March 2013 Canadian Economic Fundamentals

[Ally]

Canada housing rate-of-return predicted to remain lackluster for whole decade




TD Bank, one of the largest banks in Canada, has recently published a research paper that reports that the decade long bloom of Canada`s real estate market has come to an end. While the revelations made in the paper are alarming, mortgage expert Marcus Arkan, CTO of Syndicate Mortgages, sheds light on its various aspects and explains how it will affect home owners and prospective buyers in Canada.




The paper by TD was published on 11th March, 2013. Major heralds including The Star also covered the story this week. The Star reported that TD predicts a `lackluster` two percent annual ROR over the next decade. However, the report states that Toronto and Vancouver markets are likely to perform better than the national average.



Read the full article here.

 

[Ally]

Number of people on EI down 1.6% in January




OTTAWA - Statistics Canada says the number of people receiving regular employment insurance benefits edged down 1.6 per cent in January to 531,100.




The agency says most provinces had fewer beneficiaries in January, with the largest percentage decreases occurring in Newfoundland and Labrador, New Brunswick, Alberta and Manitoba.





Read the full article here.

 

[Ally]

Ottawa to limit taxpayer's exposure to mortgage market




Finance Minister Jim Flaherty is stepping into Canada`s mortgage insurance market once again.




In the federal budget tabled Thursday, Ottawa announced further steps to limit taxpayers` exposure to the mortgage market by cracking down on banks` ability to use bulk mortgage insurance as a tool to offset their risks and boost their bottom lines.



Read the full article here.

 

[Ally]

Housing market continues to face challenges






TORONTO, March 21, 2013 /CNW/ - For the first time in many months, sales of new detached, semis and townhomes in the GTA outperformed those in the new condominiums in February, the Building Industry and Land Development Association (BILD) announced today.




According to RealNet Canada Inc., BILD's official source for new home market intelligence, new home buyers purchased 2,030 new homes and condominiums in the GTA in February. The 1,078 low-rise sales add up to the second-lowest February on record, despite outperforming the high-rise market which tallied 952 sales.





Read the full article here.

 

[Ally]

Alberta's population growth is best in the west




I







t`s been a trend for decades now and last year the number of people sprinting west became a full-scale stampede. While population growth among the ten provinces varies, the fastest growing region is decidedly the Prairies`with Alberta well in the lead. According to the latest population estimates from Statistics Canada, our province`s population stood at 3.931 million as of January 1, 2013. Ontario is still by far the largest province in the country with 13.56 million. Quebec (8.1 million) and British Columbia (4.6) follow in secondmand third.







Read the full article here.

 

[Ally]

Oil key to beating deficit




The Conservative government's push to export oil and natural gas to more markets outside of the United States could add more than $4 billion a year to government coffers, but only if commodity prices rebound.




The figure contained in the federal budget, along with veiled references to the contentious Keystone XL pipeline project, underscores the federal government's interest in selling Canadian oil because doing so successfully - and at the right price - could reduce the budget deficit faster than promised.



Read the full article here.

 

[Ally]

Best place to invest in property in Canada in 2013




Looking forward to 2013, the investors will see the housing market as the best place to invest their money into it. The Canada`s real estate industry continues to do well irrespective of the recent happenings and changes the economy has witnessed. Despite the uncertainties, Canada is expected to see good housing market surge this year. Identifying regions for property investment is vital; this needs extensive industry research.




Based on key fundamental research report, the market analyst measures the performance of key indicators, explaining the reasons behind such change. So, it is time for the investors to choose the target real estate market wisely. A thorough analysis and correct choice of the market can offer the excellent benefits the investor desires. It is critical time, considering the best investment for time of economic turbulence. With a practical eye and non emotional outlook, it`s time for the investors to judge the investment alternatives and decide the best place to invest in property for 2013.





Read the full article here.

 

[Ally]

Calgary tops CREA list for real estate price growth in Canada





The Canadian Real Estate Association released their MLS Home Price Index report this past Friday. In it, Calgary came out on top for the largest annual price increase in February. But, the city also saw a decline in the number of MLS sales. That decline was at the two percent level, a far cry from the national average of almost 16 percent when comparing February of this year to that of 2012.







The association also released its updated sales forecast for 2013, both for the national and Alberta markets. CREA did note that Calgary`s price growth did show an 8 percent increase comparing this February to last. The agency noted this was the strongest price showing since the spring sales of 2010. Regina came in second, with a 5.93 percent increase.





Read the full article here.

 

[Ally]

Slowdown in Canadian housing activity well underway: Scotiabank economist




CALGARY ` The long-anticipated slowdown in Canadian housing activity is well underway, says Scotiabank`s senior economist.




