Did you know that most bank representatives are required to
meet certain “Sales Revenue” (often referred to as SR) goals? These goals are
reviewed on a quarterly basis and usually increased as soon as you have met
your previous goal. Not reaching your target will impact your Performance Bonus
at the end of the year, never mind also having to listen to your manager harp
at you!

They will actually earn more “Sales Revenue” if they sell a
higher rate mortgage or a longer term. They will actually earn negative Sales Revenue if they discount the rate too low. Do you think they are
willing to compromise meeting their Sales Revenue goal or earning a higher
Performance Bonus in order to give the client a better rate? Not likely. It
becomes more about what is best for “bank representative” or what is best for
the bank rather than what is best for the customer.

How do I know this?

I worked for one of the big 5 banks for seven years.

I now work as a Mortgage Associate for one of Canada’s
leading Mortgage Brokerages. So if you want unbiased advised about your
mortgage, speak to an independent Mortgage Associate/ Specialist not tied to
any banks.

I rest my case.

Signed Anonymous

Ex Banking Representative

Financial Institutions must “make sure they have the financial resources to manage those risks and the institutional capacity to manage those risks,” Mark Zelmer, assistant superintendent in charge of regulation, said in an interview. “Anybody that was just simply running the business and managing to OSFI expectations is putting a lot of faith in the regulatory framework.”

The Office of the Superintendent of Financial Institutions released draft guidelines for mortgage underwriting in March urging lenders to establish internal standards on the ability of borrowers to service their debt and take “reasonable steps” to verify income. The rules would also limit home equity lines of credit to 65 percent of the value of the property.

Zelmer’s comments underscore tension between policy makers and mortgage lenders as a booming housing market helps drive profits at banks even as it increases their exposure to a drop in home prices. Analysts at CreditSights Inc. assigned an“underperform” rating for the Canadian banking industry in a May 15 report, citing concern that current spreads on their debt don’t “adequately compensate” for potential risks in the housing market.

“Ultimately, it’s the institutions that are first and foremost responsible,” Zelmer, 51, said. “The regulatory framework and supervision is the safety net that stands behind that.”

Low Borrowing Costs

While Canada escaped the last housing crisis by steering clear of subprime mortgages, low borrowing costs set by the Bank of Canada and commercial lenders have fueled a debt surge in Canada that now threatens the country’s recovery. Canadian household debt levels relative to income have surpassed those in the U.S. and the U.K.

Household debt is the biggest risk to Canada’s financial system and necessitates prudent lending practices to help avoid the type of crises experienced elsewhere, according to Zelmer.

“Certainly, what’s happening with rising household indebtedness is probably the most important domestic vulnerability facing the Canadian financial system,” Zelmer said in the interview. “Hopefully, ours would be a benign path as opposed to some of the history we’ve seen elsewhere.”

Approved Practices

In an April 5 speech, OSFI Superintendent Julie Dickson said the regulator had found cases where financial institution weren’t following mortgage-lending practices approved by the company’s board of directors. The agency’s proposed rules would require boards to approve companywide mortgage policies, and senior executives to declare annually the plans are being followed.

The rules may “have a negative impact on borrowers and could cause mortgage costs to rise,” the Canadian Association of Accredited Mortgage Professionals said in a written responseto OSFI. The association, which represents mortgage lenders, insurers and brokers, has urged the regulator to be flexible in imposing some of the rules.

The period for commenting on the proposals rules closed May 1. OSFI is trying to have a final version of the guidelines by the end of June that will have “benefited from the feedback that we’ve received,” Zelmer said.

Canadian banks, including Royal Bank of Canada (RY) and Bank of Montreal (BMO), have said they’re comfortable with their exposure to the housing market.

‘Very Well Managed’

Royal Bank Chief Executive Officer Gordon Nixon said during the May 8 Bloomberg Canada Economic Summit that lending policies in Canada are “very well managed.” Bank of Montreal has said it could absorb losses under an “extreme stress scenario” with high unemployment, a “significant decline” in housing prices, a rapid increase in interest rates and a drop in economic output.

Canada’s banks have been ranked the soundest by the World Economic Forum for four straight years. Four Canadian banks were among the world’s six strongest in Bloomberg’s second annual rankings released May 3. Canadian Imperial Bank of Commerce was No. 3, followed by Toronto-Dominion Bank (TD), National Bank of Canada (NA) and Royal Bank.

