May 2011 Canadian Economic Fundamentals

[Ally]

Statistics Canada corrects GDP figures for 2010





Statistics Canada took the extraordinary measure Wednesday of issuing a correction to all of its provincial economic growth figures for 2010.




The federal agency said the incorrect readings in an April 28 report were caused by the implementation of a new computer system last year.




Art Ridgeway, director general of national accounts at Statistics Canada, said as a result of the new system `two steps got reversed in order and affected the weighting` process of data.



Read the full article here.

 

[Ally]

Value of Canadian farmland increases with soaring grain prices, report says





Values of Canadian farmland rose about 2% in the last half of 2010 as grain prices soared, continuing a steady increase during the past decade, according to a report by Canada's top farm lender. The increase, however, was the slowest half-year growth in more than four years, stated the report, which was released on Monday. Some of the same factors that have driven up grain and oilseed prices, such as rising incomes and population growth in developing countries, are also lifting farmland values, according to Jean-Philippe Gervais, senior agriculture economist at Farm Credit Canada (FCC). Canada is the leading exporter of spring wheat and canola and third-biggest shipper of beef and pork. For the full year 2010, the average farmland value rose about 5%.







Read the full article here.

 

[Ally]

Walkability and the new urbanism




Urban expert Christopher Leinberger has witnessed a revolution in his Washington, D.C. neighbourhood.




Ten years ago, his Dupont Circle townhouse in the historic district of the nation`s capital was worth 25 per cent less per square foot than a house in suburban Maryland or Virginia 30 minutes away. That same townhouse is worth 70 per cent more per square foot today.




Leinberger says demand for homes in urban, walkable neighbourhoods is outstripping supply in most United States cities and that for the first time since the suburbs became king in the 1960s, housing values there have fallen below those of their urban counterparts.







Read the full article here.

 

[Ally]

U.S. congress sees Canada as a stable energy source with an insecure border: Fraser Institute





The U.S. Congress sees Canada as a stable source of energy but with lax border security, according to a report by the Fraser Institute, a conservative think-tank.




The report found that members of Congress generally view Canada in a positive light when it comes to trade in energy and environmental management, with most seeing Canada as a stable source of energy imports with no indication of widespread opposition to the oilsands.




`Our analysis shows that Congress has not condemned Canada on its oilsands development or on any aspect of its intense trading relationship in crude-oil products and natural gas,` Alexander Moens, Fraser Institute senior fellow and the report`s co-author, said in a statement.



Read the full article here.

 

[Ally]

Canadian housing market resilient; U.S. not so lucky




Another day of data brought further proof of the resiliency of the Canadian housing market and the current frailty of its U.S. counterpart.




The latest bad news for American housing was a report from real estate company Zillow showing the market might have a ways to go before it bottoms out.




Zillow said existing home prices in the United States fell 3% in the first quarter of 2011 -a pace not seen since 2008, which was the worst point of the housing recession. U.S. prices have dropped 29.5% from their peak in June 2006, the company said.





Read the full article here.

 

[Ally]

Canadians pay less tax on income than in most developed countries: OECD





PARIS ` Canada was among a minority of western developed countries that didn't experience an increased tax burden on workers last year, a report from the Organization for Economic Co-operation and Development said Wednesday.







"Canada is among the OECD countries with a relatively low tax and social security burden on labour income," said the report from the Paris-based social and economic policy think-tank.







The burden of taxes and social-security charges paid by employers and employees "is lower than the OECD average for every family type (considered in the study) and the difference with the OECD average has widened over the past 11 years."



Read the full article here.

 

[Ally]

Canadian mortgage data



Interesting data out today in a report by the Canadian Association of Accredited Mortgage Professionals.


Highlights

• 22 per cent of mortgage borrowers increased their payments during the past year; 18 per cent made a lump sum payment; nine per cent did both and 27 per cent who renewed increased their payments;
• For mortgages repaid in the last 20 years, one third were paid off early;
• For the first time, CAAMP has identified that Home Equity Lines of Credit (HELOC) represent 22 per cent of all mortgages, making these lines of credit a $215 billion industry;
  On average, Canadian homeowners have $222,000 in home equity, equal to 66 per cent of the value of their homes;
  During the past year, homeowners borrowed $26 billion in additional equity from their homes. 15 per cent of homeowners withdrew equity, averaging $30,000;
  Investments (28 per cent) replaced debt consolidation (19 per cent) as the number two use of home equity takeout. Home renovations remain number one (36 per cent).

Read the full article here.

 

[Ally]

Canada can be energy superpower by 2021: CIBC vice chairman, Jim Prentice




Canada has an opportunity to be an energy superpower in the next decade but needs to take action to diversify and strengthen energy markets, Jim Prentice, Vice Chairman, CIBC told an audience at the Calgary Chamber of Commerce today.




In laying out a roadmap for Canadian energy over the next decade, Mr. Prentice identified hazards along the route and thoughts on how to navigate around them. He pointed out that the marketplace is changing for Canadian energy given a slow decline in U.S. demand for imported energy and rising demand in developing countries.





Read the full article here.

 

[Ally]

Why wouldn't I sell my home myself?




Since writing about whether you could create a bidding war without an agent, I have received numerous emails from sellers, real estate agents and companies that provide `for sale by owner` services on the pros and cons of selling by yourself.




Allison Philpot sold her home in Ottawa using a For Sale by Owner marketing service. She listed her home for $419,000, and was able to create a bidding war after her first open house. She received a top bid of $429,000, which she accepted.




The buyers seemed like nice people, as they lived in the community. Unfortunately, they later terminated the deal, relying on a condition in the offer, although Allison suspected that they just found a house that they liked better. The second bidder was no longer interested.





