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Annual inflation rate accelerates to 2.2%

Canada’s Inflation Rate Higher than Expected

A recent iPOLITICS article reports the annual inflation rate accelerated to 2.2%, which is above the Bank of Canada’s expected target. Stephen Poloz, the Bank of Canada’s governor, stated that despite the three interest rate hikes since last summer he maintained the current rate as the Bank watches the current trade related uncertainties out of the USA.

Read the full article by Andy Blattchford published on Mar 23, 2018

In other news…

Real estate sales are cratering around the GTA. And perhaps all of Ontario.

The tide seems to be turning in the GTA from a seller’s market to a buyer’s market. Some real estate brokers have reported that houses are staying on the market longer. Stubborn sellers, holding out for higher prices, are starting to realize they better take what they can get now rather than less later.

After years of rising prices and a several months of total insanity across Ontario, the housing market seems to be stabilizing. In January 2018 home sales in Canada dropped rapidly by 14.5% compared to the previous month. This was the biggest single-month decline in almost a decade. The drop was mainly caused by actions in the GTA where home sales fell off 26.6%. This drop has been similarly reflected in other communities across Ontario.

Will this downward turn in prices continue into a long term slump or rebound? The experts have their opinions one way or the other. But the fact is prices today are lower and may present a buying opportunity for home buyers that just was not available a few months back.

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5 Things You Need To Know About Canadian Real Estate In 2018

The following article is an excerpt from the Huffington Post Canada. The full article can be viewed Here.

 

01/22/2018 10:08 EST | Updated 01/22/2018 10:27 EST

By Wayne Karl

This year will bring some new challenges and opportunities for housing. Here are five things you need to know about Canadian real estate in 2018.

More local than ever

First, there’s no such thing as a Canadian real estate market. You buy one home on one street in one neighbourhood in one city. This is true now more than ever.

What happens in Canada’s largest and hottest housing markets, Toronto and Vancouver, respectively, is quite different from that in, say, recovering areas such as Calgary and Edmonton.

“Monthly momentum for national home sales activity gained strength late last year, and further expected economic and job growth will buoy sales activity this year despite slightly higher expected interest rates,” Canadian Real Estate Association President Andrew Peck said on January 15 in releasing CREA’s stats for December 2017. “Even so, momentum for home sales differs depending on location and type.”

Indeed, it does.

“While activity remained below year-ago levels in the GTA, the decline there was more than offset by some sizeable year-over-year gains in the Lower Mainland of British Columbia, Vancouver Island, Calgary, Edmonton, Ottawa and Montreal.”

Then there’s prices. The national average price climbed just 0.04 per cent in December from the previous month, but it declined 1.42 per cent in Oakville-Milton, Ont.

Looking at a longer-term trend is also important. Using the same Oakville-Milton example, prices were up 58 per cent in December from five years ago, while in Ottawa they’re up just 12.54 per cent, and in Saskatoon, they’re down 3.18 per cent.

The Stress Test

Continue reading the full Huffington Post article HERE