Bank exposure to a housing correction is “very manageable” given their relatively strong financial position, according to a May 16 report by Scotiabank analyst Kevin Choquette, who tested a scenario where house prices decline by as much as 35 percent. Direct bank earnings would drop as much as 16 percent under that scenario, the report found.

JPMorgan Loss

In the interview, Zelmer said Canadian lending standards are “not in a situation” like the U.S. before the financial crisis and the regulator’s objective is to be “pro-active”with new guidelines. He said Canadian regulators may seek to draw lessons from JPMorgan Chase & Co. (JPM) $2 billion trading loss announced last week.

“If there are lessons to be drawn we’ll be paying close attention to see what are the facts as opposed to all the hype around the situation and see what that tells us in terms of the oversight of our own institutions,” Zelmer said.

“Given past experience elsewhere, given what’s happening in Canada, it’s incumbent on us to be very clear about what our expectations are at this stage of the cycle,” he said.

There is evidence some OSFI officials are concerned that banks may be vulnerable. A memo by OSFI’s manager of policy development, Vlasios Melessanakis, obtained by Bloomberg News under freedom-of-information law, warned that Canada’s banks aren’t immune to collapses triggered by falling housing prices. A spokesman for the regulator said Melessanakis’s remarks don’t reflect the regulator’s official position and were not sent to Dickson.

‘Potential Vulnerability’

“We’re paying close attention to it because it is an important potential vulnerability for the system,” Zelmer said.

In April, Canadian Finance Minister Jim Flaherty introduced legislation that prevents financial institution from using government-insured mortgages as collateral for bonds. Canada’s biggest covered bond issuers have piggy-backed off government guarantees to cement top AAA ratings for their bonds, which cut their funding costs compared with European and Australian banks.

Flaherty has also refused to raise the C$600 billion legal limit on mortgage insurance of the Canada Mortgage Housing Corp., and the federal housing agency has begun rationing bulk insurance for financial institutions.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

TORONTO, May 14, 2012 /CNW/ – Among Canadians who plan to buy a home within the next two years, women (49 per cent) are more likely than men (35 per cent) to be first-time homebuyers, according to the 19th Annual RBC Homeownership Poll. Overall, 51 per cent of women and 65 per cent of men who are likely to buy in the next two years already own a home.

“We are seeing more single women entering into the housing market, as income levels, changing demographics and lifestyle patterns shift purchasing habits,” said Marcia Moffat, head of home equity financing, RBC. “But women are being more cautious than men, weighing cost, affordability and job security before buying a home.”

Of the Canadians who have recently become first-time homebuyers, men and women were tied (47 per cent) in saying affordability was the biggest concern that prevented them from purchasing a home earlier. Women outpaced men in three other reasons that caused them to delay their first home purchase.

FAST FACTS

The idea of financial security arises once again when it comes to choosing a mortgage. The survey showed Canadian women (16 per cent), regardless of whether it was their first home or not, were less likely to take on a variable mortgage compared to men (25 per cent).

However, both sexes were similarly comfortable with the prospect of taking on a fixed rate mortgage (women: 40 per cent; men: 44 per cent), which largely reflects the current trend where Canadians are now looking to lock in at historically low interest rates. Women (44 per cent) are also more likely than men (31 per cent) to consider a combination mortgage, which has both fixed and variable rate features, allowing for peace of mind and flexibility at the same time.

Moffat offers the following five first-time homebuyer tips:

• Balance your books and assess total costs: Owning a home is a big financial decision. Balance the costs of homeownership against your lifestyle. If you like to travel or dine out often, leave yourself with enough wiggle room to enjoy what’s important to you.
• Get your (financial) house in order: Start by getting pre-approved for a mortgage, with professional advice that will help you understand the long term costs and choose the right product to suit your needs. This will give you a better idea of your price range before you start your search.
• Budget for extra costs: Don’t forget about closing costs, which can include legal fees, land transfer taxes, or a new home warranty. Closing costs are typically one to two per cent of your final purchase price. Build this into your budget along with the cost of new appliances and moving.
• Create an emergency fund: Unexpected expenses can catch you off-guard, such as a leaky roof, a replacement furnace or an increase in fees or taxes. Online tools and calculators along with expert advice can help you build a buffer.
• Add more revenue: Look for opportunities to manage housing costs, either by renting out part of the home or having a roommate. This can help offset expenses in the first few years.

