October 23, 2017
Housing rules give Bank of Canada room to proceed with caution
After back-to-back interest rates hikes, the Bank of Canada can stay on the sidelines for longer than first anticipated, with tighter mortgage rules slowing the housing market and uncertainty about NAFTA clouding the outlook.
While more rate increases are on the horizon, possibly before the end of the year, the central bank is expected to hold rates at 1 percent on Wednesday as the list of unknowns and a moderating economy force policymakers to watch and wait.
© REUTERS/Chris Wattie/File Photo FILE PHOTO - A sign is pictured outside the Bank of Canada building in Ottawa
October 12, 2017
BC Home Sales Ratchet Higher in September
The British Columbia Real Estate Association (BCREA) reports that a total of 8,340 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in September, an increase of 9.9 per cent from the same period last year. Total sales dollar volume was $5.8 billion, up 30.2 per cent from September 2016. The average MLS® residential price in the province was $693,774, up 18.5 per cent from September 2016.
“BC home sales rose nearly 5 per cent from August on a seasonally adjusted basis,” said Cameron Muir, BCREA Chief Economist. “Total active listings...
October 10, 2017
Skirting around B.C.'s tax on foreign buyers
Darrryl Dyck/For The Globe and Mail
Court records and advertisements reveal several ways potential buyers and realtors are eyeing as ways around the 15 per cent tax on foreign buyers, reports Xiao Xu
British Columbia's introduction of a foreign-buyer real-estate tax dumped a bucket of icy water on Vancouver's smoking hot market just over a year ago. Average house prices immediately fell, declining for six months before showing signs of renewed vitality in April and May.
A Globe and Mail examination of court records and advertisements reveals...
October 10, 2017
Canadian housing starts trend decreased in September
The trend in housing starts was 214,821 units in September 2017, compared to 220,573 units in August 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
“Housing starts are trending lower in September after increasing for eight consecutive months,” said Bob Dugan, CMHC’s chief economist. “Nevertheless, new home construction remains very strong as the seasonally adjusted number of starts was above 200,000 units for four straight months'....
October 6, 2017
Douglas Todd: Is China bursting Vancouver’s housing bubble?
The author of Millionaire Migrants was one the first to provide evidence that the foreign real-estate dreams of China’s wealthy have arguably had more impact than anything on Metro Vancouver’s housing unaffordability.
UBC geographer David Ley, along with SFU’s Wu Qiyan, told me early this year the city’s real-estate bubble would be punctured when leaders of the People’s Republic of China further restrict money leaving their country.
Now strong signs are appearing that Metro Vancouver’s real-estate balloon has indeed been pricked by China’s heightened...
October 3, 2017
Home buyer demand continues to differ based on housing type
Apartment and townhome activity is outpacing the detached home market across Metro Vancouver*. This activity helped push total residential sales above the historical average in September.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,821 in September 2017, a 25.2 per cent increase from the 2,253 sales recorded in September 2016, and a 7.3 per cent decrease compared to August 2017 when 3,043 homes sold.
Last month’s sales were 13.1 per cent above the 10-year September sales average.
“Our detached homes market is balanced...
September 29, 2017
RBC Economics said in a report Friday that its housing affordability measure for Canada deteriorated for the eighth straight quarter
Housing affordability in Canada hit the worst level in 27 years in the second quarter of this year, according to a Royal Bank of Canada report.
RBC Economics said in a report Friday that its housing affordability measure for Canada deteriorated for the eighth straight quarter.
The least-affordable place to purchase a home remains the Vancouver area, where affordability worsened after two straight quarters of improvement but remains better than a year ago. Outside of British Columbia and Ontario, affordability remains mostly stable, RBC said.
RBC’s housing affordability measure shows the proportion...
September 19, 2017
INTEREST RATE LIFT-OFF
• 5-year fixed mortgage rates hit three-year high
• Rapid economic growth, but still no sign of inflation
• Bank of Canada tightening, but how quickly?
Mortgage Rate Outlook
Since our second quarter forecast, our projected rise in mortgage rates has occurred and accelerated, as the Bank of Canada—spurred by economic growth that far exceeded its outlook—turned suddenly hawkish. The Bank surprised with a 25-basis point increase in July and then again in September, taking its overnight rate back to 1 per cent, where it was before the precipitous drop in oil prices...
September 15, 2017
Canadian home sales edge up in August
According to statistics released today by The Canadian Real Estate Association (CREA), Association (CREA), national home sales posted a small gain in August 2017.
- National home sales rose 1.3% from July to August.
- Actual (not seasonally adjusted) activity stood 9.9% below last August's level.
- The number of newly listed homes fell a further 3.9% from July to August.
- The MLS® Home Price Index (HPI) was up 11.2% year-over-year (y-o-y) in August 2017.
- The national average sale price climbed by 3.6% y-o-y in August.
The number of homes sold via Canadian MLS® Systems edged...
September 14, 2017
BC Home Sales Robust and Unchanged in August
The British Columbia Real Estate Association (BCREA) reports that a total of 9,162 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in August, an increase of 2.4 per cent from the same period last year. Total sales dollar volume was $6.2 billion, up 22 per cent from August 2016. The average MLS® residential price in the province was $678,186, a 19.1 per cent increase from August 2016.
“BC home sales in August remained unchanged from July, on a seasonally adjusted basis,” said Cameron Muir, BCREA Chief Economist. “Strong economic conditions...
