Daily Market Update

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CHMC decision on second homes not damaging the market
When Canada Housing and Mortgage Corporation announced that they would no longer offer insurance on second homes, some believed it would mean a slowdown in sales of recreational property. However, since the policy was implemented at the end of May, there has been “little, if any” impact on the market, according to Re/Max. The company releases its recreational property report today, which says that they are not expecting to see a big impact from the change. Part of the reason is that many buyers in this market have more than 20 per cent as a down payment or are able to insure the shortfall through commercial alternatives. The report also shows that although sales have been slow recently, and there has clearly been a downturn from pre-recession levels, things are improving well. Young, wealthy buyers are increasingly using profits from their urban property to make additional purchases in vacation spots.  Read the full story.
Too soon to relax says economist
Bank of Nova Scotia economist Derek Holt says that it’s too soon to relax on the housing market, despite improving conditions in the economy. Mr Holt says that as prices rise we should raise our guard to the potential risks. Meanwhile at Capital Economics, David Madani says that it’s still inevitable that there will be downward correction. Three years ago the Capital Economics team were predicting a 25 per cent drop in prices. Most economists believe that any correction will not begin until interest rates rise, but there is still much discussion about how quickly things would change, and to what degree. Read the full story.
Calgary’s eastside set to be hot market for real estate 
After years as an urban wasteland, construction is underway in Calgary’s East Village and its all set to be an area of high demand. The new development will eventually be home to 11,000 and provide an enviable array of retail, leisure and work space. There will be a new culinary hub in the historic Simmons building, a new civic library and there’s even new bridges over the Bow and Elbow rivers. A hotel and National Music Center will be added boosts for the area. Read the full story.
The cut and paste format of mixed-use developments
There will always be those who criticise new developments for their lack of individuality but ultimately it is consumers who dictate the trends. While it may be a valid observation that one new mixed-use development is very similar to the next, certainly in terms of the commercial tenants, this is because it’s what residents want. Not only is it about having familiar, trusted brands in your neighbourhood while you live there, but it also helps with property values. Read the full story.

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