CREB TALK - December 19, 2008

No U.S.-style housing collapse in Canada: RBC
Canada’s housing sector is entering what RBC Economics calls a “cyclical downtown,” but says the risk of a U.S.-style meltdown is remote.
RBC senior economist Robert Hogue says many factors that triggered the U.S. housing collapse are either absent or of much lower significance in Canada.
He says the housing market is expected to hold up even as a sluggish economy threatens income growth and erodes consumer confidence.
Mr. Hogue says the sub-prime business remains marginal, banks are stable and households are generally not overstretched financially.
The RBC affordability index shows a standard condo to be the most affordable housing in Canada, requiring 31.4 per cent of pre-tax income. A standard townhouse is next at 36.9 per cent, followed by a detached bungalow at 45.7 per cent and a standard two-storey home at 52 per cent.


CREB TALK - December 12, 2008

THE UPSIDE OF THE DOWNSLIDE
Are there opportunities in the economic slowdown?
Published November 27, 2008, by Jeremy Klaszus in News
Fast Forward Weekly
The boom is over and bad news is everywhere. Carnage on the stock
markets. People losing their savings, jobs and even their homes.
Here in Alberta, we’re coming out of one of the most overheated
growth periods the city has ever experienced. The downsides of that
boom have been well-documented, from the housing shortage and
miserable customer service to the long work weeks and low quality
of life. A bust brings bad news of its own, but we wanted to take
a break from the endless news of economic doom and gloom to
start a new conversation: are there opportunities in this economic
slowdown? What are they? Could the bust actually be a good thing
for Calgary in some ways? The wallet may slim a bit in the coming
months, but read on for some things worth smiling about.

AFFORDABLE HOUSING
Calgary housing prices skyrocketed by nearly 40 per cent in 2006.
“Builders were running at 120 per cent of their capacity,” recalls
Ed Jensen, president of the Calgary Real Estate Board. “And guess
what? They couldn’t get staff. Prices went up, everything went
up and it hurt affordability.” Now inventory has increased while
prices and interest rates have come down, putting home ownership
within reach for more people. “Buyers are in the driver’s seat,” says
Jensen. “They can negotiate. They couldn’t negotiate two years
ago.” And what about people who already own and want to move?
“If your house went up in value, so did the one you’re going to
buy,” Jensen says. “If your house went down in value, so did the
one you want to buy. So there’s no harm in this marketplace.”
Published November 27, 2008 by Jeremy Klaszus in News •
What else can you look forward to? Continue reading this article at www.ffwdweekly.com