Alberta markets “hammered” in January, says report
A report by the Conference Board of Canada says that the housing markets in Calgary
were “hammered” in January and are buyer’s markets. Senior economist Robin Wiebe reported that the seasonally-adjusted monthly rate of sales in Calgary
fell by 23.9 per cent to 20,100 and in Edmonton
by 9.8 per cent to 15,372. Listings also dropped by 3.9 per cent in Calgary
to 52,944 and by 11.6 per cent in Edmonton
to 35,784. Prices were down to $448,746 in Calgary
, a drop of 2.5 per cent from December. The Conference Board’s short-term forecast for prices in the city is for them to fall. In Edmonton
, prices were $379,743 in January, up 4.2 per cent with the outlook for increases of between zero and 2.9 per cent in the short term.
Interest rate cut less likely after inflation data
Talk of a further cut in interest rates has been fading in recent weeks and yesterday’s inflation figures from Statistics Canada may just kill them off completely. Prices rose by one per cent in January, down from 1.5 per cent in December. The sluggish increase was largely down to gasoline prices, which have fallen nearly 27 per cent in the year to January. Without gas prices, inflation was 2.4 per cent in the year to January. The largest price rises were in food, alcohol and tobacco products. The Bank of Canada will announce their decision on interest rates next Wednesda,y but most economists now agree that a further cut would be very unlikely.
Developer says demand for rentals in Toronto is soaring
Rental apartments are the next boom in Toronto’s housing market
, according to developers and investment funds. As prices have increased and mortgage regulations have tightened there has been an increased demand for rental properties and investors are cashing in. Apartment real estate investment trusts (REITs) are outperforming other REITs on the Toronto Stock Exchange, and Ugo Bizzarri, managing director of portfolio management and investments of Timbercreek, said: “There’s a huge demand for rental.” He told the Financial Post
that developers are starting to build rental property “for the first time in 40 years". Research firm Urbanation revealed that there are 21 planned or under-construction rental apartment developments in the Toronto area, but with vacancy rates lower than two per cent the building still may not keep up with demand. Meanwhile, RealNet Canada said that sale prices of condos have levelled off since their peak in 2011, giving developers more incentive to build rentals where the yield can be higher. Read the full story.
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