August 2014 Canadian Economic Fundamentals

[Ally]

CMHC's forecast indicates a soft landing for the housing market





OTTAWA, ONTARIO -- (Marketwired) -- 08/13/14 -- According to CMHC's third quarter 2014 Housing Market Outlook, Canada Edition1, housing activity will continue to be supported by economic and demographic fundamentals for the rest of 2014 and into 2015.





"Recent trends have shown an increase in housing starts, which is broadly supported by demographic fundamentals. However, our latest forecast calls for starts to edge lower as builders are expected to reduce inventories instead of focussing on new construction," said Bob Dugan, Chief Economist for CMHC.





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[Ally]

Canada adds 42,000 jobs in revised StatsCan report





The Canadian economy created 42,000 jobs in July ` not 200 as mistakenly reported last week by Statistics Canada ` as revised numbers beat market expectations.





The unemployment rate declined 0.1 percentage points to 7 per cent. The Canadian dollar gained on the news.





The release of a revised Labour Force Survey comes after the federal agency took the unprecedented move Tuesday of pulling its monthly Labour Force Survey that had been released last Friday. The agency had said it uncovered an error but had declined to quantify the mistake or offer much of an explanation until Friday morning.





Read the full article here.

 

[Ally]

The battle of Alberta





EDMONTON ` In the ongoing battle of Alberta, Edmonton is coming out on top when it comes to getting the most bang for your buck in square footage.





New numbers show the average home price in Calgary is significantly more than here in Edmonton. And, that price gap is only widening.





Read the full article here.

 

[Ally]

Home prices up 1.1% in July





In July the Teranet-National Bank National Composite House Price Index` was up 1.1% from the previous month. It was the first time in five months that the monthly change in the composite index exceeded the historical average for the month in question. Prices were up on the month in 10 of the 11 metropolitan markets surveyed. The gain exceeded the countrywide average in five markets: Victoria (+3.5%), Ottawa-Gatineau (+2.0%), Toronto (+1.8%) and Quebec City and Hamilton (+1.6%). It lagged the average in Edmonton (+1.0%), Halifax (+0.7%), Calgary (+0.6%), Montreal (+0.5%) and Vancouver (+0.2%).





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[Ally]

Winners and losers in Canada's housing market





Canada Mortgage and Housing Corp. released a new forecast this week that was more bullish about Canadian prices, sales and construction than its prior forecast in May. But the national figures meld together very different markets from coast to coast. Here`s a regional breakdown of what CMHC is expecting.





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[Ally]

Soft landing still likely for Canadian condo market





TORONTO, Aug. 13, 2014 /CNW/ - Population, economic and employment growth all point to a stabilizing of the Canadian condominium market, according to the latest Conference Board of Canada condo report commissioned by Genworth Canada. The Summer 2014 Metropolitan Condo Outlook forecasts that while pockets of higher risk still exist in Toronto and Vancouver, a broad-based downturn is unlikely.





"The report findings align with our view that the condo market is stabilizing and that demographics and affordability continue to drive demand" said Stuart Levings, Chief Operating Officer of Genworth Canada. "As a result of our prudent underwriting standards, our portfolio quality in this market remains strong and we see value in partnering with our customers to meet the evolving needs of young urbanites.





Read the full article here.

 

[Ally]

CMHC says 'soft landing' expected for the housing market





Canada's national housing agency says it expects builders to stop making as many new homes and focus on selling the ones they've already built.





The Canada Mortgage and Housing Corporation`s latest quarterly forecast predicts lower sales volumes for 2015, with 163,000 to 203,200 homes expected to be built. The lower end of that forecast is below the 179,600 to 189,900 new homes expected by the end of this year.





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[Ally]

Real estate to crash? Not by these yardsticks






The doom and gloom stories have started again about the Canadian real estate market. Here are some signs:







` Canadians debt to income ratio is at 160 per cent, which means we have $1.60 of debt for every $1 of income;







` Canadian real estate is 20 per cent overvalued;





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[Ally]

Housing sales in July highest since early 2010





Sales of existing homes rose for the sixth month in a row in July, hitting their highest level since March 2010, as some of the country`s softer real estate markets sprung to life.





Cities such as Montreal, Ottawa, Victoria, Winnipeg and Halifax received a sales boost from June on a seasonally adjusted basis, even as activity softened in Toronto, Calgary and Vancouver.





Read the full article here.

 

[Ally]

Job report error leaves StatsCan with 'black eye'





Canada`s statistics agency said it had under-reported the country`s job creation in July by more than 41,000, a revision that one private economist called a `black eye` that raises questions about the bureau`s competence.





