Calgary sales slide as yields ease before BoC decision
Calgary's market cooled further in August as bond yields eased ahead of the Bank of Canada's next decision, which is widely expected to hold. Toronto still produced a stampede of buyers for the right listing, and Laurentian Bank's takeover cleared its last regulatory hurdle. RBC argues the country's housing market is finally turning a corner, though CMHC data shows more borrowers stretching into longer amortizations to make the math work. Elsewhere: a RE/MAX leadership change, a referral playbook worth borrowing, and a Vancouver listing that throws in an unusual perk.
The Numbers
3.33% (1 minute read)
The five-year Government of Canada benchmark bond yield slipped to 3.33%, down from 3.34% in the prior reading. Fixed mortgage pricing tracks this yield closely, so the small pullback nudges lenders' best rates down a notch just ahead of the Bank of Canada's own announcement.
Rates & Money
Bank of Canada expected to hold rates again this week (2 minute read)
Economists expect the Bank of Canada to leave its policy rate unchanged as trade tensions with the US and stubborn inflation pull policy in opposite directions. Don't expect a cut to loosen affordability before the fall listing season gets going.
Longer amortizations still dominate new insured mortgages (3 minute read)
Most new CMHC-insured mortgage volume now stretches beyond the standard amortization window, according to Canadian Mortgage Trends. The share eased slightly from the prior quarter but remains well above where it sat a year ago, a sign buyers are still leaning on longer terms to close the affordability gap.
The Market
Calgary sales cool further as prices give ground (1 minute read)
Calgary home sales pulled back in August and the benchmark price eased, according to the Calgary Real Estate Board. It's a cooling signal for a market that had held up better than most through the year, and one more sign the slowdown is spreading west.
More Canadians race to pay down their mortgages faster (8 minute read)
A growing number of Canadians, especially younger buyers, are putting bonuses, inheritances and tax refunds straight against their mortgage principal, the Financial Post reports. It's a reminder that affordability pressure is pushing some clients toward aggressive prepayment instead of trading up.
Toronto listing draws a stampede in one weekend (2 minute read)
A three-bedroom house near a park in Toronto's Davisville neighbourhood pulled a crowd of buyers over a single weekend, ending in a bidding war among a handful of finalists. It's the kind of outcome agents in the area haven't seen this consistently in a while, and worth citing to sellers weighing whether to list now.
Industry
Laurentian Bank deal clears its final regulatory hurdle (3 minute read)
Regulators have signed off on the last approvals needed for the acquisition of Laurentian Bank, clearing the way for the deal to close. Brokers who route business through Laurentian should watch for changes to underwriting and pricing once new ownership settles in.
RE/MAX names Alex Vidal as new president (3 minute read)
RE/MAX has named longtime brokerage executive Alex Vidal as its new president, moving over from ERA Real Estate as the parent company reshapes its leadership team. He'll report to chief executive Tamir Poleg.
The Playbook
The Close sizes up this year's virtual staging tools (25 minute read)
The Close compares the current crop of virtual staging software, weighing cost, realism and ease of use for agents prepping empty listings for photos before a fall push.
The Argument
RBC says the housing recovery is finally underway (3 minute read)
RBC Economics argues the country's housing market is finally turning a corner toward recovery, pointing to improving affordability and firming demand as the drivers. But not everyone in the market is convinced, especially in cities where prices are still falling.
Design & Living
Azure's September design calendar is worth a look (8 minute read)
Azure Magazine rounds up the design events worth catching this month, from architecture talks to gallery openings, as the fall lecture season kicks in alongside back-to-school scheduling. A handy list to pass along to clients renovating, or just curious about what's shaping design trends.
Beyond the Border
Seattle-area MLS creates a 'First Look' pre-listing status (3 minute read)
A new settlement between Northwest MLS and Compass created a 'First Look' status, giving agents and sellers a way to build interest in a home before it's fully ready to list, instead of treating listings as strictly ready or not.