June 2013 Canadian Economic Fundamentals

[Ally]

Big increase in Canadian building permits




OTTAWA ` Canada's housing market continues to confound in its resilience in the face of forces that point to a correction from sky-high levels.




Statistics Canada reported Wednesday that building permits jumped 10.5 per cent in April ` 21 per cent on the residential side ` a shock to economists that had expected an overall three per cent decline.





Read the full article here.

 

[Ally]

Scotiabank sees 'downside risk' in Canada's housing sector




TORONTO - Housing prices in Canada have been relatively flat so far this year but there's a "downside risk" going forward, particularly in the country's largest city, according to a Scotiabank report issued Friday.




"Toronto`s housing market is correcting in the wake of affordability pressures, inventory build, changes to mortgage insurance rules and more cautious lending policies," writes Scotiabank economist Adrienne Warren.





Read the full article here.

 

[Ally]

Why are home prices so high and will they fall?




A recent report from the Organization for Economic Co-operation and Development that revealed Canada has the third most overvalued real estate in the developed world offered few surprises for analysts who say the market is heading for a price correction.




Many say the signs are already evident ` home sales are slumping, demand is down and housing prices will likely follow suit. As for when, how far or how hard prices will fall, that still remains a guess.





Read the full article here.

 

[Ally]

Bull, bear, or pragmatic - how you label yourself will determine your results




For 20 years, the Real Estate Investment Network, through our research arm Cutting Edge Research Inc., has been providing investors from across the globe with insights, tools and analysis on the North American real estate market.




In my position as researcher, analyst, consultant and investor I have the opportunity to speak with many economists, sovereign and family wealth fund representatives, major financiers, REITs and international bankers. In fact, on my frequent journeys to Europe, these conversations play a major role in my fact finding missions.





Read the full article here.

 

[Ally]

Canada's job growth biggest in 11 years





OTTAWA ` Canada`s unpredictable labour market delivered another big surprise in May, piling on 95,000 jobs ` the biggest monthly jump in 11 years ` and pushing the unemployment rate down to its lowest level in four months.




Most of the new jobs last month were full-time positions, and nearly all created in the private sector, Statistics Canada said Friday. The unemployment rate declined to 7.1% ` matching the level in December 2012 ` from 7.2% in April.





Read the full article here.

 

[Ally]

Scotiabank warns Canada's housing market isn't out of the woods yet




TORONTO ` Housing prices in Canada have been relatively flat so far this year but there`s a `downside risk` going forward, according to a Scotiabank report.




In particular, Scotiabank`s quarterly study on global real-estate trends says Toronto`s housing market is seeing slower sales and construction.




It says Toronto residential real estate prices are also beginning to level out ` especially in the condominium market where there`s an ample supply.





Read the full article here.

 

[Ally]

RBC mortgage rates to rise on Monday





TORONTO ` Royal Bank of Canada says the interest rates it charges on a range of mortgages will go up on Monday.







Read the full article here.

 

[Ally]

Canadian condos set for one last hurrah





Canadian building permits unexpectedly rose in April led by multiple-unit housing in Vancouver, a market that officials have said shows signs of overbuilding fuelled by record consumer debt.



Despite drop in home building, the bank sees worrying signs of overbuilding, particularly of condos in big cities. Read more





The value of municipal permits rose 10.5% to $6.96 billion, following a revised 6% rise in March, Statistics Canada said Wednesday in Ottawa. The gain was the fourth in a row, the longest streak of increases in a decade. Economists forecast a 3% decline in April, according to the median of 11 responses to a Bloomberg survey.





Read the full article here.

 

[Ally]

Canadian economy roars back with 95,000 jobs created




OTTAWA ` Canada`s economy finally came out of hibernation last month, pumping out a whopping 95,000 new jobs ` the vast majority full-time ` in the biggest month of employment growth in more than a decade.




The monthly employment report report released by Statistics Canada Friday found that 18,600 of those jobs were created in Alberta last month, driving the province`s year-over-year job creation tally to 48,800.