Matt Gierasimczuk, RBC

Karen Kinsley was, until recently, among the most powerful women in Ottawa you’d never heard of. Since becoming CEO of the Canada Mortgage and Housing Corp. in 2003, she’s presided over an unprecedented expansion of Canada’s housing market. Politicians barely blinked as CMHC grew into one of the nation’s largest financial institutions. But now Kinsley’s masters have turned on her.

For months, Finance Minister Jim Flaherty has said he expects CMHC to remain within its $600-billion limit for insurance outstanding. Since it’s already nearing that cap, this greatly constrains underwriting activities. In April, Flaherty placed CMHC under the supervision of the Office of the Superintendent of Financial Institutions. Then came a bombshell: he hinted CMHC might one day be forced to exit underwriting altogether.

Just what provoked Flaherty is unclear. Some believe he’s looking for ways to raise borrowing costs to calm housing markets. Others suspect he’s gained a belated appreciation of the risk CMHC’s activities present to taxpayers. Regardless, the minister may find getting out of mortgage insurance hard to do.

Founded after the Second World War to house returning veterans, CMHC has become firmly entrenched. By legislation, any mortgage for which the down payment is less than 20% must be insured for the full amount and for the entire amortization period, as long as 30 years. Should the borrower default, the insurer pays the outstanding balance, up to 18 months of accrued interest, plus foreclosure and maintenance costs. It allows more Canadians to bid on homes, and prices in your neighborhood are probably higher as a result. CMHC provides other forms of insurance aimed at helping banks raise new capital, thus ensuring cheap funding for new mortgages. Of the $1.1-trillion worth of outstanding mortgages in Canada, roughly half is insured by CMHC. “It’s the 60,000-pound gorilla in that space, and our collective risk exposure has been increasing with each passing day,” says Queen’s University finance professor Louis Gagnon.

Even if underwriting ceased tomorrow, CMHC’s liabilities would diminish slowly over time. Its private-sector competitors would reap market share, but they, too, enjoy federal backing. (Should rival insurer Genworth go bust, for example, the federal government would cover 90% of any claims.) Jim Murphy, CEO of the Canadian Association of Accredited Mortgage Professionals, says that guaranty was intended to place private insurers on equal footing with CMHC. “If the government’s no longer in the business, it can be argued, why do you need it?” he says.

Yet, without that backing, lenders would charge higher rates to all borrowers, and more consumers would find themselves unqualified to borrow. That could undermine the demand for homes, causing a serious correction in prices. Kinsley may be on a shorter leash, but Flaherty can’t afford to put her agency down quite yet.

from Matthew McClearn

Canadian
housing starts rose to the highest since September 2007 last month, led by
multiple-unit projects, Canada Mortgage & Housing Corp. said Tuesday.
The annual pace of home starts rose 14% to 244,900, Ottawa-based CMHC said.

Participants at Bloomberg’s Canada Economic Summit in
Toronto said talk of a housing bubble is overblown.

‘I’d like to see the rhetoric come down a little bit’

“When we look at the overall marketplace, there might
be pockets of vulnerability but we remain quite comfortable,” said Gordon
Nixon, chief executive officer of Royal Bank of Canada “Frankly, I’d like to
see the rhetoric come down a little bit.”

A residential real-estate boom in the world’s
10th-largest economy has prompted senior policy makers such as Bank of Canada
Governor Mark Carney and Finance Minister Jim Flaherty to warn that Canadians
may be taking on too much debt.

Mr. Carney told lawmakers April 24 that high levels of
household debt remain the greatest domestic risk to Canada’s economy. In an
appearance before a parliamentary committee, he reiterated that a rate increase
“may become appropriate,” and warned Canadian families to exercise “caution”
with their debt levels.

Mr. Carney has kept his key lending rate unchanged at
1% since September 2010 in the longest pause since the 1950s.

10% overvalued

Housing prices in Canada are probably about 10%
overvalued, economist Paul Fenton said at the Bloomberg summit.

There doesn’t seem to be a sense that there’s been
overbuilding, and housing doesn’t pose a systemic threat to the function of the
nation’s financial system, said Mr. Fenton, senior vice-president and chief
economist at Caisse de Depot et Placement du Quebec.