September 12, 2017
BC Government Limits Choices for Real Estate Consumers
The BC Government's announcement to ban the practice of limited dual agency means that consumers can no longer choose the REALTORS® they want.
“Every day, REALTORS® help their clients understand real estate transactions, so they can make informed decisions,” said BC Real Estate Association (BCREA) President Jim Stewart. “Over my nearly 25-year career as a REALTOR®, many long-standing clients have developed trust with me, and now my clients have no choice but to start from the beginning and build new relationships. Trust is a crucial part of what is often the largest...
September 6, 2017
BC Commercial Leading Indicator Surges Higher
The BCREA Commercial Leading Indicator (CLI) posted its largest increase since 2009, rising by 3.7 index points in the second quarter of 2017 to 133.1. That increase represents a 2.8 per cent rise over the first quarter and a 6.6 per cent increase from one year ago.
The sustained rise in the CLI reflects strong growth in economic sectors beneficial to commercial real estate activity. An uptick in economic activity last quarter further reinforces the already strong trend in the CLI. That signals a continued economic environment that is very supportive of growth in investment, leasing and other commercial...
September 5, 2017
Bank of Canada increases overnight rate target to 1 per cent
The Bank of Canada is raising its target for the overnight rate to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.
Recent economic data have been stronger than expected, supporting the Bank’s view that growth in Canada is becoming more broadly-based and self-sustaining. Consumer spending remains robust, underpinned by continued solid employment and income growth. There has also been more widespread strength in business investment and in exports.
Meanwhile, the housing sector appears to be cooling in some markets in response to recent changes...
September 5, 2017
Condominium sales drive August activity
Competition for condominiums and townhomes pushed Metro Vancouver* home sales above typical levels in August.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 3,043 in August 2017, a 22.3 per cent increase from the 2,489 sales recorded in August 2016, and a 2.8 per cent increase compared to July 2017 when 2,960 homes sold.
Last month’s sales were 19.6 per cent above the 10-year August sales average.
“First-time home buyers have led a surge this summer in demand in our condominium and townhome markets,” Jill Oudil,...
August 31, 2017
Robust BC Home Sales Supported by Strong Economy
The British Columbia Real Estate Association (BCREA) released its 2017 Third Quarter Housing Forecast update today.
Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 10 per cent to 100,900 units this year, after reaching a record 112,209 units in 2016. Strong economic fundamentals are underpinning consumer demand and are expected to keep home sales at elevated levels through 2018. The ten-year average for MLS® residential sales in the province is 84,700 units.
“British Columbia’s postion as the best performing economy...
August 25, 2017
Eliminating tolls might be a bridge too far for B.C. taxpayers
First off, there is the timing. In government, Fridays are usually reserved for bad-news announcements that will, hopefully, fade away over the weekend. Really bad news is relegated to late Friday afternoon, when, again hopefully, coverage will be minimal.
So Premier John Horgan and the BC NDP announcing on Friday that the tolls on the Port Mann and Golden Ears bridges will be eliminated as of Sept. 1 is a curious thing.
It is, after all, great news for those who have to travel over either bridge on a daily basis. The government estimates it will save daily car commuters $1,500 a year and commercial...
August 22, 2017
Commercial real estate activity below last year’s record-setting pace
Commercial real estate activity in the LowerMainland declined from the record highs of one year ago and returned to more historically typical levels in the second quarter (Q2) of 2017.
There were 595 commercial real estate sales in the Lower Mainland in Q2 2017, a 32 per cent decrease from the record 875 sales in Q2 2016, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).
The total dollar value of commercial real estate sales in the Lower Mainland was $2.886 billion in Q2 2017, a 37.5 per cent decrease from $4.615...
August 15, 2017
Canadian home sales fall further in July
According to statistics released today by The Canadian Real Estate Association (CREA), national home sales declined further in July 2017.
- National home sales fell 2.1% from June to July.
- Actual (not seasonally adjusted) activity in July stood 11.9% below last July’s level.
- The number of newly listed homes edged back by 1.8% from June to July.
- The MLS® Home Price Index (HPI) was up 12.9% year-over-year (y-o-y) in July 2017.
- The national average sale price edged down by 0.3% y-o-y in July.
The number of homes sold via Canadian MLS® Systems fell 2.1% in July 2017,...
August 14, 2017
Summer Housing Market Continues to Sizzle
The British Columbia Real Estate Association (BCREA) reports that a total of 9,275 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in July, down 6.3 per cent from the same period last year. Total sales dollar volume was $6.48 billion, down 1.3 per cent from July 2016. The average MLS® residential price in the province was $698,761, a 5.3 per cent increase from the same period last year.
“Strong economic growth, an expanding population base and a lack of supply continue to drive BC home sales and prices this summer,” said Cameron Muir, BCREA...
August 14, 2017
For many young Canadians, home won’t be a house
It’s probably time for Prime Minister Justin Trudeau to tell his young followers that the “Canadian dream” no longer comes with a lawn.
Last week, Statistics Canada reported a big drop in the issuance of building permits for single-family homes in cities with populations greater than 10,000. Municipalities in June granted permissions for such structures at a seasonally adjusted rate that would yield 65,100 units in a year, the slowest pace since April 2009 and one of the weakest on records that date to 1960.
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