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Canadian Building Permits – June 7, 2017

The total value of Canadian building permits declined 0.2 per cent to 7.1 billion in April, the third consecutive monthly decline. Lower construction intentions for single-family homes, primarily in the Toronto CMA, was a main contributor to April’s decline.

Permit activity bounced back in BC following a large decline in March
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Canadian Inflation – April 21, 2017

Canadian inflation, as measured by the Consumer Price Index (CPI), continued to trend lower in March as consumer prices rose just 1.6 per cent following a 2 per cent increase in February. The Bank of Canada’s new core measure of inflation, called CPI-common which it says better tracks the underlying trend in prices, was up
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Canadian Housing Starts – April 10, 2017

Canadian housing starts rocketed higher in March, rising 18 per cent to over 253,000 units at a seasonally adjusted annual rate (SAAR). That pulled the six-month trend in Canadian housing starts higher to 211,342 units SAAR, well above the rate of household growth in Canada. 

In BC, total housing starts jumped 60 per cent to 44,725 units SAAR following a snowy February that saw new home construction dip due to weather conditions. Single detached starts were up 28 per cent while multiple unit starts increased 76 per cent year-over-year.Looking at census metropolitan areas (CMA) in BC, total starts in the Vancouver CMA were up 8 per cent year-over-year with balanced growth in both single detached and multiple units. Starts in the Vancouver CMA were the highest on record for March since 1972. 

 In the Victoria CMA, where new supply is badly needed, housing starts fell 32 per cent year-over-year, largely as the result of relatively few new starts of apartments and townhouses. New home construction in the Kelowna CMA more than doubled compared to last March with 500 new units breaking ground. Housing starts in the Abbotsford-Mission CMA rose 63 per cent with new multiple unit starts leading the way.

(Copywrite BCREA. Reprinted with permission.)

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Mortgage Rate Forecast 2017-2018

Highlights

  • Mortgage rate forecast to rise through 2018
  • The Fed vs. Trump: conflicting policy goals could push rates higher
  • Data on jobs and growth point to optimism for the economy
  • Stronger than expected Canadian economy on track to close output gap next year

Mortgage Rate Forecast: Outlook

After an initial upward adjustment in global interest rates following the US presidential election, bond markets have since adopted a wait and see approach to US economic policy. As a result,
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Price Per Unit on Apartment Buildings This Week

Highlights

  • Price per unit reaches (another) new high in Vancouver
  • Victoria apartment buildings in high demand
  • Northern BC cap rates dip below 6%

While the total number of listings remains the same as last week, several properties in Victoria, Vancouver Island and the Okanagan have sold this week.  New listing in Vancouver and minor activity on Vancouver Island re-balance the market this week with a total listing count of 122 multifamily properties over $900,000.
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