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.

The Real Estate Roundup - November 10, 2011

Housing Coalition Formed to Increase Affordable Rentals in BC

A BC Coalition of industry, non-profit and government leaders has been formed to address the growing concern of affordable rental housing in the GVA. The Coalition signed a Canadian Rental Housing Charter outlining a nine-point plan to increase the supply of affordable rental housing across Canada.

Coalition Co-Chair and Metro Vancouver Housing Committee Chair Wayne Wright said, "The Coalition calls on all levels of government, the private sector and the non-profit sector to work collaboratively to address the critical supply shortage of affordable rental housing."

More details including The Canadian Rental Housing Coalition Founding members can be found in the media release.

CAAMP Releases "Annual State of the Residential Mortgage Market in Canada: 2011"

The Canadian Association of Accredited Mortgage Professionals (CAAMP) released its State of the Residential Mortgage Market in Canada for 2011 this week. The annual report uses data from over 2,000 Canadians and analyzes consumer responses to topical questions, consumer choices & satisfaction and outlook for residential mortgage lending.

Some interesting points from the report:

• Many Canadians believe that other people have taken on too much debt or have bought homes for which they are unprepared, yet very few felt they personally had done this.
• Data on mortgage arrears indicates that there are very few Canadians who are not meeting their mortgage obligations, and estimates also indicate that a vast majority of Canadian mortgage borrowers are well-positioned to deal with potential increases in mortgage rates.
• Most Canadians feel that "Real Estate investing in Canada is a good long-term investment"
• Most Canadians consider their mortgages "good debt."

You can view the entire report here.

TOP BC Investment Towns for 2012-2016

The Real Estate Investment Network (REIN) released its latest report on the top cities and towns of British Columbia for real estate investment. The report looks at factors such as population growth compared to provincial average, infrastructures being built, new jobs being created, political leadership and major transportation. The top 10 are:

1. Surrey
2. Maple Ridge & Pitt Meadows
3. Kamloops
4. Abbotsford
5. Fort St. John
6. Dawson Creek
7. Kelowna
8. Comox Valley
9. Penticton
10. Prince George

It is of note that Vancouver narrowly missed the top 10, coming in at #11.