Economy 
There are currently 17 blog entries related to this category.
2012 - Calgary Real Estate Board Market Prediction
CREB releases their market prediction in every January. If you are in the market to buy or sell your property in 2012, this report just may be the most important research document for you to base your decision on.
2011 had certainly showed some improvements to the market by single-family home sales increasing 9.06 per cent. However, if compared to the ten year average, it is still lagging about 17 per cent from where our transaction volumes should be at.
There is definitely more optimism on the streets of Calgary, especially when oil is over $100 a barrel and many oil companies are once again finding it a challenge to fill professional positions to keep up with demand.
Housing prices have been very stable in Calgary for the past several years and we are…
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1% for the tenth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.
Uncertainty around the global economic outlook has increased. The recession in Europe is worse than they anticipated.
US growth was slightly more robust than anticipated however the European crisis is expected to weigh on US growth.
Canadian dollar is still strong and the weaker external outlook is expected to dampen GDP growth in Canada.
Federal Election and Calgary Real Estate
There’s nothing better than a good federal debate. Well actually, that’s not true. Having a government be able to do its job without being having to be sidetracked by numerous costly elections, well that surpasses the greatness of watching prime-minister-wannabes duke it out on live TV. As I was watching the debates last night---wondering what must have happened to Mr. Ignatieff in his childhood that turned him into such an angry individual---I considered what we have lost by being forced into this 300 million dollar-election. Of course the first such thing that came to mind was the grinding halt which befell Realtors’ federal lobbying efforts, among many other things. But you’re not here to read about the other things, you’re here to read about real…
Bank of Canada increases rate
The Bank of Canada increased their key lending rate by 0.25% to 1%. Banks therefore are expected to raise their prime rates to 3%.
The Bank of Canada said consumption growth is expected to remain solid and business investment to rise strongly.
The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected. "Financial conditions in Canada have tightened modestly but remain exceptionally stimulated."
Variable Interest Rates are Heading Up - The first time in many years!
The Bank of Canada increased their key lending rate by 0.25 percent to 0.5 percent. This is the first time they raised rates in nearly 3 years. Banks therefore are expected to raise their prime rates to 2.50%.
The Bank of Canada's key lending rate held strong at 0.25% for 13 months, since April 2009.
The Bank of Canada increased their rate to re-establish normal functioning of the overnight market.
"The spillover into Canada from events in Europe has been limited to a modest fall in commodity prices and some tightening of financial conditions."
"Acitvity in Canada is unfolding largely as expected. The economy grew by a robust 6.1% in the first quarter, led by housing and consumer spending. Employment growth has resumed."
"CPI inflation has been in line…
Canadian Economic Recovery: Heads in the Sand?
With the way that Canadians are spending at present, you would never know that we have been having—and will be having repercussions from—a recession for years to come. While Americans are having to learn new frugal habits, Canadians seem to be back to their old spending habits. However, we would benefit from continuing a more cautious method of spending so that we can better make it through the economic recovery that needs to take place. While it is true that our recession has been a lot less severe than the one that the Americans have been experiencing, our recession has still been affecting most Canadians in some way.
It seems that when the recession first hit, Canadians exercised cautionary spending for a mere few months but very quickly returned to…
Is Calgary Heading for Another Real Estate Correction?
The Bank of Canada warned in late 2009 up to 10 per cent of Canadian homeowners might be in danger of losing their homes when interest rates started to rise from today's historic lows.
Is Canada heading down the same path as our neighbours to the south? Are we looking at a mortgage meltdown somewhere down the road? The answer from mortgage lenders and brokers is short and unequivocal: No.
A very small percentage of borrowers might be in danger, they say. But these are likely people who borrowed at rock bottom rates in the 18 months leading up to the start of the global recession in 2008.
"Two years ago, lenders were much more liberal when it came to qualifying people for mortgages," says Paul Grewal, president of lender Street Capital Financial Corp. "Then…
Interest Rates Stay The Same!
The Bank of Canada announced today that it will hold its rate at 1/2 percent. Banks therefore are expected to keep their prime rates at 2.25%.
The Bank of Canada inflation worries have subsided somewhat. The Bank now says Canadian inflation risks "are roughly balanced."
The Bank of Canada has mentioned again the fact that high domestic demand and ongoing financial stimulus is spurring on the Canadian recovery. That being said, the level of economic activity at 5% annualized growth is a little higher than their projections from their January Report.
The Bank of Canada has mentioned that a higher than desired Canadian dollar as well as absolute low levels of US demand for Canadian products are acting as a significant drag on our economy. As a…
Interest Rates Remain the Same!
The Bank of Canada won't raise interest rates to cool the country's hot housing market, a spokesman said Monday, preferring to leave any tinkering to the country's Finance Minister.
“Some observers – those who see a housing bubble forming – have said that since low interest rates have stimulated housing market activity, the Bank should now raise interest rates to dampen that activity,” deputy governor Timothy Lane wrote in a speech delivered by an adviser on his behalf in Edmonton. “But that poses a problem.”
Existing-home sales are up 73 per cent year-over-year, while prices have climbed nearly 20 per cent as buyers take advantage of historically low interest rates to finance purchases.
Those who fear a bubble worry that many people are…
How does Dubai’s Debt Impact Calgary Real Estate?
Here we go again! Better hang on to what you’ve got because another financial correction of our not quite yet recovered economy is coming. Is it?
For many years during the real estate boom, Dubai seemed as a paradise with an indoor ski arena in the middle of the desert and skyscrapers reaching above sand storms or magical islands erupting from the middle of the ocean with dream like real estate on them.
Now that the storm started to settle a little bit, the bills are coming in and it’s creating some deer in the headlight feeling form many investors because it’s time to pay.
Right now there are more questions than answers at this point. But here is a snapshot of what the big fuss is all about. Dubai currently has an outstanding debt…
The information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The Terms of Use Agreement shall not impose a financial obligation on the Registrant or create any representation agreement between the Registrant and the Participant.
All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.
Disclaimer: Information herein deemed reliable but not guaranteed by the CREB and EREB.
Last updated on: 2012-02-10 00:18:44
Blog Menu
Archives
My Account
-
- Working with Joe to sell our home was an excellent experience. His knowledge in correctly pricing our home and the professional media presentation on his website resulted in the rapid sale. Painless and precise.
- Tyler Macombe & Krisztina Szalay
