Home sales rebound, but it won’t last long, analyst says

Times Colonist- Existing home sales in Canada rebounded in August, but the industry consensus is both prices and activity will decline the rest of this year. The only argument is by how much.

The Canadian Real Estate Association reported yesterday that August sales were up 4.1% on a seasonally adjusted basis from July — a bad month for home sales because of the effects of the harmonized sales tax implementation in Ontario and British Columbia. As consumers scrambled to make their home purchases ahead of the July 1 HST deadline, June figures saw a boost, but July sales withered…

Home sales rebound, but it won’t last long, analyst says

Carney says banks could cut costs to pay for new rules

Financial Post- Budget tightening at financial institutions and increased competition among lenders could offset higher borrowing costs linked with the introduction of new global rules on bank capital levels, Bank of Canada governor Mark Carney said Tuesday.

Speaking to business leaders and academics in Berlin, Mr. Carney said early estimates on potential higher interest rates consumers face in light of the new rules — agreed to over the past weekend by the so-called Basel Group of banking supervisors — understates the benefits and errs on overstating costs…

Carney says banks could cut costs to pay for new rules

HST blamed for drop in sales across the country

Financial Post- The Ottawa-based group, which represents 100 real estate boards across the country, said July sales fell 6.8% on a seasonally adjusted basis from the previous month, a decline "almost entirely the result of fewer sales in British Columbia and Ontario," where the HST went into effect on July 1.

The slowdown had been expected as consumers rushed to buy homes before July 1 in those provinces. The HST only applies to services used in purchasing and selling an existing home, such as real estate commission, not to the actual sale price.

The housing market did get a bit of good news from some banks, which lowered interest rates this week…

HST blamed for drop in sales across the country

Housing market feels impact of HST introduction

Ottawa Citizen- The new harmonized sales tax introduced in British Columbia and Ontario last month had an immediate impact on the housing market, according to the Canadian Real Estate Association.

The Ottawa-based group, which represents 100 boards across the country, said July sales plunged 6.8% on a seasonally adjusted basis from a month ago, a decline “almost entirely the result of fewer sales in British Columbia and Ontario.”

The slowdown had been expected as consumers rushed to buy homes ahead of the July 1 implementation in those provinces. The HST only applies to services used in purchasing and selling an existing home, such as real estate commission, and not the actual sale price.

In British Columbia sales dropped 14.1% from a month ago on a seasonally adjusted basis and Ontario the decline was 8%. The two provinces accounted for 85% of the the change in national activity…

Housing market feels impact of HST introduction

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