Consumer confidence falls on economic concerns
Last week the Bloomberg Nanos Consumer Confidence Index was higher with job security and the housing market both showing optimism. This week’s figures though reveal that the confidence was short-lived. Those surveyed felt that the economy was not looking as positive, especially with the surprise trade deficit reported on Friday. Confidence in job security is also down on the previous figures. However, when asked about real estate the percentage of respondents who expected price increases in the next six months, was higher. Read the full story.
Airdrie sets annual sales record…with three months to go
The small city of Airdrie north of Calgary has beaten its previous annual record for MLS home sales. According to realtor Mike Fotiou there have been 1,354 sales this year to the end of September, which is more than the record set in 2007 of 1,327. In the whole of last year there were 1,321 MLS sales. Monthly sales for September were also record breaking with 140 transactions; 26.13 per cent higher than the same month last year. The average sale price was up 8.67 per cent on a year ago at $393,209. Prices that are almost $100,000 lower than the Calgary average makes Airdrie highly attractive to commuters; although there are a growing number of businesses in the city. If growth continues in Airdrie at the current rate, the city would appear a worthwhile consideration for investors too. Read the full story.
What can we learn from Australia on data?
Low interest rates and an overheated housing market but this time it’s not Canada. The situation in Australia is not dissimilar to our own and now financial authorities there are to take measures to curb the heat. The big difference is that they are doing so with the benefit of far more official housing data. In the current situation Australia’s central bank was able to highlight the issue of higher investor activity due to accurate figures, both nationally and for the regions. Although a recent survey by the Canada Mortgage and Housing Corporation gave a snapshot of the investment element of the housing market, it was never going to be as accurate as regular rolling data collated from lenders. Read the full story.
Former Fed Reserve chair refused refinance of mortgage
It doesn’t matter if you are the former Fed chair, you can still be turned down for a refinanced mortgage. Ben Bernanke told a conference recently that he had been unable to secure a deal on his Washington DC property. Bernanke said that maybe lenders had gone too far on mortgage credit conditions. He has refinanced twice in the past, both times when he was still at the Fed. Although he reportedly makes a six-figure income from speaking engagements and has a job at an economic think-tank he is clearly not considered a good enough risk by the lending criteria implemented during his time at the Fed. Read the full story.