Condo overbuilding is a risk says bank executive… Calgary resales stay hot in August… Edmonton officials aim to improve information on developments… And Ontario floods caused $90 million of damage says Insurance Bureau…
Condo overbuilding is a risk says bank executive
The chief risk officer for Canada at Toronto-Dominion Bank says that overbuilding of condos is a risk to the housing market. Lisa Reikman says that the bank is watching the levels of supply in the sector and like many others, would welcome more data on foreign investors. She says that although the market is overvalued it is more like 10 per cent rather than some of the figures that have been suggested by organizations outside Canada. Lack of data on foreign investors also leaves analysts guessing about the potential impact if they were to suddenly sell their investments creating an oversupply and forcing prices down. Reikman acknowledges the concern about interest or unemployment rate rises but believes that the risk is low. Read the full story.
Calgary resales stay hot through August
Figures from the Calgary Real Estate Board show that the market was still vibrant in August, with MLS sales increasing for the 17th consecutive month. There were 2,267 resales in August, an increase of 3.42 per cent on a year earlier and the average sale price was $477,783; a 5.2 per cent rise year-over-year. Activity on single-family homes declined for the second consecutive month but the condo sector more than made up the slack with those priced lower than $400,000 in demand. Condo townhouse sales increased by almost 20 per cent reflecting the increasing popularity of the sector. Read the full story.
Edmonton officials seek to improve information
Officials in Edmonton are planning improvements to the information that is available regarding development plans. They are working with the construction and realty sectors with the aim of giving clearer details about developments in the city which will allow home buyers to know what’s planned in their neighbourhood. The move follows complaints from homeowners who discovered that nearby farmland was being developed for condos, something they say they weren’t informed about when they bought their homes. Read the full story.
Cost of Ontario floods estimated at $90 million
Insurance Bureau of Canada reports that the preliminary estimate for insured damage caused by heavy rains and flooding in the Burlington, Ontario area in early August was just over $90 million, according to Property Claim Services. On August 4, Environment Canada issued a series of severe thunderstorm warnings and watches for parts of southern Ontario, including Burlington. During the storm, Burlington received so much rainfall that local highways had to be closed because of flooding in some places, as creeks and rivers throughout the city were inundated and crested at the same time.
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