You can probably handle paying an extra $49 bucks, but George Affleck points out that over the past 10 years the city budget has grown 30% while population has grown 9%.
The $1.32-billion draft 2017 budget was released late Wednesday afternoon. It includes a 3.4 per cent property tax increase and other increases for utility, recreation and permit fees.
The city says the increases will go towards greater costs for existing services that are in line with inflation and new expenditures in other areas like social housing, security and the arts.
According to the city, the property and utility fee increases will amount to an extra $49 in costs for a median homeowner in Vancouver.
Read the full article over at the CBC.
Take a look at this list:
Know what those 26 cities have in common?
They’re all Canadian for one, but they are also places where house prices have doubled or tripled over the last 15 years.
As special as Vancouver is, it’s apparently not unique when it comes to rising prices.
Thanks to Joe Mainlander for pointing this out, original data source is Toronto Condo Bubble.
The 45 basis point reduction in interest rates at the start of the year has done wonders for real estate in Canada.
The average house price is up 7% and Calgary prices have gone up by nearly double the national rate.
With the October numbers by CREA, the average Canadian home has never been worth more than it is now.
In volume terms, the actual number of homes sold rose by the same amount — seven per cent. “This marks the sixth consecutive month of stronger resale housing activity compared to a quiet start to the year, and the strongest activity for the month of October since 2009,” CREA said in a release.
October isn’t typically one of the strongest months for home buying, as activity tends to be strongest in the spring and summer.
TD Bank said in a note to clients after the CREA numbers were released that in sales terms, the housing market is hotter than it normally is this time of year.
Of course most of these gains are driven by the three cities: Toronto, Vancouver and Calgary.
Will wonders ever cease or this the economic miracle that keeps on giving?
Bank of Canada Governor Stephen Poloz says it’s a ‘bad idea‘ to raise interest rates to combat imbalances in housing and consumer debt as that would only hurt manufacturers and the general economy.
“Housing activity is showing renewed momentum and consumer debt levels are high, so household imbalances appear to be edging higher,” he said. “But it is our judgment that our policy of aiming to close the output gap and ensuring inflation remains on target will be consistent with an eventual easing in those household imbalances.”
Changes in Canada’s population justify growth in the housing market, and Toronto, Vancouver and Calgary are the only three cities showing signs of overbuilding, Poloz said at a press conference.
Canada’s dollar extended declines after the speech and as crude oil, one of the nation’s main exports, fell below $80 a barrel. The currency fell 0.9 percent to C$1.1357 against the U.S. dollar at 3:15 p.m. in Toronto.
It may be just a crazy idea, but if the government actually wanted to do something about house prices and consumer debt, wouldn’t eliminating mortgage insurance do that without any change in rates?
VMD pointed out this interesting zoomable map of assessed property value changes over the last year in Vancouver.
Anthony Smith at HealthyCityMaps created this map using BC assessment data.
At his site you can click and zoom in to see whats happened to values in different neighbourhoods.
Interesting to see how tax assessments vary from micro area to micro area.
Dark purple represents a large increase, yellow is neutral and dark orange is a large decrease from 2013 to 2014.
View the full map here.