Crebnow jan 29,2016

Page 1

Baby Boomers Feature

THE NEW NORTH

SAY NO GMO

Northeast revival an affordable alternative

Reading the fine print on modified foods

MUNICIPAL A5

Aging population still shaping city

DONNA BALZER A8

A7 FREE jan 29 to feb 4 2016 issue 06-03

real estate news from industry experts

INTEREST–ING TIMES 10.1% Bank of Canada’s overnight lending rate exposes disparities in Canada’s housing markets

RBC noted in a report that Toronto and Vancouver are “unaffordable,” with the bank predicting further price growth in the coming year. he Bank of Canada’s decision According to the Toronto Real to leave its overnight lending Estate Board’s 2016 forecast, averrate unchanged at 0.5 per cent age prices in Canada’s largest city are is expected to have vastly different expected to rise even further following impacts on markets across the country, a 9.8 per cent jump in 2015. say experts. Between December 2014 and The bank’s decision to stand December 2015, benchmark pat on the rate it estabprices in Greater Toronto lished last July instead rose by 10 per cent, of downgrading it by with prices hitting 0.25 per cent will $573,500. Over do little to help the past three revive what ’s years, prices in expected to be the city have a sluggish econincreased by 26 omy in 2016, said per cent; over BMO Financial the past five Group chief years, they’re up economist Douglas 42 per cent. Porter in an interOn the West view with CREB®Now. Coast, Vancouver has “It’s certainly not going seen an ever more preto be enough to turn cipitous jump. Already PORTER around Calgary,” he said. Canada’s most expen“Is it enough to revive the Canadian sive market, the benchmark price of economy? No, a quarter point is not a Vancouver home jumped by 18.9 going to do it. But there’s only so much per cent in December compared to a central bank can do without risking the same period in 2014 to $760,900, other things, and I think we’ve seen according to the Canadian Real Estate those risks in the past year,” Association. In addition to recognizing the strugOver the past five years, prices are gling Canadian dollar, which has fallen up in the city by more than 40 per cent. below 70 cents US for the first time “We have run out of superlatives to in 13 years, Porter noted some of the describe just how wild its market is,” country’s more robust housing markets BMO economist Sal Guatieri said of could be at risk of boiling over as soon Vancouver’s housing market. as this year. In Calgary, benchmark prices in “We’ve seen two risks,” said Porter. Calgary have grown by 23.5 per cent “One is the dramatic decline of the over the last five years, but posted a 2.3 dollar and the other is the fact that per cent decline in the last 12 months. housing markets in other areas have been stoked further to the point where MARKET A3 they’re at risk of overheating.”

managing editor

$448,800

BENCHMARK PRICE Already listed as “unaffordable” in an RBC report, prices in Vancouver and Toronto are forecast to rise even higher in 2016.

Source: CREA, MLS® Home Price Index

$448,800

$450,700

$453,100

$456,100

$456,300

$455,400

$455,400

$454,100

MLS® BENCHMARK PRICE* DEC ‘13 – DEC ‘15

$451,600

$454,300

$456,300

$459,100

$459,500

$459,900

$458,400

$457,300

$456,700

$456,100

$454,800

$449,800

$443,400

$437,600

$431,400

$426,300

$422,800

-2.3%

ALBERTA NEW HOME CONSTRUCTION DOWN IN NOVEMBER CREB® STAFF

A

DEC13 JAN14 FEB14 MAR14 APR14 MAY14 JUN14 JUL14 AUG14 SEP14 OCT14 NOV14 DEC14 JAN15 FEB15 MAR15 APR15 MAY15 JUN15 JUL15 AUG15 SEP15 OCT15 NOV15 DEC15

$6

1

2,0

BENCHMARK PRICE

CALGARY TORONTO VANCOUVER

*All statistics based on monthly data compiled by CREB® via MLS® activity. Includes detached, attached and apartment.

ce Pri

$760,900

BENCHMARK PRICE

YEAR-OVER-YEAR (DECEMBER) BENCHMARK PRICE CHANGE

T

! ed uc d Re 00

18.9%

$573,500

CODY STUART

CITY OF CALGARY

editorial 403-781-1324 advertising 403-263-4940 crebnow@creb.ca

lberta construction crews were less busy in November. Investment in residential construction declined 15.7 per cent from the same period in 2014 to $818 million. Alberta was hardly the only province to post a decline in the month, with Saskatchewan construction falling by nearly 40 per cent, while investment in Manitoba fell by 21.8 per cent.

CONSTRUCTION A3

CONTENTS NEWS BRIEFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3 FIVE THINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4 Bank of Canada Overnight Rate

INDUSTRY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6 Shared equity housing

EVENT LISTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6 INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8 The winter sell

MORTGAGE RATES . . . . . . . . . . . . . . . . . . . . . . . . A8 HOW TO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9 Clear your sidewalks

MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1 OPEN HOUSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19 @crebnow

/crebnow

crebnow.com

DON’T MISS THIS ONE. SPECTACULAR MOUNTAIN AND VALLEY VIEWS OPEN HOUSE | Sunday, Jan. 31, 1- 4 | 184 Sunset SQ, Sunset Ridge, Cochrane From this Calbridge Design “Navajo Model” VILLA at Sunset Ridge in Cochrane. 1,403 sq. ft. developed on the main floor, with 945 sq. ft. of basement development in modern decor finished living area. Main floor has great room, dining area, spacious gourmet kitchen with granite counters and island, laundry & butler pantry as you enter from the insulated double garage. Master bedroom has 4 piece ensuite, with oversized shower, skylight and walk-in closet. Den off the entrance and 2 piece powder room. Living area has 9 ft. knockdown ceilings. The open concept lower level has large recreation & media room area with bright windows, & features walkout to cement patio. Also has large bedroom and 4 piece bathroom. Features include hardwood with carpeting in master bedroom, knockdown ceilings, black GE appliances, main floor fireplace with maple mantle and built-in maple entertainment center. 16 x 10 deck with vinyl floor, fully landscaped. MLS®C4036562

JIM WILKIE 403.819.2947


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