Report warns of mass mortgage default
A new report suggests that British Columbia could see a mass default on mortgages if there was a widespread crash in house prices. The BC Financial Institutions Commission report was sent to credit unions last week and warned that: "Default risk is of particular concern given the continuously climbing housing price in the Greater Vancouver area
.” The report highlights that it is not responding to a specific concern about the current market and it does not aim to predict what may happen to the housing sector, but with a growing number of people having arranged loans through credit unions it is flagging up the risk to those lenders. Read the full report.
RBC predicts housing market will be “buoyant” with regional diversity, 2016 will be slower
The housing market will continue to be “buoyant” throughout this year, but with “significant diversity” across regional markets. That’s the latest forecast from RBC Economics, which published its economic outlook yesterday. With accelerating growth in the economy in Ontario, B.C., Manitoba and Quebec, the report expects markets to benefit. However, in Alberta, Saskatchewan and parts of Atlantic Canada, it expects activity to weaken. Nationally the report calls for 1.7 per cent growth in resale sales and prices gaining by 3.4 per cent. RBC Economics is predicting resale activity in 2016 “to weaken across the board and prices to edge lower as increasing interest rates damage affordability".
Household debt edges higher again
The level of household debt in Canada rose to 163.3 per cent of disposable income in the fourth quarter of 2014. Statistics Canada’s figures mean the debt-to-income ratio hit new highs. However, the picture is not as bleak as it sounds because, although household income didn’t keep up with borrowing, assets increased in value. With yesterday’s Teranet-National Bank report showing some house prices starting to cool
, analysts said this will help to reduce the overall burden of debt held by Canada’s households.
So what do you get for $51 million in Vancouver these days?
mansion has sold for an eye-watering $51 million. The home in Point Grey comes with plenty of space, sitting on 1.09 hectares that had previously been three separate plots. CBC reported that the mansion was sold last December by the CEO of gaming company Zynga and was bought by a Chinese businessman. Real estate agent Malcolm Hasman listed the property. Along with its oversized plot, the 25,000 square foot home comes with a tennis court, movie theatre, separate guest house and a 10-car underground garage.
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