Canada’s least affordable city is…
A new quarterly report from Desjardins says that Vancouver is Canada’s least affordable market currently, due to house prices relative to income. Overall the ability of Canadians to afford property has dipped slightly the poll reveals, but there are a number of different stories. In Quebec for example, prices have stagnated but income has grown, making it more affordable than previously. Ontario has some affordable areas but Toronto isn’t one of them and of course in Alberta there are some areas that are far more affordable than Calgary. See the full report.
Calgary market stays hot
House prices went up again in Calgary last month; rising 10 per cent compared to October last year. New figures from Calgary Real Estate Board show that there were 2,147 resales with condos continuing to be the biggest driver with a 14 per cent increase year-over-year. “Tight rental market conditions combined with low mortgage rates have supported demand growth for condominium product in Calgary,” said CREB president Bill Kirk, noting apartment sales have also set a year-to-date record, totalling 4,202 units. “Much of this demand is coming from both first-time homebuyers and investors.” The heat in the condo market isn’t down to low supply either; listings were up 30 per cent year-over-year and there was a net increase in inventory. Single-family units also saw high growth with a 9.7 per cent rise on a year earlier. Prices are also still trending higher with year-over-year increases approaching 10 per cent across all property types.
What’s the biggest home-buying priority for Vancouverites?
It’s perhaps not too surprising that house prices rank highly when purchasers in Vancouver are choosing where to live along with other factors such as proximity to work and family. However a new poll by Angus Reid does provide some interesting insights into the decisions and concerns of Vancouverites. The vast majority for example say that people born in the city are being priced out and a large number have considered moving to a more affordable area. Many say they have had to give up a lot in order to live where they want. On the plus side Vancouver scores highly as a place to raise children and most areas of the city rank well in terms of safety. See all the results.
Poloz: Interest rate rises to combat hot property market is a bad idea
The governor of the Bank of Canada said today that it would not be a good idea to raise interest rates in a bid to tackle imbalances in certain sectors of the economy such as property. Stephen Poloz said that such measures would hurt other sectors including auto manufacturers and construction and would hit confidence in the economy. Speaking in Toronto the governor said that the Bank’s focus is achieving its 2 per cent inflation goal. He highlighted spare capacity in the economy such as exports and the labor market.
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:
Lucky Lake, Hartney, Haute Aboujagane / Haute-Aboujagne, Sayward, Mattice