More Fed cuts expected to push Canadian interest rates lower

[CBC News - September 19, 2019] Watch for effects of shrinking global economy to hit Canada as well A weakening global economy and continued trade fears — and emphatically, he said, not angry words from U.S. President Donald Trump — convinced U.S. Federal Reserve chair Jerome Powell to cut interest rates on Wednesday for the second time this summer. And for Canadians waiting for lower rates, those same global forces are on their way, and will likely force Bank of Canada Governor Stephen Poloz to follow suit. Despite the fact that the quarter [...]

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Metro Vancouver housing market no longer ‘vulnerable’ but Victoria still at risk: CMHC

[August 5, 2019 - BIV] Metro Vancouver’s housing market has received a “moderate degree of vulnerability” rating, after three years of “high degree of vulnerability” ratings, from the Canada Mortgage and Housing Corp. (CMHC). CMHC’s HMA examines urban real estate markets across Canada, assessing a combination of four key risk factors: overvaluation of house prices in comparison with levels that can be supported by economic fundamentals; overheating, when demand for homes in the region outpaces supply; sustained acceleration in house prices; [...]

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B.C. Real Estate Association forecasts lower mortgage rates in 2019

[Source: Georgia Straight - March 28, 2019] That's according to the latest mortgage rate forecast from the B.C. Real Estate Association. The cost of borrowing for a home is predicted to get a little cheaper this year. "The average contract rate for 5-year mortgages has declined about 30 basis points from its peak in 2018, reaching 3.44 per cent in March," the BCREA states in a two-page report. "Unfortunately, this still means a stress test rate of 5.44 per cent, even for [...]

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First-time home buyers big winners in budget, but will incentives work in B.C.?

[Vancouver Sun - March 19, 2019] The federal budget offers incentives aimed at making housing more affordable for first-time buyers, but it remains to be seen whether they’ll work in the overheated B.C. housing market. “We’ll want to look at the details, we’ll want to take a look at whether it will assist people in communities where unaffordability really is a crisis and housing prices are very high,” said B.C. Finance Minister Carole James. “I think that will continue to be a challenge.” The [...]

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Metro Vancouver real estate not alone as prices slide across prime global cities

London, Sydney, Hong Kong and more seeing price declines over past year, reports The Economist – a correlation that could herald a global recession [Vancouver Courier - March 8, 2019] It’s easy to think of Metro Vancouver real estate prices as being particularly hard-hit in the past couple of years, by a combination of provincial taxation measures and the federal stress test. But a report published this week by The Economist shows that, in global terms, we are far from alone in seeing [...]

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Economy added 55,900 jobs in February: StatCan

[CTV News - March 8, 2019] OTTAWA -- The labour market generated a second straight month of strong job gains in February with the creation of 55,900 net new positions, all of which were full time, Statistics Canada said Friday. The surge followed an even bigger gain of 66,800 positions in January. The back-to-back results gave Canada its strongest two-month stretch of job creation since the spring of 2012 -- and its best two-month start to a year since 1981. The unemployment rate [...]

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Uneasy Year of the Pig arrives for China – dependant BC companies

[BIV - February 4, 2019] Chinese New Year dawns on a jittery business landscape as Huawei dispute casts uncertainty over access to overseas markets. Not only is Chinese New Year one of the local community’s most celebrated holidays, it is also typically the time for B.C. businesses – especially those with ties to the Chinese market – to celebrate a year of gains while looking optimistically at the potential of more in the coming year. 2019, however, is not a typical year. [...]

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Metro Vancouver home prices to bottom in 2019 and then bounce back: forecast

[BIV - January 21, 2019] Home prices in Metro Vancouver may slide further in 2019 but then will recover as demand continues and supply remains constrained, according to a panel of developers at a 2019 forecast event. Speaking at the Urban Development Institute’s annual Forecast Luncheon on January 17, Neil Chrystal, president and CEO of Polygon Homes, said, “This year, the single-family home market will remain slow, and experience further price corrections…. In order for prices in the multi-family market to stabilize, [...]

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Modest Home Price Growth Forecasted for 2019

[The Province - December 12, 2018] TORONTO — Home prices across the country are expected to rise in 2019, but only at a moderate pace compared with recent years, according to two of Canada’s largest residential real estate brokerages. Royal LePage is anticipating the national median home price will increase by 1.2 per cent in 2019, with prices in Toronto and the surrounding areas expected to rise 1.3 per cent to $854,552. Home prices in Greater Vancouver are forecast to go up [...]

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Canadian borrowers will feel this week’s U.S. interest rate hike

[CBC News - September 24, 2018] The world's biggest central bank is expected to raise rates this week — and then keep raising them. With two eyes on the future, U.S. Federal Reserve chair Jerome Powell is expected to raise interest rates this week — and then keep raising them to keep inflation under control. (Yuri Gripas/Reuters) Markets are so certain that U.S. Federal Reserve chair Jerome Powell will raise rates this week that a failure to hike would likely have worse consequences for [...]

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