Bank of Canada Rate Changes

Friday, January 19, 2018Norm Rousseauposted in General

Bank of Canada increases overnight rate target to 1 1/4 per cent
 
OTTAWA – The Bank of Canada today increased its target for the overnight rate to 1 1/4 per cent. The Bank Rate is correspondingly 1 1/2 per cent and the deposit rate is 1 per cent. Recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity. However, uncertainty surrounding the future of the North American Free Trade Agreement (NAFTA) is clouding the economic outlook. Bank

Bank of Canada increases overnight rate target to 1 1/4 per cent
 
OTTAWA – The Bank of Canada today increased its target for the overnight rate to 1 1/4 per cent. The Bank Rate is correspondingly 1 1/2 per cent and the deposit rate is 1 per cent. Recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity. However, uncertainty surrounding the future of the North American Free Trade Agreement (NAFTA) is clouding the economic outlook.

HOUSING MARKET FACTS 2017

Friday, January 5, 2018Norm Rousseauposted in CREB Market Statistics

• Detached sales totaled 11,831 in 2017. This is 5.6 per cent above last year, but nine per cent below the long-term average. Sales improved across all districts except the North East, which recorded a decline of sales of two per cent. Strongest sale growth occurred in the City Centre, West and South areas of the city. house-graphthumb

• The average annual detached benchmark price eased across all districts in the fourth quarter compared to third quarter results, but remained higher than last year’s levels in most districts. This is primarily caused by inventories that were higher than sales activity. Annual total residential prices remain below peak levels in all districts.

• Elevated inventories compared to sales weighed on apartment prices across all districts. Annual price declines ranged from a high of 6.2 in the East to a low of 2.4 per cent in the West. The City Centre, West and South districts contain over 70 per cent of apartment sales. Each of these areas have prices that remain 11.7, 10.7 and 12.5 per cent below previous annual highs.

• The annual semi-detached benchmark price averaged $422,333, four per cent above last year's levels. Row prices totaled $329,200, three per cent below last year. In both cases, prices remain 0.4 and 9 per cent below annual highs.

CREB December 2017 City of Calgary stats

Friday, January 5, 2018Norm Rousseauposted in CREB Market Statistics

Two Sides of the Story December sales activity rises again but so does supply.
Dec. 2017


City of Calgary, January 2, 2018 – Sales activity for all product types improved in December and pushed monthly sales to long-term averages for the second month in a row. However, new listings also rose, keeping inventory elevated compared to typical levels for December. With more supply remaining compared to sales, benchmark prices edged down for the fifth consecutive month.  “Many of the economic indicators continue to post modest improvements, including improving sales. However, demand gains have not outpaced the additional supply coming into the housing market. Capture This is creating some of the bumpiness in terms of price recovery,” said CREB® chief economist Ann-Marie Lurie, who added that prices have stayed comparable to last year. The gap between detached supply to demand closed in the first half of 2017 and supported early price growth. As prices improved, this was perceived as a signal for many who delayed selling their home and caused a late rise in inventory which limited price growth. Overall, the detached benchmark price in 2017 averaged $504,867, 0.63 per cent above last year’s levels. Challenges continue to face the apartment sector, with elevated supply in the resale market. The new home and rental markets weighed on this sector. The excess supply caused average annual benchmark prices to decline by four per cent this year. This is a total annual adjustment of nearly 12 per cent since the start of the recession.  In the attached sector, the first half of the year saw an improvement in sales relative to the inventory levels. This supported stronger price gains in the second and third quarter. However, a late rise in inventory levels took some of the momentum away from price growth. On an annual basis, attached prices totaled $332,325, comparable to last year’s levels. “This year, we saw a rise in the number of consumers willing to purchase in the market with the expectation that the economy had already shifted. There were also many who waited to list their property until prices showed more stability,” said CREB® president David P. Brown. “Those who acted were typically driven by long-term plans that best suit their current lifestyle. We are ending the year with stronger sales in the last quarter, but supply levels are holding back price gains. The year played out as expected with a transition from price declines to general price stability in most sectors of the market.”

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Merry Christmas

Friday, December 22, 2017Norm Rousseauposted in General
Merry


November 2017 marks a rise in sales.

Sunday, December 3, 2017Norm Rousseauposted in CREB Market Statistics

City of Calgary, December 1, 2017

The November housing market was spurred by a rise in sales, particularly in the lower price ranges. Sales totaled 1,411 units in November, an increase of 15 per cent over last year. This is comparable to longer-term averages for the month of November. Improved sales activity occurred in each of the housing segments, with most of the gains occurring in homes priced under $500,000. Inventory“The combination of improved confidence and pending mortgage rule changes have likely contributed to the stronger sales activity this month,” said CREB® chief economist Ann-Marie Lurie. According to Lurie, the last time that sales activity rose to long-term averages for the month was October 2016, when the stress test for high-ratio loans was first announced. “Moving forward, we will continue to monitor shifts in demand as improving economic conditions should help offset the impact to the housing market after the new lending policy comes into force in January,” said Lurie. The largest gains in the detached sector were in the $300,000 - $399,999 price range, while the apartment and attached sectors saw the largest gains among homes priced below $300,000.

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