In the latest Global Real Estate Trends report, Adrienne Warren, the bank`s real estate specialist, said home sales have dropped more than 10 per cent from last spring, and are now running below historical averages in most major cities.





Read the full article here.

 

[Ally]

Lumber prices skyrocket due to stronger housing markets and tight supply




MONTREAL ` North American lumber prices have increased by 60 per cent since late 2011 on an improving U.S. housing market and elevated demand from Asia, an international forestry consulting firm says.




Wood Resources International says the random length lumber price index peaked in February while the price of sawlogs in the western United States has continued to increase early in 2013 after ending 2012 at a five-year high.





Read the full article here.

 

[Ally]

U.S. senate endorses construction of Keystone XL pipeline from Alberta to Texas




WASHINGTON - The U.S. Senate has endorsed construction of the proposed Keystone XL pipeline that is to carry oil from Canada to Texas oil refineries.




Senators voted 62-37 on Friday for the nonbinding measure. Seventeen Democrats and all 45 Republicans voted yes.





Read the full article here.

 

[Ally]

Boomers, Gen Yers prefer houses over condos





Nearly half of the baby boomers who plan to move will buy another home that is similar in size or larger than their current home, a new Royal LePage Real Estate survey shows. Many members of Generation Y looking to buy a home also said they plan to buy either a multi-storey house or a bungalow.

The survey by Leger Marketing found that just 22.9 per cent of boomers ` born between 1947 and 1966 ` and 15.7 per cent of Generation Y ` born between 1980 and 1994 ` plan to buy a condominium or apartment. Single-family homes are still the preferred type of housing, the survey shows.





Read the full article here.

 

[Ally]

5 reasons not to store your money under your mattress




With recent events in Cyprus topping the headlines this week, it has to make you wonder if you`re not better off just putting your hard-earned savings under your mattress.





I can think of at least five reasons to the contrary.






Read the full article here.

 

[Ally]

Rogers to step into the real estate business





Rogers Communications is expanding into the real estate business.






The mobile and cable giant has applied to become a licensed real estate brokerage right across Canada and is aiming to relaunch its five-year-old website Zoocasa.com in May as a unique, one-stop-shopping site for homebuyers.






Read the full article here.

 

[Ally]

Canada's budget pinches small business owners's profits, dividends




While the 2013 federal budget seeks to bolster training and hiring through measures such as a new job grant, it also includes tax measures that will pinch small-business owners.




One of them is reforms to the dividend tax credit, which are expected to add $2.34-billion to Ottawa`s revenues over five years.



Read the full article here.

 

[Ally]

The 'great unoccupied condo scandal'? Get over it




When a report surfaced this week suggesting nearly a quarter of the condos in some areas of Vancouver sit empty or are occupied by non-residents, it elicited a predictable response.




In the minds of many, the study by University of B.C. planning professor Andrew Yan confirmed their worst suspicions: the city`s real estate market had become a refuge for foreign investment, mostly from China. This was responsible for driving up the cost of housing and contributing to a certain soullessness in Vancouver.



Read the full article here.

 

[Ally]

Inner-city real estate prices 'skyrocketing' thanks to Walkability




CALGARY ` Proximity to amenities ` an area`s accessibility ` has become one of the key determinants of a residential property`s value, according to the Real Estate Investment Network.




And a neighbourhood`s `walkability` to those amenities is becoming increasingly more important to potential homebuyers.





Read the full article here.

 

[Ally]

Flaherty's thrifty budget keeps Canada worthy of top credit rating in G7




Finance Minister Jim Flaherty safeguarded Canada`s status as the only Group of Seven country with a stable top credit rating after releasing a fiscal plan that eliminates the country`s deficit in two years.




Flaherty`s budget presented Thursday projected Canada will swing to a surplus of about $800 million ($781 million) in the fiscal year that begins April 2015, from a $25.9 billion deficit in the year ending this month, by limiting spending growth to the slowest pace since the 1990s and banking on an accelerated recovery. Moody`s said in a statement the budget is in line with the government`s Aaa bond rating.





Read the full article here.

 

[Ally]

Growing proportion planning to buy homes are first timers




TORONTO -- The number of Canadians expecting to buy a home within two years has dropped dramatically even though overall confidence in real estate remains strong, according to an annual survey published Tuesday by Royal Bank of Canada.




The poll found 15 per cent of those surveyed said they were likely to buy in the next two years, a drop from 27 per cent of respondents in last year's survey.





Read the full article here.

 

[Ally]

When buying a home, a 5% down payment is barely enough




How much skin should you have in the game if you want to buy a home? Is 5% enough?




That`s what the government says, although there is plenty of discussion about getting consumers to plunk down more before they are eligible to buy a house with a loan backed ultimately by the Canadian taxpayer.





Read the full article here.