Thursday, 15 December 2011

Real Estate Roundup - December 15, 2011

TD Chief Executive Officer Recommends Stricter Mortgage Rules

Ed Clark, CEO of Toronto-Dominion Bank said this week in an interview that tightening existing mortgage rules would be a good idea to "slow" the rising household debt while avoiding triggering an all out crash.

"I think the government will pause here and not do any tweaks, because they're hoping that the housing market is slowing down on its own but not collapsing and they don't want to push it over and make it go down rapidly," Mr Clark told the Globe and Mail. "It's hard to know whether the economy can take another crank, but my own gut would tell me that it may turn out that we do have the absorption capacity."

Alberta Bucks National Trends, Unemployment Drops

Statistics Canada announced that during the past 12 months, employment across Alberta climbed faster than any other province; 97,100 jobs were created at a growth rate of almost 5% since November 2010.

Stante, President of the Calgary Real Estate Board is optimistic that the high job growth will continue to fuel the housing market. "The strength in our economy, combined with affordability levels that outperform most major centres, will continue to attract migrants to the city and spur further growth in our housing market."

November BC Home Sales Hold Steady: BCREA

The British Columbia Real Estate Association (BCREA) reported this week that unit sales in BC remained unchanged in November compared with last year. 5,640 units were sold last month compared to 5,647 in November 2010.

"After waning during the first half of the year, consumer demand has steadily increased since the summer months, bringing home sales within seven units of the November 2010 level," said Cameron Muir, BCREA Chief Economist. "Low Mortgage interest rates remain a key driver in the housing market, helping to maintain affordability and purchasing power."
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