The last time the Winter Olympics were held, Mr. Flaherty announced his intentions to tighten mortgage rules for a second time. (There would subsequently be two more rounds of tightening between then and now.)
Four years later and the Calgary real estate market is in fine shape, arguably the strongest major market in Canada and seemingly unhindered by the last couple rule changes.
A total of 417 homes have sold one week into February, a 6.92% year-over-year increase. New listings, which were forecast (or hoped) to rise and ease price pressure, have remained at a flat -0.28% y/y. Meanwhile active listings are down -17.99% from a year ago. As you might expect with the above stats, prices are up across all 3 housing categories.
During the 2010 Winter Olympics, 20 luxury homes sold in Calgary that month. One week in, and we’ve already surpassed February 2010’s month-end total with 23 properties selling for at least $1 million with two of those selling for above $3 million. Jeepers.
Over the past several weeks – with the exception of the last few days – bond yields have fallen further which resulted in lenders reducing rates.
There’s a strong correlation between fixed rates and bond yields with decades of history to prove it.
So I was disappointed to read this tweet from someone that many Canadians trust and respect with finances:
I hope she makes amends with the “executive idiots” soon and gets back on TV doing what I think she knows best: helping people get out of debt.