The 244,900 housing starts last month released Tuesday
beat economists’ expectations. The highest forecast in a Bloomberg economist survey
with 21 responses was a 222,600 rate.

“Wow. This report reflects unbelievable strength in
Canadian housing starts, and all of the gain was in multiples again which
reflect the ongoing condo craze,” Scotia Capital economist

Sales of new condominiums in Toronto reached 6,070
units in the first three months of the year, a record for the first quarter,
market research firm Urbanation Inc. reported May 7. As many as 40 new projects
with more than 11,000 units could come on the market in the second quarter, a
trend that may cause inventory of unsold units to approach a record set in
2008, Urbanation said.

Risk Averse

Condo builders “tend to be risk averse,” insisting
that 70% of a project is presold and buyers put down at least a 20% deposit,
according to Jim Ritchie, senior vice president of sales and marketing at
Tridel, a Toronto-based real estate developer.

Concerns about foreign buyers are overdone, given about 95% of
purchasers are ‘locals’

“It’s all about managing risk,” Mr. Ritchie said.
There’s a market for condos because average house prices in Toronto’s 416 area
code are about $830,000, compared with $400,000 for a new condo, he said.

Almost 60% of people buying condos in that area are
either single or couples without children, said Mr. Ritchie, who said concerns
about foreign buyers are overdone, given about 95% of purchasers are “locals
who have social insurance numbers and local addresses.”

RBC’s exposure to the condo markets in Toronto and
Vancouver isn’t “significant,” Mr. Nixon said. “Part of the reasons for that is
firstly a lot of the condo buyers in those markets are cash buyers. At the
margin there’s certainly a significant foreign component to them, and I think
to some degree the banks are a bit slightly more cautious,” he said.

No Bubble

The increase in housing prices in Canada is
unsustainable, said Finn Poschmann, vice president of research at the Toronto-
based C.D. Howe Institute. It’s difficult for market participants to tell a
bubble has formed before it has deflated, he said.

“The big question people ask is, is Canada’s housing
market in a bubble. Our answer to that is no,” said Jim Murphy, chief executive
officer of the Canadian Association of Accredited Mortgage Professionals. The
association’s research suggests growth in mortgage credit is below average, he
said.

Canada’s
housing agency said Tuesday there is no compelling evidence of a price bubble
based on factors such as household income and interest rates.

“Clear evidence of a bubble is lacking,” Canada
Mortgage & Housing Corp. said in its annual report. “CMHC continues to
monitor very closely housing prices and underlying factors such as demographic
and economic fundamentals and financial conditions across all major urban
centers, including condominium markets.”

CALGARY — It was a very busy April for Calgary’s housing market.

According to the Calgary Real Estate Board, overall residential MLS sales in the city of 2,200 for the month were up 26.07 per cent from April 2011 and the average sale price of $429,388 increased by 1.95 per cent from last year.

Carrie Pepper was one of the many caught up in the April activity as she bought a condo in the Thorncliffe-Greenview neighbourhood.

“I wasn’t even planning on buying. I was looking for two months maybe. I found a lot of places that were good prices,” said Pepper who looked at about 10 properties.

“I didn’t want to rent because it’s so expensive. So why not buy?”

She said continued low interest rates played a role in her decision.

“That was huge. This is my first time buying. I know it’s a good time to buy right now,” added Pepper.

Apparently many others felt the same as Pepper.

In the single-family home category, CREB said sales of 1,582 were up 30.64 per cent from last year and the average sale price rose by 0.88 per cent to $483,519.

In the condo apartment category, there were 351 MLS sales, up 13.23 per cent from last year but the average sale price dipped by 5.76 per cent to $267,931.

And in the condo townhouse category, sales rose by 19.20 per cent to 267 with the average sale price increasing by 8.31 per cent to $320,912.

“What we saw in April was strong demand coupled with less good inventory. We also saw lots of multiple offers,” said Cody Battershill, a realtor in Calgary with RE/MAX House of Real Estate.

“I think that everyone’s realizing the world didn’t end and in fact on most metrics we are back to or stronger than most of the previous peaks achieved in the last cycle. Some people think we could be at the beginning of another strong positive economic cycle while others would still encourage cautious optimism. Regardless, living in Calgary means enjoying high economic growth, job growth, income growth and migration.”

