August 2014 Canadian Economic Fundamentals

[Ally]

Average Canadian household net worth grew significantly in recent years relative to U.S. levels





The household net worth per capita in Canada has increased substantially in the last seven years relative to levels seen in the United States, according to a new Statistics Canada study.











Between 1974 and 2006, Canadian household net worth per capita averaged around 60% of that seen in the average U.S. household. However, after 2007, U.S. levels dropped significantly, leading to Canadian household net worth reaching 77% of that of American households by 2012.





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[Ally]

Bank of Canada won't follow Fed's lead interest on rates, Poloz says





Bank of Canada Governor Stephen Poloz wants to make something perfectly clear: When the Federal Reserve starts raising interest rates, Canada`s central bank won`t necessarily follow immediately.





`The main thing people should understand is that our policy is quite capable of being fully independent, as it has been these past few years,` Poloz said in an interview at the annual gathering of central bankers and economists at Jackson Hole, Wyo., over the weekend.





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[Ally]

Canada's limp job market leaves plenty of time to keep interest rates low, says BoC's Poloz





Bank of Canada Governor Stephen Poloz said the central bank has scope to keep interest rates near historic lows even if employment picks up.





Speaking in an interview Aug. 22 on the sidelines of Federal Reserve Bank`s annual symposium in Jackson Hole, Wyoming, Poloz said persistent slack in the country`s labor market and a tendency toward part-time job creation has restrained income growth in the world`s 11th-largest economy.





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[Ally]

Anchor tenant the key to attracting other businesses





For most commercial landlords, no matter what size of space they are aiming to lease, their main objective with their tenants is to sign a deal with minimum flexibility for as a long a term as possible.





Needless to say, landlords require a steady cash flow, for a long time.













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[Ally]

Private investors scooped up more Canadian real estate than pension funds did in Q2





Private buyers squeezed out pension funds in the commercial real estate market during the second quarter, according to a new report.





CBRE Ltd, a real estate company that provides data on the market, said despite the strong interest from private investors, the dollar volume of investment activity dropped sharply from a quarter earlier.





Read the full article here.