Wednesday, 23 November 2011

The Real-Estate Round Up - November 24, 2011

Bank of Canada holds key interest rate at 1%

In a move that surprised no one, Bank of Canada Governor Mark Carney announced it will be keeping its interest rate at 1%, likely for the foreseeable future.

It wasn't all that long ago when Carney was hinting at possible rate hikes which likely would have already been implemented, but the US recovery stalled and the Euro Debt Crisis worsened. Carney called that situation "barely contained."

2011 GTA Condo Sales Break Previous Record

The Building Industry & Land Development Association (BILD) announced that the 23,747 condo sales in the GTA through the first 10 months of 2011 has broken the previous record high of 22,316 in 2007. Quite the feet considering there is still 2 months of sales to go.

High-rise sales have accounted for 61% of the sales, compared to 57% to this time last year. Joe Vaccaro, Acting President of BILD commented, "Ten years ago the split was 25% high-rise vs. 75% low0rise."

It would appear Toronto is "growing up."

NDP Leader Slams Liberals for Not Clarifying HST Transition

Adrian Dix is slamming the BC government for not transitioning back to the PST system immediately, or at very least clarifying the rules on the transition back to the old taxing system.

Dix wasn't the only one, as NDP Housing Critic Shane Simpson added "The Urban Development Institute, the Canadian Home Builders Association and the BC Real Estate Association have all said it's hurting their industries. The industry is looking for certainty and clear rules on the transition back to the PST."

Finance Minister Kevin Falcon admitted that the transition back is more difficult than he anticipated. "The PST is a stupid, inefficient tax. The issues associated with it are much more complex than I honestly could have ever imagined."

It doesn't appear as if there will be an answer for the situation anytime soon.
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