Bank report shows price increases for a 9th consecutive month… Consumer finances cause concern… Developers consider the needs of pet owners… And Edmonton condo owners could face jail if they don’t demolish their buildings…
Teranet-National report shows increase for 9th consecutive month
The latest figures from Teranet-National Bank exceeded the historic average for August, with a 0.8 per cent increase for repeat sales of single-family homes. After a 4.9 per cent rise in prices in July, there was a 5 per cent increase in August, bucking the forecasts of many experts who were expecting a slow-down. The report from Teranet showed price gains in all but one of 11 territories surveyed; Montreal was the only one to see decline, with Winnipeg, Ottawa and Toronto seeing the biggest increases. Year-over-year price rises were largest in Calgary and again all but one saw increases, with Quebec City bucking the trend with a slim drop.
Consumer finances cause concern
The average Canadian household has increased its level of debt against disposable income. New data from Statistics Canada reveals that debt including mortgages has edged up from 163.1 per cent of disposable income in the first quarter of the year, to 163.6 per cent in Q2. The average since 1990 has been 119.7 per cent but was 164.1 per cent towards the end of last year. With central bank rates low, interest payments made up a smaller percentage of disposable income in Q2 than at the start of the year. Mortgage debt has risen by more than income; 1.4 per cent against 1 per cent; and is a major concern for the economy when interest rates eventually rise. The total Canadian mortgage debt is $1.17 trillion. Read the full story.
Developers ‘paws’ for thought; the influence of pets
Condo developers are taking the lead when it comes to the needs of pet owners in Vancouver. As the thirst for condos has grown, often from those would traditionally be heading to single-family homes, developers have had to provide more for family living; that means considering children but also pets. Where once the condo development would target young professionals with facilities such as gyms, now you are increasingly likely to find a dog walking run or pet spa! There is also a shift in the attitude towards pet owners in the rental market, with more landlords accepting four-legged residents, although numbers are still small. It would seem that there is a marketing opportunity for developers and realtors in targeting pet owners and being proactive in providing information on condos with pet facilities and also the proximity of homes to city dog-walking parks, vets and other animal-friendly facilities. Buyers will certainly appreciate the effort, especially if they’ve been chasing their tails trying to find the purr-fect new home! Read the full story.
Owners told to pull down their buildings or face jail
Condo owners in one development in Edmonton face the prospect of heavy fines or up to six months in jail if they fail to comply with a city order. The owners of the Penhorwood condos were evacuated in 2011 due to safety concerns but were then allowed back. The city then issued a demolition order on the buildings, something the residents said they could not afford to comply with. As legal action from the residents seeks to cover costs and compensation, this latest demand from city officials could cost each resident $100,000 or a jail term. Read the full story.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Crescent Valley, Germantown, Murray, Saint-Ulric, Mindemoya