Employment rose by 41,700, Statistics Canada said Friday, three days after it retracted its initial estimate of 200. The unemployment rate wasn`t affected, falling to 7.0 percent from 7.1 percent in June. Staff failed to run a computer program that is part of a scheduled update to the survey, leaving uncounted workers who should have been classified as full-time employees, the Ottawa-based agency said.





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[Ally]

Healthy Canada jobs, factory data spur optimism on economy





OTTAWA (Reuters) - Canada reported unexpectedly healthy jobs and manufacturing sales data on Friday, boosting market optimism that the sluggish economy might finally be starting to accelerate.





Despite a recovery in the United States, Canada's main trading partner, the Canadian economy has been creating few jobs and has been operating well below full capacity.





Read the full article here.

 

[Ally]

Canada's highest salary increases found in the oilpatch





CALGARY -- For the biggest pay hikes in Canada, look no further than the oilpatch.





The energy sector continues to lead the country in both actual and projected salary increases, according to survey released Monday by global consulting firm Mercer.





The average base salary increase across the country is expected to be three per cent next year, the same as in 2014.












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[Ally]

Homebuyers turn to less pricey bungalows in hot markets





When Parambir Bhangu and wife Tracey went searching for a new house to replace their awkwardly designed townhome in Vancouver`s Kitsilano neighbourhood a couple of years ago, they drew up a homebuyer`s wish list.





Their next place had to be renovated and near good schools, feel private, be within walking distance of shops, and in the ballpark of an affordable $1.2-million. (Put down your coffee, dear reader in Thessalon, Ont. Don`t choke.) By Vancouver standards, they wanted the moon.





Read the full article here.

 

[Ally]

Loonie up amid solid housing data





TORONTO - The Canadian dollar closed higher Monday amid strong domestic housing data and a greater willingness to take on risk, even as traders kept a close watch on geopolitical flashpoints.





"A volatile global environment, with some easing in concern over Ukraine offset by an escalation in Iraq, is being watched carefully by markets," observed Camilla Sutton, Chief FX Strategist, managing director for Scotiabank Global Banking and Markets.





Read the full article here.

 

[Ally]

Existing home sales in Canada rise for sixth straight month in July





TORONTO ` Sales of existing homes in Canada rose in July to their highest level since March 2010, notching their sixth straight monthly increase after a slow winter, the Canadian Real Estate Association (CREA) said on Friday.





CREA, the industry group for real estate agents, said sales were up 0.8% last month from June, surpassing June`s downwardly revised 0.6% increase. Actual sales for July, not seasonally adjusted, were up 7.2% from July 2013.





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[Ally]

Wholesale sales up 0.6% to $53 billion in June





OTTAWA - Statistics Canada says wholesale sales rose 0.6 per cent to $53 billion in June, a third consecutive increase.





The agency says gains in five subsectors more than offset a drop in the motor vehicle and parts subsector.





Economists had expected a gain of 0.4 per cent, according to Thomson Reuters.









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[Ally]

Survey shows 80% of renters under 50 desire home ownership





The vast majority of Canadian renters under the age of 50 would like to own a home, a new survey has found.





Only about 20 per cent of those surveyed by real estate firm Altus Group Canada said they actually chose renting for the lifestyle or because they didn`t want the responsibility of owning a home. Two per cent said they didn`t think buying a home was a good investment. And most ` nearly 80 per cent ` said they would like to buy but were holding back for a variety of reasons including saving for a down payment, fears about qualifying for a mortgage, or a sense that now is not the right time to buy (about 14 per cent said they don`t think it`s a good time given the economy).





Read the full article here.

 

[Ally]

Rise of part-time work no reason to worry, TD says





The rise in part-time employment is nothing more than a pullback after companies hired more full-time workers than they needed coming out of the recession, one of Canada's largest banks said Thursday.





Economists Randall Bartlett and Derek Burleton wrote in a research note that there's no reason to be concerned about the recent trend.





Read the full article here.

 

[Ally]

Inflation rate drops to 2.1% in Ottawa and across the country





The country's inflation rate dropped from 2.4 per cent, according to Statistics Canada.





The agency says prices were higher in all 12 categories it looks at, with shelter costs leading the way, up 3.0 per cent in July, higher than the 2.9 per cent increase seen in June.





Read the full article here.

 

[Ally]

More parents buying units for university-bound children


Unless you`ve had your head in the sand, you know it`s almost September, thanks to stores advertising pencils and notebooks, fall clothing and back-to-school discounts. While many might feel summer has barely started, it`s true that fall is closing in on summer`s heels. And as many university students prepare for the fall semester, their parents are considering student housing options.





Those who live within an easy commute of school have the most options.





Read the full article here.