$450-million complex/casino coming downtown

The B.C. government announced their plans yesterday to develop a new $450-million retail and entertainment complex just west of BC Place downtown. It will include 2 hotels, a new casino and 5 restaurants.

Read about it and see a video HERE

Interest rates may rise sooner than expected

Bank of Canada Governor Mark Carney acknowledged today that inflation is running hotter than he had predicted, and emphasized the central bank’s commitment to containing price increases, a combination of fact and nuance that increases the odds of an interest rate increase within the next few months.

The measure of inflation the central bank uses as a guide to where overall prices are headed touched 2.1% in February, a pace the Bank of Canada was not expecting until at least the second half of 2010.

“Core inflation has been slightly firmer than projected,” Carney said in the text of his speech to the Ottawa Economics Association.

Some economists have dismissed the stronger core rate as the result of temporary factors, such as a surge in hotel costs related to the Vancouver Olympics. Carney agreed that some of the increase is the result of “transitory factors”, but also said that a “higher level of economic activity” is also playing a role, suggesting policymakers are taking the jump in the core rate seriously.

Click here to read the full article

Housing Market to stay very stong through Spring 2010

Looks like Canada's housing boom will continue throughout the Spring. The inevitability of rates rising sometime later this year, combined with historically record rates on both the variable and fixed rates have kept Canadians on the hunt for properties. Other factors include buyers hoping to get into the market before the tighter mortgage rules come into effect April 19th, and the HST in July.

Click here to read the full article

The effects of our rising Canadian Dollar

Financial experts are saying that even with the Canadian dollar hitting par with the US, it may not slow down the inevitable rate increases that are planned by the Bank of Canada later this summer.

David Rosenberg, chief economist at Gluskin Sheff + Associates says "The Bank of Canada has had ample opportunity to talk the money markets out of pricing in a series of interest rate hikes beginning this summer,"

A strong dollar, which slows down our domestic trade to the US is supposed to slow our economic recovery by keeping inflation below the target 2% rate, thus keeping interest rates low. I guess we will have to wait and see.

To read the full article click here

Young Canadians lead home buying this year

If you're between the ages of 18 and 24- you're the age group expected to lead the way in home buying this year in Canada.
This according to a new survey done by Royal Bank; they found that 15% of Canadians in this age group are very likely to buy this year, almost double that of last year. And 35% of young Canadians are intending to buy a home due to "good real estate prices and low interest rates".

Canadian Press says " It's a marked shift in the attitudes of younger Canadians, who have tightened their budgets over the past few years to cope with tough jobs markets and the recession."

Read the full article here

Sales better than expected during the Olympics

We won't know for a while what the long-term impact the Olympics will have on the housing market in the lower mainland, but real estate activity during the month of Feb was better than expected.
The Real Estate Board recorded 2,473 sales this February, almost 30% higher than January and close to double the 1,480 sales from last February.

Read the full article from the Vancouver Sun here

Bank of Canada keeps historic low rate

Bank of Canada has kept the overnight rate at the historic low of .25% (prime rate 2.25%). The key factors for the decision was positive 4th quarter growth in 2009, as well as the high CDN dollar that is keeping exports to the US very low. They don't expect a rate increase until at least July 2010. Please click the link for the full Globe and Mail article.

Click here to read the entire Globe and Mail article