He said the economic fundamentals in Calgary are strong and will be for the foreseeable future.

Ann-Marie Lurie, CREB’s chief economist, said the growth in full-time employment, combined with improving migration levels, is translating into improved demand for housing.

“While sales growth does seem exceptionally strong, it is important to keep in perspective that the sales activity in Calgary is returning to levels more consistent with the long-term average,” she said.

CREB said its MLS Home Price Index benchmark price for single-family homes was $449,500 in April, up 7.41 per cent from a year ago. The benchmark price for condo apartments was up 0.77 per cent to $248,300 and it rose by 4.58 per cent in the condo townhouse category to $294,500.

CREB says its new home price index measures how typical properties are valued in the market rather than relying on average and median prices.

It is calculated using a statistical model that estimates prices based on several factors.

In the city, total new listings in the MLS market dipped by 0.49 per cent in April to 3,238 and active listings were off by 16.67 per cent to 5,270.

“While sales activity and the level of new listings continue to remain below long-term trends, the spring market is definitely on the rise over the previous year,” said Bob Jablonski, CREB’s president. “As confidence in the local housing market continues to build, we anticipate a rise in demand, followed by improved listings from those waiting to see some price appreciation prior to listing their home.”

mtoneguzzi@calgaryherald.com

Finance Minister Jim Flaherty outlined the proposed changes to Canada’s national housing agency in a wide-ranging bill tabled in parliament on Thursday.

The CMHC insures the vast majority of Canadian mortgages, as well as guaranteeing mortgage-backed securities issued by Canadian banks. It is backed by taxpayer dollars and under current rules, is governed by the Department of Human Resources and Skills Development Canada.

But the changes outlined Thursday will give the Office of the Superintendent of Financial Institutions — the top financial regulator in Canada — and the Department of Finance ultimate authority over CMHC’s actions.

“It is a recognition that CMHC has become a significant financial institution,” Flaherty said. “CMHC was created to assist in social housing [but] it’s become much more than that.”

“In light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the two per cent inflation target over the medium term,” the central bank said in a statement.

Canada’s economy will return to its full capacity – the speed limit at which it can grow without generating excessive inflation – in the first half of 2013, the bank said, at least a quarter earlier than it previously predicted.

The Bank of Canada has frozen rates since September 2010 after it became the first in the G7 industrialized nations to raise borrowing costs from crisis lows. It had a false start in mid-2011 when it signaled intentions to increase rates, but quickly withdrew that language by September as the European debt crisis exploded.

Its language in Tuesday’s statement was more tentative than in July, saying stimulus “may” be withdrawn whereas in July it said it “will” be withdrawn. It was also cautious in adding that it would weigh the timing and degree of any such withdrawal against developments at home and abroad.

Bank of Canada Governor Mark Carney had adopted a more hawkish tone in the past month and analysts had expected to see that reflected in Tuesday’s statement.

Still, market players had not expected a move by the bank until the second quarter of next year, according to the median forecast in a Reuters poll taken last week.

Economic growth and inflation are both likely to have more momentum than forecast in the January Monetary Policy Report. The bank revised the 2012 growth projection to 2.4 per cent from two per cent but cut the 2013 projection to 2.4 per cent from 2.8 per cent. It sees growth moderating to 2.2 per cent in 2014.

Inflation will soften in the second quarter but then will rise to the bank’s two per cent target “for the balance of the projection horizon,” the bank said. In January it saw inflation reaching two per cent in the third quarter of 2013.

© Copyright (c) Reuters

Home construction is booming in the Prairies, and Alberta, after years of tepid housing starts, is leading the charge.

The rate of residential construction, especially condominiums, has lagged the oil boom in Alberta in the past few years. But blockbuster housing starts in March — they jumped 72% year over year — hint that residential construction is getting hot again.

The data were released by Canada Mortgage and Housing Corp. (CMHC), and showed that starts grew nationally by 5% to 215,600 from the previous month. Starts in Alberta jumped to their highest levels since March 2008.

Robert Kavcic, an economist at BMO Capital Markets, said the data show the Alberta housing market is finally picking up momentum again, something it lost following the province’s housing boom in 2006-2007.

“It looks like we’re at a point now where strong economic growth and stronger population trends are starting to finally tighten that market up a little bit,” he said. “We’re seeing more sustainable momentum in housing starts in Alberta.”

