Canada’s housing is 63 per cent over-valued, says Deutsche Bank
There’s always plenty of debate when economists suggest that Canada’s housing is over-valued by 20 per cent so how do you feel about this one? Deutsche Bank has published an overview of some of the world’s real estate markets and says that Canada’s in over-valued by a massive 63 per cent! That’s more than double the figure that the Bank of Canada estimated in December. The bank’s calculations include comparison between median house price and median household income and house prices in relation to rents. The report also takes into consideration the high levels of household debt and the possibility of price correction. Read the full story.
Homes over $1 million surge in Calgary
The number of homes valued at $1 million or above in Calgary
has increased by 39 per cent in a year. Newly released assessment figures show that there are now 14,207 homes in the city at the $1 million or above level, up from 10,227 last year. The growing number is more to do with rising prices of course, rather than an influx of wealthy residents and in fact some of the highest value properties are declining in price. Calgary
has benefitted from high levels of employment and wages above the national average, but the downturn in the energy sector could prompt a slowdown in house prices.
Labrador West ‘bubble has burst’
House prices and rents in Labrador West are tumbling with the decline in the mining sector. The area, known as the iron ore capital of Canada, was booming but in the last few years the price of the mineral has dropped 60 per cent. Landlords and those looking to sell their homes have seen prices fall. Realtor Tammy Elliot told CBC that prices have plummeted 25 per cent in the last few months. She says that, while it’s still possible to sell at a profit, the figures are far lower than those who saw their property values escalate as much as ten times in a decade. Read the full story.
Non-profit housing organisation reports record numbers
A non-profit which helps people in Calgary
who can afford to make mortgage payments but don’t have a large enough downpayment has seen sale numbers surge. Attainable Homes Calgary Corporation makes it possible for qualifying clients to buy a home with as little as $2,000 down and says that in 2014 sales were up by 47 per cent, to 206. The organisation says that, as house prices have grown, more people with moderate incomes have struggled to move from renting into ownership, due to the larger downpayment required. AHCC works with builders to deliver homes at below market levels and expects to help even more families buy their own homes this year.
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