BMO predicts house price correction in Toronto and Vancouver but not Calgary
BMO’s latest housing outlook is predicting a drop in prices in Toronto and Montreal…but not yet. Senior economist Sal Guatieri says in a North American economic outlook that two of the hottest property markets will see “some correction” when interest rates rise. He isn’t predicting the decline to be more than moderate although has stopped short of putting a percentage on it. Interestingly, the report says that Calgary will not be affected by interest rate rises in the same way, due to rising population, strong economy and relatively affordable prices. A separate forecast from BMO suggests that both home sales and prices will be five per cent higher by the end of this year.
Alberta economy may soften next year but no crisis
Experts are predicting that there will be a softening of the economy in Calgary and throughout Alberta next year but are not predicting a crisis. Speakers at the Calgary Economic Development’s 2015 Economic Outlook used words like ‘moderation’ to explain their analysis. ATB Financial’s chief economist Todd Hirsch said that he sees nothing on the horizon that would be a ‘bust’ but the economy would "pullback" maybe by half of a percentage point. Glen Hodgson of the Conference Board of Canada agreed, saying that although lower oil prices are tough for the energy sector, the province is still the fastest growing in Canada and he "wouldn’t be worried at all" about the economy. Speaking of the housing market, Hodgson says the Conference Board has no real evidence of a bubble, except perhaps in high-end condos in some areas. Read the full story.
Business organization slams property tax disparity
The Canadian Federation of Independent Business says that commercial property owners are paying more than their fair share of property taxes. In its comparison of property taxes paid to municipalities in Saskatchewan it found that owners of commercial properties paid on average 2.31 times more last year than residential owners. Those in Prince Albert pay the most -- $4.23 for every dollar from residential owners -- while Martensville has the narrowest gap at $1.48. CFIB’s Marilyn Braun-Pollon says that municipalities don’t have a revenue problem but a spending one and is recommending that they reduce their workforce. Read the full story.
Underground condo development: perfect for a nuclear apocalypse
It’s the perfect home for someone who’s both rich and nervous, or perhaps just very protective of their privacy. A secret location in Kansas houses a new condo development that apparently can survive a nuclear attack! The 'Survival Condos' development includes a swimming pool, movie theatre, shooting range, rock climbing wall and even a holding cell for any unruly residents. In fact, there’s everything to keep 70 people alive for five years. The condos are priced from $1.5 million and developers are already planning to build more in other locations. 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:
Sutherland Lake, Gwynne, Summerstown, Cobalt, Amqui