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December 19, 2014

After many months of work by the New Home Buyer Protection Office, CHBA – Alberta, and the Home Warranty Companies, The Construction Performance Guide for New Home Warranty in Alberta has been released.

The attached bulletin provides information on the release, locations to access The Guide and the dates for the information sessions across the province. Please distribute this bulletin to all your members.

December 19, 2014

CHBA-ER's November Detailed Permit Report is now available on the members section of the website. Click HERE to view the report.

December 03, 2014

RBC ECONOMICS RESEARCH – DAILY ECONOMIC UPDATE – December 3, 2014


Bank of Canada holds overnight rate at 1.00% and says current stance is appropriate

The Bank of Canada met expectations today by holding the overnight rate at 1.0% although the comments on the economy were “less dovish” compared to past statements. Specifically, today’s statement pointed to stronger exports, investment, and employment as laying the groundwork for a return to “balanced and self-sustaining growth.” The stronger than expected gains in recent quarters resulted in the Bank saying that the output gap was smaller than it had estimated in October. In the Monetary Policy Report, the Bank suggested that the output gap would be fully eliminated in the second half of 2016 as the amount of spare capacity was gauged to be between 0.5% and 1.5% percent.

The Bank highlighted the downside risks to the inflation profile given the sharp drop in oil prices although pointed to offsetting factors as likely to temper the effect. The statement acknowledged stronger US growth as being one of the factors supporting the “broadening recovery” in Canada. There has also been an increase in business and employment, the Bank said, although the labour market data continued to indicate the persistence of “significant slack” in the economy. While the Bank noted that inflation has been running hotter than it has expected, the increase was attributed to “some sector-specific factors” as well as the effect of the weaker Canadian dollar. The statement noted that although “underlying inflationary has edged up”, it remained lower than the 2% target. The statement also strengthened the language concerning the run-up in household imbalances, which are now said to present “a significant risk to financial stability.”

Today’s statement saw the Bank scale back its communication of the balance of risks to the inflation projection further, as the statement only said that the current level of the policy rate was deemed to be appropriate. The Bank incorporated the recent run of stronger than expected economic activity in Canada and the US and contrasted this to disappointing reports from other regions and the decline in commodity prices, which “will weigh” on Canadian growth. Even after incorporating the recent drop in commodity prices, we expect that the strong increases in gross domestic product (GDP) growth in the second and third quarters of 2014 will be followed by another above-potential rise in the final quarter of 2014, thereby resulting in the annual growth rate coming in at 2.5% this year. Furthermore, the solid composition of economic growth in recent quarters and expectations of firm US demand bolstering exports (with US growth getting a lift from lower energy prices) are projected to result in Canada’s economy reaching full production capacity in the second quarter of 2015, which would limit the downside risks to core inflation. We expect that as the risks to the inflation projection tilt toward the upside on the back of strong growth, it will behoove the Bank to begin the process of reducing policy stimulus.

Dawn Desjardins, Assistant Chief Economist, RBC Economics

 Source: http://mortgage.rbc.com/sheri.mitchell

 

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November 27, 2014

Click on the link below to access the Market Update reports for November.

 

http://www.chbaalberta.ca/economic-analysis

November 18, 2014

Alberta home inspectors warn proposed national standards will send the cost of a home inspection soaring in the province if approved.

The proposed new rules — drafted by the Canadian Standards Association (CSA) and open to public review until mid-December — could hike the cost of a home inspection from $400 to $600 today to as much as $1,800 given the additional time required, raising the likelihood consumers will forgo the procedure before buying a home, the provincial group said.

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Source: edmontonjournal.com 

November 07, 2014