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Alberta Voters Reject Push for Separation Referendum

  Alberta voters have delivered a clear message: the province should  remain part of Canada. Early results from Monday’s referendum show about 76% supported remaining in Canada, while roughly 23% backed starting a legal process that could lead to a future vote on separation. The vote was not a direct decision on whether Alberta should become an independent country. Instead, voters were asked whether Alberta should remain a Canadian province or begin the constitutional process required to hold a binding referendum on separation. What the Results Mean The result is a setback for Alberta’s separatist movement and a boost for supporters of Canadian unity, including Prime Minister Mark Carney. Alberta Premier Danielle Smith had called the referendum amid pressure from separatist advocates, although she has said she supports Alberta remaining in Canada. The result is still unofficial. Elections Alberta is continuing its verification process, with the official announcement scheduled...
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Toronto home prices drop as affordability and interest rates bite

 

Toronto’s housing market cooled down in November as higher borrowing costs and inflation pressures dampened demand and lowered prices. According to the latest data from the Toronto Regional Real Estate Board (TRREB), the seasonally adjusted average home price fell 2.2% in November from October to C$1,104,062 ($815,769), marking the fourth decline in the last five months.

The average price was also down 18.9% from the record high of C$1,361,779 reached in February 2022, when the market was fueled by low interest rates, limited supply, and strong buyer appetite. Compared to November last year, the average price was up a modest 0.3%.

“Affordability has been a key issue in the GTA housing market this year. Inflation and elevated borrowing costs have taken their toll on affordability. This has been no more apparent than in the interest rate-sensitive housing market,” TRREB President Paul Baron said in a statement.

The Bank of Canada has raised its benchmark interest rate four times this year to 5%, a 22-year high, in an attempt to curb inflation that has soared to 4.7% in October, the highest level since 2003. The higher rates have increased the cost of mortgages for home buyers and reduced their purchasing power.

However, some relief may be on the way, as money markets are betting that the central bank will pause its tightening cycle and start cutting rates as soon as March 2024, amid signs of slowing economic growth and easing inflation pressures.

“Bond yields, which underpin fixed rate mortgages have been trending lower and an increasing number of forecasters are anticipating Bank of Canada rate cuts in the first half of 2024,” Baron said.

Meanwhile, home sales in the GTA edged higher for the first time in six months, rising 1.7% in November from October to 4,932 homes, on a seasonally adjusted basis. However, sales were still down 6% from November last year, reflecting the impact of the pandemic and the policy measures on the market activity.

New listings also increased 16.5% year-over-year in November, but at a slower pace than the 38% surge in October, indicating that some sellers may be holding back in anticipation of better market conditions.

TRREB said that despite the recent slowdown, the GTA housing market remains fundamentally strong, supported by solid population growth, improving labour market, and low inventory levels. The board expects the market to regain momentum in 2024, as the economy recovers from the pandemic and the interest rates stabilize.

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