Government to reduce exposure to housing market; but doesn’t know how
Reducing the federal government’s exposure to risk from the housing market is a long term aim of finance minister Joe Oliver, but so far there’s no plan to do it. Concerns have been raised by organisations such as the International Monetary Fund which believes that exposure to the market, especially through the CMHC, is a risk to the government and wants Ottawa to pass more responsibility onto the private sector. Speaking to the media yesterday, Oliver stated that there is not going to be any change in the short term.
Conference Board report predicts strong growth for 4 provinces
Ontario, Newfoundland and Labrador, Alberta, and Manitoba will be the leaders of economic growth in 2015 according to a new report from the Conference Board of Canada. Exports and investment will increase and for Ontario it will mean a return to form after a sluggish start to this year, although it did recover in the spring. The overall expectation for the economy is growth of 2.2 per cent this year and 2.6 per cent for 2015. Newfoundland and Labrador are expected to see the biggest growth, rising 3.4 per cent next year.
BoC urged to hold interest rate
The Bank of Canada will announce its latest interest rate decision on Monday and is being urged not to change it from the current low. The CD Howe Institute’s monetary policy council voted unanimously that the rate should be held at 1 per cent this month and next but there is some disagreement over the medium term. Two of the 11 members of the committee say that there should be a rise to 1.25 per cent in may next year.
Calgary breaks price records again
A record number of homes priced over $1 million have been sold this month. Mike Fotiou of First Place Realty has told the Calgary Herald
that there have been 51 luxury home sales in November. Last year a record 726 homes sold for more than $1 million, so far this year that has been smashed with 799 sales.
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