Calgary MLS for September near record level
New figures from the Calgary Real Estate Board continue the trend of higher sales. No talk of a slowdown in the city as the number of MLS sales increases by 11.93 per cent on a year ago with 2,148. That’s almost a record, just under the 2,197 sales in September 2005. Condos and townhouses led the market due to their relative affordability with sales volumes increasing by almost a third and according to CREB’s chief economist the long term outlook is positive. The average price of homes sold in September was $487,300; up 7.3 per cent year-over-year; while the median was up 5.59 per cent from a year ago at $425,000. One of the key improvements for the month was in sales of single family homes with a 3.48 per cent growth from the same time last year following two months of declines. Read the full story.
PIMCO says Bank of Canada should talk of rate rises
Fund management firm Pacific Investment Management Co. says that the Bank of Canada should revert to talk of higher interest rates to halt the inflating property market. PIMCO’s Ed Devlin says that removing reference to higher rates from official policy statements is fuelling the rising home prices and debt levels. Devlin says that he believes Canada’s property market is overvalued by 10 to 20 per cent but with low interest rates and allowing adjustments for inflation, it could be 30 per cent overvalued with the potential for a large adjustment. Read the full story.
Should older seniors sell up and rent instead?
If you’ve owned your home for most of your adult life the concept of selling your property and renting may be somewhat hard to grasp but could it be the best option? Ted Rechtshaffen is president and wealth Advisor at TriDelta Financial and he believes that for some older seniors it may make sense. He says that as prices can drop sharply and take many years to recover; that fees for downsizing will likely run to many thousands of dollars; and that if a move is required for health reasons it can take time to sell and free up the cash that’s needed. While much of this argument may not be relevant in today’s market, we know it could change, and Rechtshaffen suggests that you should be looking to live in a property you buy for at least six years. Read the full story.