Rate hikes, rental restrictions, and a failed attempt to combine 6 of BC’s Real Estate boards.
Last Roundup, we touched on reactions and outcomes from the International Housing Summit in Vancouver. This month, we take a look at some of the most notable occurrences in Canada’s real estate and mortgage economy. Here’s this month’s Real Estate Roundup:
Starting off, TD Bank has once again hiked their mortgage rates. After a decision to raise their special rate offers on four-year and five-year fixed mortgages on Nov 15th, the bank has moved again to raise its rates, this time imposing a 10 basis point bump on all new fixed amortizations of 25 years or more.
– Huffington Post (hyperlink: http://www.huffingtonpost.ca/2016/12/01/td-bank-mortgage-rates_n_13349520.html)
Amsterdam and London have officially moved to restrict short-term rentals through Airbnb, imposing a 60 day and 90 day maximum respectively. The move has many local experts and authorities wondering if and how this will change the inevitable decisions in Vancouver and Toronto.
– CBC (hyperlink: http://www.cbc.ca/news/business/airbnb-limits-short-term-rental-1.3876253)
But according to Tom Caton, CEO of AirDNA, the online homestead network isn’t to blame for rental housing shortages. His company specializes in analysing data from active Airbnb rentals, and from this data anticipates only 100 apartments have been taken out of the Victoria rental market as oppose to the 1000 estimated by the GM of Laurel Point Inn.
An attempt to combine six real estate boards across BC came up just short, with a vote resulting in 3 of 6 boards voting for the amalgamation. Support from 4 boards would have carried the motion through. The move was intended to make selling between markets easier for agents, eliminating the subtle differences between jurisdictions.
– Business in Vancouver (Hyperlink: https://www.biv.com/article/2016/12/move-combine-real-estate-boards-across-bc-falls-sh/)
And while supply seems to be shortening in the GVRD, the opposite seems to be true in Penticton. The Okanagan City’s Mayor, Andrew Jakubeit believes 2016 will set an all time record for building projects. Last year, the year-to-date construction value up until November was recorded at $56.5 million. This year, it has exceeded $189.5 million.
– Capital News, Kelowna http://www.kelownacapnews.com/news/405689476.html
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