Yesterday’s BoC report comes with some concerns… Saskatchewan realtors have optimism for the province… Sleepy town grows into popular city… and $26 million buys you a house to teardown…
BoC still concerned about high property prices
Yesterday’s report from the Bank of Canada was a mix of good news and bad; serial disappointment in the economy offset by good news for homeowners with the frozen interest rate. The report said that the Bank is still confident of a soft landing for the housing market but as usual, there was a warning for homeowners too. The high level of household debt and sky high property prices will continue to leave individuals, and the wider economy, vulnerable to any sudden downturns or rate rises.
Saskatchewan realtors not expecting a correction
The warnings of a market correction keep bubbling away but in Saskatchewan realtors are optimistic. The Chief executive of the Association of Saskatchewan Realtors says he’s not expecting any significant corrections in the region, noting that most of the over-valuation of property (as cited by Fitch and Morningstar this week) is in Toronto, Vancouver and Calgary. Bill Madder says that if things stay buoyant in the local economy, the housing market will be stable. He says that people can afford property in the area and assuming there are no sudden rises in unemployment, he is optimistic that the market will hold up. Read the full story.
Warman no longer sleeping
city is shaking off its image as a sleepy rural town as the population and investment grow. With the number of home starts among the highest in the province and vibrant commercial construction projects, Warman is fast gaining popularity. The aim is to make the city a self-sustaining community with all the jobs, shops and leisure facilities it needs and it is well on the way to achieving its goal. When comparing property with other cities in the province it may be too late to get a bargain price, but value is another matter. While the average price in Warman is $410,000 – about $60,000 more than Saskatoon – your dollars will normally get you a lot more property. With large investments being made in infrastructure, including $5 million for road improvements, the city is set for continued growth in prosperity in what is a highly competitive province. Read the full story.
For almost $26 million you’d expect to be able to live there?
A Vancouver property has raised a few eyebrows. The price may not be the most shocking aspect of the listing - $25.8 million is less than half the price of the area’s most expensive property – it’s the condition. While the ocean view is fantastic, highlighted by its repeated mentions in the listing, the property itself will almost certainly be demolished by new owners as it’s currently boarded up and in poor shape. Clearly whoever the eventual buyer is, they will need vision, lots of cash and to not be desperate to move in to a new home straight away. Read the full story.