Growth in Alberta comes as the entire Prairies region is benefiting from an oil-fuelled economic boom, boosting housing along with it. Data from CMHC show Prairie provinces posted an annualized growth rate of 6.4% in urban housing starts in March.

Housing starts in Alberta have grown 53% in the first three months of the year, while next door neighbour Saskatchewan has registered growth of 34% in starts. Manitoba, meanwhile, saw a 41% jump in starts.

Home construction has soared in Alberta’s biggest cities, especially the condo segment. In Calgary, while single-detached-home starts increased 55% year-over-year, multi-unit starts were up a whopping 407%.

That’s good news for a market that suffered from a glut of supply following the 2008 financial crisis. Home construction went into frenzy mode in 2006 and 2007 as the province struggled to keep up with a flood of workers from other parts of Canada who worked in the oil sands. However, after oil prices crashed in 2008, many were laid off or moved back home, leaving fewer buyers for the surplus of homes built.

A jump in starts suggests that excess supply has been absorbed, and the province is starting to build again as it accommodates one of the fastest growing populations in Canada.

While the Prairies recorded strong growth in housing starts, it was Ontario and the blistering condo market in Toronto that added the biggest surprise to housing starts in March. Multiple unit starts in Ontario jumped by 50.4% to 85,200 on a seasonally adjusted annual basis — a number CMHC called “exceptional” and said could “not expected to be sustained.”

Leslie Preston, economist with TD Economics, said the jump in Ontario housing starts was probably due to a warm winter, which likely led to projects breaking ground sooner.

She said subsequent data for housing starts in Ontario, and particularly Toronto, would likely disappoint in the second quarter.

I think the risk of disappointment in construction in the second quarter is high

“If you expected a certain amount of building projects over the first half of the year, that has now likely been concentrated in the first quarter,” she said. “I think the risk of disappointment in construction in the second quarter is high.”

Economists say that despite the huge jump for Ontario in March, home construction growth will continue to be centered in the West this year, with the Prairies in particular seeing strong numbers.

“We’re anticipating continued growth in residential and real estate construction as a result of Western Canada’s economic strength,” said David Onyett-Jeffries, economist with the Royal Bank of Canada. “Looking at the Western provinces, we’re still seeing a pick up in housing start activity in Alberta, Saskatchewan, British Columbia and Manitoba.”

In contrast, Mr. Onyett-Jeffries said, housing starts in Ontario and Quebec should cool off this year.

“The activity in the housing market is certainly reflecting some of the positive growth we’re seeing in the economy,” said Richard Cho, a senior market analyst at Canada Mortgage and Housing Corp., citing an in-crease in full-time jobs, especially in the 25-to-44 demographic that often includes first-time homebuyers, and lower unemployment.

In March, according to CMHC data, there were 1,069 housing starts in the city, including 639 multi-family.

ATB economist Will Van’t Veld, pointing out that multifamily starts in March 2011 were at 126, agreed it’s a sign of confidence in the economy.

“The number for multis have been really suppressed for a while,” he added.

Cho said the boost in multifamily starts can be attributed to new apartment buildings, adding that the inventory has been dropping.

Overall, the Canadian housing market grew faster than expected in March, led by a surge in construction of multiple units that have contributed to concern about possible over building in the Toronto condo market.

CMHC said housing starts across the country rose to 215,600 units on a seasonally adjusted annualized basis in March, up from 205,300 units in February.

In Alberta, the starts were 35,500 in March on a seasonally adjusted annualized basis, 14,600 higher a year ago. Van’t Veld said the increase is greater than in Ontario, where the seasonally adjusted starts were up 13,300 at 87,500.

Heavy investment in condos in Ontario has been a concern to some, and the CMHC called the pace of multi-family starts “exceptional, and not expected to be sustained.”

Van’t Veld said at this point the Alberta market wouldn’t be considered overheated, as it was during the boom, because the anticipated wave of people moving to the province for work should put those homes in demand. He added that the annualized rate in the province is still below numbers reached at the height of the boom, when it would top 50,000.

But he also pointed out that Alberta housing start statistics are “notoriously volatile” because a strong building sector adds fuel to labour market shortages already hit by a strengthening energy sector.

© Copyright (c) The Calgary Herald