BoC official warns that government is overexposed to housing market
A senior official from the Bank of Canada is warning that the government is overexposed to the housing market. Deputy Governor Lawrence Schembri notes that the market is currently secure with the forecast for more balance when interest rates increase; but he says a sharp rise in unemployment or other economic shock could be costly for the government, especially with the level of risk carried by CMHC. Schembri says that things have to change with high levels of consumer debt being a major worry, and he has repeated calls for the private sector to take on a greater proportion of the risk. Read the full story.
Toronto prices still climbing
October’s average home sale price was up 9 per cent on a year earlier in Toronto according to figures from local real estate board. The average price paid was $587,505 with a shortage of low-rise homes driving the hot sellers’ market. Detached home sales were up 10 per cent on a year before with prices increasing 8.7 per cent; condo sales were up 6.8 per cent with prices rising 2.5 per cent. Listings were up although active listings were lower. Read the full story.
National Bank economist says housing market is a concern
National Bank economist Marc Pinsonneault says that we should be concerned about the housing market but not the much-talked-about heat in Toronto and Vancouver. He says that in areas such as Montreal the problem could be over-supply of properties with the level of unabsorbed homes higher than over the past year or two. Winnipeg, Saskatoon and Regina are in a similar situation. Read the full story.
Mixed use is the future
PricewaterhouseCoopers and the Urban Land Institute say that mixed use is the future of real estate. The Emerging Trends in Real Estate
report forecasts that 2015 will see a greater focus on creative solutions to city living. As more people are choosing to live near the city core but also wanting convenience for grocery shopping and other amenities developers will be looking to provide what the modern city-dweller demands. The demand for larger family-size condos will also continue and there will be new solutions for housing for seniors. Read the full story.
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