Bank of Canada bumps up rate

Calgary Herald- The Bank of Canada raised its benchmark policy rate by 25 basis points to 0.75 per cent, even though it scaled back its growth outlook on the belief budget cutting among households and governments in advanced economies will "temper" the pace of the global recovery.

Many of Canada’s commercial banks followed suit by raising their prime lending rates.

The central bank acknowledged the economy is weaker than initially believed — but not feeble enough to call off yet another rate hike and likely more in the future.

Certainly, the interest-rate decision delivered yesterday teemed with caution. The central bank’s statement accompanying its decision highlighted how a "greater emphasis" on budget cutting among governments and households would slow the pace of the global recovery…

Bank of Canada bumps up rate

Prices up, but may be at ‘plateau,’ report finds

Times Colonist- Prices moved up for Greater Victoria homes in the second quarter of this year, but the region’s high inventory is pushing down some parts of the market, a spokesman for real estate company Royal LePage said yesterday.

"Homes are generally selling below asking price, and significantly so in some condominium cases," said Carol Geurts of Royal

LePage Coast Capital Realty in Victoria.

"It appears prices may have reached a plateau for the moment, in that much of the price growth we expected for 2010 has already happened."

Condos in the lower end of the price range are most popular, while it can be more difficult to move those priced at $500,000 and up. "I think it goes back to the economy."

Yesterday, the Multiple Listing Service showed 1,001 listings for condominiums for sale in Greater Victoria. Of those, 28 were priced at $1 million and up, with the highest at $4.2 million for a 4,060-square-foot condo at Songhees…

Prices up, but may be at ‘plateau,’ report finds

Real estate sales sag in Greater Victoria

Times Colonist- Home sales cooled and inventory continued to rise last month as some real estate buyers in Greater Victoria chose to take the time to shop around.

A total of 625 homes sold in June through the Victoria Real Estate Board’s Multiple Listing Service. That was down from 695 sales in May and about a third less than the 946 sales in June a year ago.

Meanwhile, for-sale signs continued to sprout as inventory levels rose to 4,730 properties, up 25 per cent from the 3,794 available a year earlier.

Major banks last month inched some mortgage rates down, but the small decreases didn’t create a rush into the market as potential buyers mulled over increasing inventories for better deals. Observers also note waning consumer confidence in the overall economy may be a factor in the softening market…

Real estate sales sag in Greater Victoria

CMHC: Canada’s very own ticking economic time bomb

The Star- For the past few years, Canada has been basking in the glow of international economic praise.

Our banking system is the best in the world. There has been no need for government bailouts. True, we have recently been running large deficits. But they are manageable in terms of the size of our economy. Our dollar is strong. Investors want to invest in Canada. Best of all, our real estate market, with a short hiccup in late 2008 and early 2009, has been moving steadily upward. Historically low mortgage rates have made housing affordable to practically anyone wishing to purchase.

Not for us the housing disasters that have occurred practically everywhere in the world. No toxic investment paper, as was created in the U.S., by bundling mortgages into investment vehicles that had very poor underlying security. Not for us the “ninja” borrowers (no income, no job, no assets)…

CMHC: Canada’s very own ticking economic time bomb - thestar.com

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