Interest Rates – A Cut Is ‘More Likely’
The Bank of Canada will almost certainly keep interest rates at 1% again tomorrow and most experts believe that a rise is still a year or so away, but some are suggesting the central bank may have to cut rates first. David Madini of Capital Economics in Toronto says that although there are positive noises being made about the economy, they are largely predictions for the future. Mr Madini says that, although it is not the most likely scenario , if the economy doesn’t improve in the coming months, the Bank may be forced to change direction and cut rates. Read the full story.
Canada’s Housing 10% Overvalued
Canada’s second largest bank says the housing market is overvalued to the tune of 10%. Toronto-Dominion’s chief risk officer, Lisa Reikman, said yesterday that the biggest problem is the overbuilding of condo developments and who’s actually buying them; whether it’s people who want to live in them or investors. Ms Reikman says that although TD and the other banks are keeping a close watch on the market, there doesn’t appear to be any major risk of a collapse. Read the full story.
Calgary Resales Smash Records
May was a bumper month for re-sales in Calgary, according to local realtors. With high prices, you would expect records to broken on value alone, but there was also increased activity at either record, or near record levels. MLS sales were up over 16% year on year and a record was set for luxury properties, with 96 ‘over $1m’ properties sold in May. Demand for housing in Calgary continues to be high. Read the full story.
Time for Standard Condo Rules?
The rules and regulations surrounding condo developments can vary wildly, not just from province to province or city to city but even from one development to another. The Condominium Owners of Nova Scotia Association wants bylaws to be standardized “to add consistency to the sale and purchase of condominiums.” With a review of the Condominium Act in Nova Scotia, now would seem to be a good time for owners to have their say and the Association are holding a public meeting for condo owners to do that. Read the full story.
Buying for Investment
Property is still seen as a good investment and with pensions underperforming for many, real estate can offer a good return. Mark Weisleder is a Toronto real estate lawyer and says there are pros and cons of entering the market for investment purposes, and offers tips for taking the leap. Mark’s advice includes using a good local realtor who is an investor themselves, making sure the property will give you enough yield to pay all the associated costs and of course, consulting with a mortgage broker. Read the full story.