June 2012 Canadian Economic Fundamentals

[Ally]

Canadian auto sales in 'full swing'





Despite the uncertainty in the broader economy, Canadian auto sales are expected to return to their pre-recession levels this year driven by dealer incentives, accessible auto loans, high fuel prices and aging vehicles that need replacement, according to a report from the Conference Board of Canada.




Canadian motor vehicle manufacturers are expected to swing to a collective profit of $1.5-billion this year, their highest level since 2002 and a complete reversal of the $1.5-billion they lost as recently as 2009, the board reports.






Read the full article here.

 

[Ally]

Flaherty says action on mortgages necessary






OTTAWA ` Finance Minister Jim Flaherty says he realizes tightening mortgage rules could slow economic growth and cool the housing market, but that he`s prepared to take the risk.




Flaherty says he took action last week because there was no sign of a let-up in the hot condo market in major cities and because many Canadians can`t seem to resist the lure of low mortgage rates.





Read the full article here.

 

[Ally]

Thinking of renting that basement suite? Tips for first-time landlords





When my husband and I were shopping for a home, a basement apartment seemed like a no-brainer.




House prices in downtown Toronto were already sky-high, so we loved the idea of someone paying us $800 a month to live in a space we could do without. We knew we`d have to find tenants, fix leaky taps, spruce the place up, and comply with various bylaws, but these seemed like tasks we could easily deal with in order to buy in the neighbourhood we wanted and become mortgage-free sooner.






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[Ally]

Persistent low rates drive short-term mortgage rates





Yields on overnight index swaps (OIS) show that traders are betting more on a rate cut than a rate hike in the next year.




Take your pick of their reasons: modest inflation, risk from the European debt saga, Canadian mortgage rule impact, lacklustre North American growth, et cetera.




These and other factors are keeping a lid on rate expectations, despite Mark Carney`s intentional hints otherwise.





Read the full article here.

 

[Ally]

Canada's employment momentum slows in May






The Canadian economy`s ability to keep generating jobs was put the test in May, with employment gains slowing sharply to 7,700 after two straight months of massive increases.




Last month`s more tame result was not altogether unexpected, given the country`s economic growth rate slipped below two per cent in the first quarter.





Read the full article here.