing sector could well occur.‘" The review also points out that the supply of good, serviced land has decreased after three years of heavy building which have seen housing starts in the first nine months of 1973 climb to a level 64 per cent above the corresponding period in 1970. While increases in land costs have shown no signs of acâ€" celerating, rising at an average annual rate of about 6 per cent since 1962, conâ€" struction costs have recently begun to soar. Since 1970, the i PPacket session was held for the choir of Cordella Avenue Public School. The session took The mothers of pupils at Cordella Avenue Public School not only baked the goodies that went place in the school gym prior to the bake sale. A mad rush was made to the goodies table the on sale last week, they came to the school and purchased them back. Students held the bake moment choir teacher Miss F. Evans announced rehersal was finished. The choir is busy sale, with the help of teachers, to pay for a trip to the Royal Winter Fair and Pioneer Village. these days learning Christmas carols. Mn inbbittuks Aerttnuiabt un thre T A prac_:tit_:_e session was held for the choir of Cordella A\}énfié Pubiicgc“;t;l AVA ELECTRONICS\. MERRY CHRISTMAS \. 1102 WILSON AVE. (JUST WEST OF KEELE) _ /\ 636â€"7110 SHOPPERS WORLD MALL (STEELES & NO. 10 HWY.) 451â€"1532 TOLL FREE b ." TO YOU ALL FROM On the demand side, Canada has a growth in adult population due to the postâ€" war baby boom which is more than double that of the United States. This â€" plus other factors such as a longâ€" run movement from rural to urban communities, early marriages and _ more divorces than in the past â€" leads to a relatively higher demand for housing. A sharp decline in U.S. housing starts recently has raised questions about how long the threeâ€"year boom in Canada can continue, But, the review indicates, there are important differences between Canada and the U.S. both in demand and supply. cost of residential conâ€" struction per square foot has risen at an average annual rate of 7.3 per cent. The increase in the most recent twelve month period was a whopping 13.7 per cent. In Canada, the inâ€" stitutional framework is quite different. It is true that the trust companies and the mortgage loan companies which at present account for some 45 per cent of the mortgage market have a On the supply side, one important reason â€" for the decline in the U.S. has been a partial drying up of the pool of mortgage funds. This is partly because a good portion of the U.S. mortgage market is accounted for by specialized thrift institutions â€" _ savings and loan associations and mutual savings banks â€" which run into serious competitive difficulties attracting savings during periods of rising interest rates, the review explains. large proportion of their assets in mortgages, but their deposits are also largely contractual in the form of term certificates, on which the interest costs do not change until maturity. Thus, when rates rise there is a lag in the increase in deposit costs and this alleviates some of the squeeze on their margins. ‘"In the past what has been more responsible for the cyclical showdown in this country has been a restrictive monetary policy which has been used from general economic activity so as to fight inflation. At such times, the money supply has BEST WISHES FOR A MERRY CHRISTMAS AND A HAPPY AND PROSPEROUS NEW YEAR 1 % Sincerely PHIL WHITE ~ MAYOR BOROUGH OF YORK Although interest rates are historically high at present, the monetary authorities have continued to permit a fairly substantial growth in bank deposits, the banks â€" which now account for some 30 per cent of the funds for new residential construction â€" have continued to be very active mortgage lenders. contracted (or expanded very slowly) forcing the banks to cut back on morâ€" tgage loans and credit generally, and the resulting â€" credit stringency sooner or later has also adversely affected the ability of other mortgage lenders to acquire funds." W.P. GRAHAM & SONS 241â€"1231 1942 WESTON RD. WESTON FRIDAY, DECEMBER 21st, 7.30 p.m. R.C.5.C.C. "ILLUSTRIOUS®" HICKORY TREE ROAD (NEXT TO WESTON ARENA) 25 REGULAR GAMES plus EXTRAS SPECIAL CHRISTMAS PRIZES SEASON‘S GREETINGS CHRISTMAS BINGO BEST WISHES FOR THE NEW YEAR DAVID LEWIS, M.P. Yorkâ€"South 241â€"8870 , December_20, 1973â€"Page 9