Read the full article here.

 

[Ally]

Public transit is the key to a sustainable city




The posters that appeared up and down Vancouver`s Cambie Street said it all: A monster-movie illustration of a giant beast ` a living collage of condo buildings pieced together in human form, towering some 40 storeys into the sky with a family of three held in its steel clutches.




The caption: `Attack of the 50 Foot Condos.`





Across the chest of the massive beast, the logo of the city`s ruling civic organization, Vision Vancouver, and on the right arm a billboard bearing the message, `We`re only in it for the money.`





Read the full article here.

 

[Ally]

Canadian unemployment rate falls to 7.6% as economy adds 58,300 April jobs



Canada added almost three times more jobs than economists forecast in April and the unemployment rate declined, suggesting the central bank will raise interest rates in the next few months.





Employment rose by 58,300 after a March decline of 1,500, Statistics Canada said today in Ottawa. The jobless rate fell to 7.6 percent from 7.7 percent, as the labor force grew by 47,400. Economists forecast no change in unemployment and 20,000 new jobs in Bloomberg News surveys that had 24 and 25 estimates. The largest estimate was for 40,000 new jobs.





Prime Minister Stephen Harper won a majority government May 2 after campaigning on his Conservative government`s record of helping Canada restore output and employment following the global recession. The Canadian dollar and bond yields rose after the report suggested the central bank will raise borrowing costs.





Read the full article here.

 

[Ally]

The fastest growing industries for 2011



Thinking of kick-starting your own small or medium-sized business, but not sure where to begin? Sageworks Inc. has compiled a list of the 10 fastest-growing industries in Canada for 2011. The data tracking company ranked the sectors based on change in sales growth and corresponding pre-tax net profit margins from 2007 to February, 2011.





Read the full article here.

 

[Ally]

Home prices climb 8% despite drop in resales





OTTAWA`The national average home price rose by eight per cent last month even as housing sales fell by 14.7 per cent from the year before, according to data released Tuesday.




National average home prices rose by eight per cent to $372,544 compared to last April ` the third consecutive month in which the national average price rose by eight per cent from year ago levels, the Canadian Real Estate Association said.




Meanwhile, the number of previously occupied homes sold in April fell to 17,230 from 18,745 a year ago.





Read the full article here.

 

[Ally]

Case asks what a seller must reveal



Are homeowners obliged to reveal to the young family buying their house that a sex offender lives across the street?




An Ontario judge recently concluded that sellers may have such a duty, giving the green light to a lawsuit that raises intriguing questions about honesty in real estate and the treatment of some of society`s most reviled criminals.




Jason Dennis and Rebecca Bound launched the suit over a house they bought in Bracebridge, Ont., last June, only to be told afterward that a neighbour opposite them had been found guilty 10 years earlier of possession of child pornography - a fact they allege was well known to everyone in the suburban enclave, including the sellers.





Read the full article here.

 

[Ally]

Don't be scared away by BRIC inflation




Brazil, Russia, India and China. Oh, those poor BRICs.







Whether it`s been ongoing inflation fears and rising interest rates or the extreme volatility in commodity prices, it`s been a pretty rough year for these four darlings of the emerging markets.







With investors running scared from all things risky these days, it may get even worse in the weeks ahead, but that doesn`t mean that all is lost for the investment play that has led the way during most of the post-financial crisis rally.





Read the full article here.

 

[Ally]

Faulty Towers: The hidden dangers of low condo maintenance fees




The three-bedroom condominium unit at 40 Panorama Ct. has everything a prospective owner on a budget could hope for ` en suite laundry, two washrooms, an eat-in kitchen and access to a parking space all for less than $150,000.




But in a city that is crazy for condos, the unit has been on the market for more than a month. Nobody is calling ` there are 17 other units for sale in the 200-unit building, and the agents trying to sell them aren`t doing any better.





Read the full article here.

 

[Ally]

Express bus corridors increasingly popular transit option




Fast, comfortable and reliable are not normally words that spring to mind when people think of bus transit.




But as the populations of cash-strapped North American cities continue to grow, express buses that travel on dedicated lanes are becoming an increasingly popular alternative to pricier transit options, such as light rail and subways.





Read the full article here.

 

[Ally]

Oil sands key factor in global pricing, head of Total says




Canada`s oil sands are playing an increasingly important role in setting the global price of crude, the head of French energy giant Total S.A. (TOT-N55.47-0.16-0.29%) says.




Triple-digit crude prices, and the soaring gasoline costs they have helped spur, have become a subject of global contention, with much of the blame being placed on unrest in the Middle East and North Africa. But Christophe de Margerie, chief executive officer of Total, said the high expense of producing crude from Canada`s oil sands is also helping to support lofty oil prices.





Read the full article here.

 

[Ally]

Rising food, fuel prices squeeze consumers




Consumers are shifting their spending as higher gasoline and food prices strain family budgets, leaving less money for discretionary items such as trips and clothes.




Households will face even tougher spending choices in the months ahead as an expected hike in interest rates takes yet another bite out of their finances.





Read the full article here.

 

[Ally]

Dog-friendly policy fetches tenants



Dogs will be howling to get into this place.





A Toronto-based apartment building management company has Halifax hounds wagging their tails about a new dogs-allowed policy at one of the city`s larger downtown rental complexes.





"We were surprised when we came to Halifax last year to learn there were just about no apartments available in the city that permitted dogs," said Jessica Green, marketing director with Greenwin Properties Ltd., in an interview Friday.





Greenwin Properties believes dogs are good for business, she said.





Over the past few weeks, the company has welcomed dog owners to the Ocean Towers complex at 2334 Brunswick St.





Read the full article here.