Read the full article here.

 

[Ally]

How - and where - Canada's 1% live





Keeping up with the Jones` has always been a rite of passage for many homeowners. When your next-door neighbours pave their driveway, you put in cobblestone; when you put in a fountain, they put in a pool. But take a trip down the Bridle Path neighbourhood in Toronto and you`ll quickly discover keeping up with the Jones` means bulldozing the old mansion and rebuilding another with an extra six rooms in mind. Welcome to Canada`s richest neighbourhood.





Read the full article here.

 

[Ally]

Unemployment rate for Canadian provinces and major cities





Statistics Canada released seasonally adjusted, three-month moving average unemployment rates for major cities but cautions the figures may fluctuate widely because they are based on small statistical samples.





Read the full article here.

 

[Ally]

Harper pushing made-in-Canada pipeline




OTTAWA ` Prime Minister Stephen Harper is backing a plan to send oil to Canada`s eastern provinces from Alberta as the Obama administration decides whether to allow construction of the Keystone XL pipeline.




Harper met Canadian oil-industry executives in Calgary in early April to build support for a plan by TransCanada Corp. to ship crude to Saint John, N.B.



Read the full article here.

 

[Ally]

Canadian oil output to rise




EDMONTON - Canada`s oil production will hit a record 6.7 million barrels per day by 2030, the Canadian Association of Petroleum Producers said Wednesday, increasing its estimate from last year by 500,000 barrels per day.




Almost all the oil will come from Western Canada, with Alberta`s oilsands producing 5.2 million bpd and the rest coming mostly from Alberta and Saskatchewan conventional and tight oilfields.





Read the full article here.

 

[Ally]

Tax-payer free housing finance change coming to Canada




The Bank of Nova Scotia, a few days ago, received permission from the Securities and Exchange Commission to market to U.S. retail investors what are known as covered bonds. In pursuing SEC approval for market access, Scotia was following a trail blazed by the Royal Bank of Canada; market rumour has it that the Bank of Montreal is on the same path.





Read the full article here.

 

[Ally]

RBC to step up mortgage rates today




TORONTO ` One of Canada`s biggest mortgage lenders says many of its rates are going up Monday.




Royal Bank of Canada says the increases will range from one-tenth to two-tenths of a point, depending on the type of mortgage.





Read the full article here.

 

[Ally]

Economist says housing prices at risk to fall




Canadian housing prices are at risk of falling over the next few years, driven by global economic weakness and softness in key condo markets, a Scotiabank economist said Friday.




Adrienne Warren said a single-digit decrease by mid-decade would represent a soft landing that many observers have predicted.





Read the full article here.

 

[Ally]

Canada's housing market to correct into mid-decade: Scotiabank






Canadian housing prices are at risk of falling over the next few years, driven by global economic weakness and softness in key condo markets, a Scotiabank economist said Friday.




Adrienne Warren said a single-digit decrease by mid-decade would represent a soft landing that many observers have predicted.





Read the full article here.

 

[Ally]

Housing still booming? Residential construction leaves economists slack-jawed




OTTAWA ` Canada`s unpredictable labour market delivered another huge surprise in May, piling on 95,000 jobs ` the biggest monthly gain in 11 years ` and trimming the unemployment rate to its lowest level in four months.





Read the full article here.

 

[Ally]

Should you take May's job bonanza with a grain of salt?





OTTAWA ` Canada`s economy churned out a spectacular 95,000 jobs in May, the second-biggest gain in 37 years, according to an official report that raised hopes the economy is gaining momentum, but was also taken with a grain of salt.


Read the full article here.

 

[Ally]

Home building surge signals soft landing for housing market




TORONTO ` Canadian housing starts jumped much more than expected in May from April, the Canada Mortgage and Housing Corp said on Monday, in the latest sign that the broader economy is gaining momentum in the second quarter.





Read the full article here.