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- ⚡Bank of Canada Cuts Key Rate by 0.25%
⚡Bank of Canada Cuts Key Rate by 0.25%
Bank of Canada finally cuts rates, Vancouver developer's fourth property is in foreclosure, and more news from across Canada.
Recap Team
June 08, 2024
Good morning!☀️
Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.
⚡Top Story
Bank of Canada Cuts Key Rate by 0.25%
The Bank of Canada cut its benchmark interest rate by 0.25% to 4.75%, the first reduction since March 2020. This move addresses inflation control, slower Q1 economic growth, and a modest rise in employment. Governor Tiff Macklem signalled potential future cuts if inflation trends continue positively.
📍British Columbia
Vancouver Developer Faces 4th Foreclosure
Align Properties faces foreclosure on a fourth Vancouver project, a land assembly at 5589-5661 Baillie Street. Amber Mortgage Investment initiated the $5.3M loan foreclosure in November 2023. The property is listed for $22M. This follows three other foreclosures: 1555 Robson, 1485 Davie, and 5812-5844 Cambie.
Greater Vancouver Sales Drop 20% in May
Greater Vancouver’s real estate market saw a 19.9% drop in May sales, with 2,733 transactions. New listings were up 12.6% from last year, totalling 6,374. Active listings rose 46.3% to over 13,000. The market is balancing, with a 20.8% sales-to-active-listings ratio. Prices rose modestly, with the composite benchmark at $1,212,000.
UBC Buys Another Property to Expand Future Surrey Campus
UBC has acquired another Surrey property near King George SkyTrain Station for $40.5 million. The new campus will include academic, residential, and commercial spaces. Aiming to serve 10,000 students, it offers collaboration opportunities with the nearby Health and Technology District. UBC has earmarked $3.4 billion for capital projects through 2040.
📍Ontario
Mississauga Developments Face Receivership Due to $363M Debt
Three Mississauga development projects at 759 Winston Churchill Blvd, 688 Southdown Rd, and 2226 Royal Windsor Dr face receivership from Kingsett Capital due to $363M debt. Rezoning issues and defaults stalled progress, casting uncertainty over the projects’ future and impacting stakeholders. The appointed receiver, KSV Advisory, will manage the assets.
Mississauga Offers Free Garden Suite Designs
Mississauga’s new initiative provides free design plans for garden suites to tackle housing challenges. Homeowners can choose from a 430 sq. ft. studio or a 600 sq. ft. one-bedroom suite, both customizable. This program promotes urban density, combats sprawl, and offers flexible housing options.
7 Towers Proposed In Bram East
TACC Construction and HBNG Holborn Group are proposing a massive mixed-use high-rise community in Brampton’s Bram East. At 4400 Queen Street East, the development includes seven towers up to 43 storeys, 2,461 residential units, retail, and office spaces. Located in a transit-rich area, it aims for transformative urban impact.
🍁National
Federal Government Launches $1.5B Co-op Housing Program
The federal government is investing $1.5 billion in co-op housing, its largest support in three decades. The new program includes $500 million in contributions and $1 billion in loans, aiming to create thousands of new co-op homes by 2028. Priority goes to Indigenous groups, women, children, and persons with disabilities.
Land Sales Cool Down in Canada
Colliers’ 2023 National Land Report reveals a return to pre-pandemic norms in the real estate market, driven by economic uncertainty and stagnant interest rates. Industrial sales fell 65%, impacting future supply. Residential land transactions dominated in Vancouver and Toronto. Calgary saw increased sales in low and medium density projects.
📅Save These Dates
June 25, 2024, 5:30am | Inflation Rate YoY
June 30, 2024 | New Provincial Zoning Regulations Deadline
July 5, 2024, 5:30am | Unemployment Rate
July 24, 2024, 6:45am | BoC Interest Rate Announcement
💭Quote of the Day
"The only limit to our realization of tomorrow will be our doubts of today."
😯Random Fact of the Day
Did you know… the Eiffel Tower can be 15cm taller during the summer? The iron structure expands when it gets hot.
You’re all caught up! Enjoy the rest of your day.✅