Posts Tagged ‘moncton’
[URBAN NOTE] Five city links: Ottawa, Moncton, New York City, Calgary, Richmond
- The Ottawa Citizen reports on the first week of the Confederation Line LRT.
- The New Brunswick city of Moncton now has new affordable housing–20 units–for vulnerable people. Global News reports.
- CityLab looks at one photographer’s perspective of the New York City skyline, changed by the 9/11 attacks.
- An alleyway in Calgary is being transformed by art. Global News reports.
- Birth tourism might become an election issue in the British Columbia city of Richmond. Global News reports.
[URBAN NOTE] “In many Canadian cities, unsold condos are stacking up”
Tamsin McMahon’s article in The Globe and Mail noting how the condo boom is starting to bust in Canada outside of Toronto and Vancouver makes for worrisome reading. What will happen to the Canadian economy?
When the federal government tightened mortgage rules in 2012, overheated condo markets in Toronto and Vancouver were widely seen as the main target. But little more than two years later, it’s many smaller cities that are bearing the brunt of stricter regulations.
Winnipeg, Montreal and Moncton are grappling with a surplus of unsold condo units driven by a surge in new construction and a dwindling supply of first-time buyers in the wake of Ottawa’s decision in June, 2012, to limit mortgage insurance to amortization periods of 25 years or less from 30 years.
[. . .]
The downturn has been most painful in Quebec, where the boom in condo construction started in 2011 and 2012 as young buyers, armed with cheap mortgages, flocked to the housing market.
Roughly a third of Quebec buyers had taken out mortgages with 30-year amortizations – and that number rose to 40 per cent in Montreal, Mr. Cardinal said. He calculated that the change was the equivalent of raising interest rates by one percentage point.
Similar problems have plagued markets such as Moncton and Halifax, according to a recent housing market forecast from Re/Max. In Regina and Saskatoon, the number of unsold housing units hit a 30-year high, Canadian Mortgage and Housing Corporation said, the majority of them condos.
Winnipeg has also seen a surge of new condo construction since 2012 as builders rushed to cater to new immigrants under Manitoba’s provincial nominee program and retirees looking to downsize and spend their winters down south.