Daily Market Update

As analysts crunch the numbers from this week’s RBC affordability report a star is emerging…. Why the bank is flashing the cash at realtors and why retailers are studying the suburbs….

The City You Can Afford To Live In Is…….
As the experts pick over the detail of Monday’s report on the housing market by the Royal Bank of Canada and particularly the issue of affordability, Calgary has emerged as one of the stars. Although house prices have risen and continue to do so, household income has also risen. Condos in particular are relatively affordable in the city, with the affordability index showing rises of approximately half those of other property types. Now, while we all prefer more income to mean more disposable cash rather than just keeping pace with the bills, those with property in Calgary can at least still afford to live in the city, not universally the case nationwide. Read the full story.
RBC Flashes the Cash at Realtors
With hot competition between lenders, the Royal Bank of Canada has launched a promotion to encourage real estate agents to recommend them to first time buyers. This sector of the market is great for banks as they can often tie in first timers to multiple products and retain them for life. The higher value of their mortgage, as opposed to those that have been paying their loans down for many years, is also highly deseirable for banks. The promotion runs until September and will give realtors a $1000 reward for new first time customers.  Read the full story.
Not Living Downtown? Wait, and Downtown May Come to You!
There’s a growing thirst among retailers to expand from downtown into the ever growing suburbs in which many of us live. It makes sense; as suburban neighbourhoods grow to a size that can sustain more retail businesses, those businesses want to take advantage of that. An example is the Holmwood area of Saskatoon where an 86-acre retail development is being planned. A smart move, as Holmwood is growing and could see a population of 74,000 within the next 15 years. As well as being great news for retailers, this is also good for the housing market. With more and more people wanting to live in urban neighbourhoods with good local amenities, this should be reflected positively in demand and prices. Read the full story.
Montreal Business Premises In Demand
While vacancy rates have seen slight rises, Montreal is showing strong demand for commercial real estate. The vacancies of course include older properties that are in need of some renovation to make them more attractive to businesses and the changing ways of doing business including home working and hot desks means less space is needed for many companies. New builds though, especially towers and mixed-use developments are in high demand with Canadian businesses and investors outside Quebec and the US being the big clients. Montreal is seeing changes in the landscape, with unappealing industrial areas being redeveloped for living as well as working. Read the full story.