Category: Economic
Protect Yourself from the Global Real Estate Bubble
With our country’s real estate boom approaching the 15-year mark in some areas, it’s understandable that doom-and-gloom stories are going to make an appearance in the media. When numerous housing markets across the world are experiencing similar good fortune, it’s not a surprise that talk of a global housing bubble is going to emerge.
Real Estate Boom or Bust?
If it feels like this real estate upswing has gone on forever, that’s because it has. Well, almost. A recent report by Bank of Nova Scotia reveals that Canada’s housing boom is one of the longest in the Western world, sitting at 13 years. In that time, the average house has increased in value by 85%. [...]
Fort McMurray Set to Double in Next 20 Years
The Regional Municipality of Wood Buffalo (most commonly known for Fort McMurray) is an exciting place to be. Located in Northern Alberta, this economic engine is one of the fastest growing regions in Canada and has a diverse population of more than 104,000. The Fort McMurray region has abundant natural resources, a rich heritage and [...]
Alberta Real Estate Market Heading Up in 2012
Alberta housing starts are expected to increase by 15% in 2012 to 29,200 which is the highest level since the peak in 2007. At the same time, MLS resale home are expected to increase by nearly 6% this year and another 2% to nearly 53,900 units next year.
Factors influencing this forecast are a strong domestic economy and immigration at a level that is 40% higher than the past 20 year average. Not to mention mortgage rates at an all time low.
Prime Rate to Drop by July: Economists
Economists from several financial institutions including Bank of America-Merrill Lynch, Capital Economics and ING Financial Markets are predicting a 0.25% rate cut in Canada by July 2012 according to a November 2011 Reuters survey. Overnight index swaps have for some time been pricing in the 25 basis point drop.
Calgary may see 10% price increases in 2013
One opinion is that Real Estate prices will increase in the Calgary market in 2013 by as much as 10%. That is according to the president of the Real Estate Investment Network in Canada. Read this article for more details.
Could Prime Go Down? Probably!
With growth expectations for Canada in 2012 now reduced there is an increased likelihood of further economic stimulus by both the Bank of Canada and the Federal Government. Don’t be too surprised to see Prime rate drop a few notches in the coming months.
Alberta the only Province with Housing Start Increase
Alberta is the only province in Canada expected to see an increase in housing starts next year. Alberta has seen job conditions and inter-provincial migration rise dramatically at the expense of both Ontario and British Columbia. Increase in-migration has an upward affect on housing demand which we will see next year.
Calgary is Canada’s Economic Hot-Spot
Calgary is quick becoming the new economic hotspot in Canada. While other provinces, specifically Ontario, Saskatchewan and BC have recently had larger spikes in residential housing prices, it certainly seems that Calgary is on the verge of big growth again. A dramatic reduction in downtown office space points to large job creation in our region which normally translates to increased housing demand.
No More Morgage Rule Tightening
Last week Canadian Finance Minister Jim Flaherty dismissed speculation about a Canadian housing bubble, telling reporters in New York on Wednesday that there is no reason to further tighten the Canadian mortgage rules.
