Daily Market Update

Canada needs another 4.5 million homes warns study
A new study says that we will need another 4.5 million homes over the next three decades. The report from Urban Futures points to population growth and increasing life expectancy and shows a marked departure from the predictions that had historically been reported. The generation that followed the baby boomers was smaller in number, leading to forecasts that there would be a meltdown in the housing market as the boomers vacated their homes. However growing families and strong immigration has changed that. Urban Futures says there have been 2.2 million extra occupied homes since 2000, or around 185,000 per year on average and with a large number of seniors living longer and being able to stay in their homes for longer, this figure is edging higher. The study predicts that 82 per cent of those in homes today will still be alive in 2033 and 73 per cent by 2041. With net migration around 1 million it’s easy to see how the figures stack up. What will this mean for investors?
 
Calgary relaxes rules on gated communities
Back in 2001, Calgary talked about banning gated enclaves in the city and in 2007 there was a clear statement in the land-use by-laws that gates across condominium driveways were not allowed. However, last week, Calgary Planning Commission voted 5-3 in favour of allowing a gated community at Mahogany, a new southeast lake development. It will be the sixth gated development in the city, but the only one to have been approved since 2001 and developers Hopewell are planning to apply for more. Among the opponents to the whole concept is councillor Druh Farrell, who has told the Calgary Herald that a gated community “doesn’t fit with Calgary values” but those in favour say there is little difference between a gate and a concierge desk in a condo tower. Read the full story.
 
Lenders face challenges in 2015 despite $31.7 billion profits
Canada’s five largest banks have collectively made profits of $31.7 billion in the past year, up $2 billion from the year before but they are warning of challenging times ahead. The issues facing the energy sector together with global economic woes and the high level of consumer debt are all likely to weigh heavily on the banks in 2015. Analysts say that concern over household debt and the economy, especially given the latest GDP and jobs data, is likely to see a downturn in some lending next year although home loans are still expected to see growth. Read the full story.
 

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