May 2013 Canadian Economic Fundamentals

[Ally]

House values near transit outperform


Homes near public transit retained their value better during the recession than their counterparts in auto-dependent areas, according to a recent study. What`s impressive is the extent of it: In five metropolitan areas`Boston, Chicago, Minneapolis-St. Paul, Phoenix, and San Francisco`residential property values performed 42 percent better on average if they were located near public transportation with frequent service.







Read the full article here.

 

[Ally]

Just how low will mortgage rates go?




When the Bank of Montreal dropped its key mortgage rate below the 3% threshold in March, Paula Roberts started to get calls from her clients. They wanted to know if they should break their mortgages and refinance at BMO's limited-time, bargain-basement 2.99% rate-the lowest rate ever officially offered by a Canadian bank for a five-year, fixed-rate mortgage. The sudden surge in interest baffled the Toronto mortgage broker. After all, these were clients who were already locked into mortgages with even lower rates and better terms than BMO's. "All of our lenders were at lower than 2.99% at that point," Roberts said.




It's an open secret that Canadian homebuyers can secure mortgages on the cheap these days. BMO simply advertised the kind of lending practices that were already widespread. But stating the obvious got the bank plenty of attention-from media, from Canadian borrowers and from the federal government.





Read the full article here.

 

[Ally]

Priced to sell at Canadian retailers: their real estate holdings




Canadian retailers have been putting a new product on their shelves ` their land ` and we should thank them for it.




Canadian Tire Corp. is the latest company to announce that it is spinning off its property holdings, with the creation of a $3.5-billion real estate investment trust that should hit the market in the fall.





Read the full article here.

 

[Ally]

So we gained a few jobs - so what? Economists unimpressed by 'mediocre' job growth




The Canadian economy managed only meager job growth in April, following a big drop in employment the previous month, as the jobless rate remained at 7.2%. But while the 12,500 new jobs look good compared with March`s job carnage (54, 500 jobs lost), don`t get too excited, say economists.




The job gains ` mostly in the public administration and manufacturing sectors ` are mediocre and reflect a sluggish economy.





Read the full article here.

 

[Ally]

Canadian employment rates by city




OTTAWA ` The national unemployment rate was 7.2 per cent in April. Statistics Canada also 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. (Previous month in brackets.)



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[Ally]

Five notable job trends





Employment levels in Canada were little changed last month and the unemployment rate held at 7.2 per cent. But behind the static-sounding headline lies plenty of churn. Here are five trends in Canada's labour market:







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[Ally]

What recovery? For young Canadians, labour market as bad as during recession




OTTAWA - Whether jobs are created or lost on any given month, the one constant in Canada's post-recession employment record has been that for young people, the news has always bad.




And the lack of progress in job creation for young Canadians is becoming a political liability for the Harper government that continues to boast of having the best employment record in the G7.





Read the full article here.

 

[Ally]

Uptick in job creation in April




OTTAWA -- After suffering through the worst month in four years, Canada's jobs market turned modestly positive again in April, churning out 12,500 net new jobs -- all of them full-time -- in a signal the long winter of labour-market contraction may be at an end.




The modest pickup helped take the sting out of March's massive 54,500 contraction, although it was not enough to budge the unemployment rate from 7.2 per cent.





Read the full article here.

 

[Ally]

Flaherty says Canadian real estate trust wave not a concern




OTTAWA ` Canadian Finance Minister Jim Flaherty says he`s not worried by the recent wave of businesses spinning off real estate assets into tax-preferred trusts.




Canadian Tire, the country`s largest sporting goods retailer, said last week it will create a $3.5 billion real estate investment trust in an initial public offering this fall, becoming the eighth company to either sell or propose such an IPO this year.



Read the full article here.

 

[Ally]

Canada's banks could be on the hook to bail out CMHC if disaster strikes




One major factor behind Canadian banks being the envy of the financial world is that they get so much help from the federal government.




But there may be strings attached to that security ` one analyst is predicting that the big banks could actually get hit with the bill in the unlikely event that Canada Mortgage and Housing Corp., which insures about $560-billion worth of the country`s mortgages, ever needs to be bailed out.





Read the full article here.

 

[Ally]

Foreign workers getting most of Canada's new jobs




Canada`s job growth is showing signs of improving, according to Statistics Canada ` but a new Canadian Labour Congress (CLC) study has found that most of the new jobs are being filled by temporary foreign workers (TFWs).










The organization`s research ` based on statistics from the Labour Force Survey and Citizenship and Immigration Canada ` concludes that the influx of TFWs to B.C. exceeded the number of new jobs created between 2008 and 2011.





Read the full article here.

 

[Ally]

Homebuyers: What should a real estate lawyer do for you?




When graphic and web designer Andy Stanleigh bought a house in Oakville, Ont. last summer, he learned the value of having a real estate lawyer on call.




A few days before closing, Mr. Stanleigh and his wife received a surprise letter from the vendor`s lawyer, saying that they needed to immediately pay nearly $1,100 in property taxes. The letter stated that the vendors had paid the final property taxes for the year, and so the Stanleighs needed to reimburse them before the house sale could close.





Read the full article here.

 

[Ally]

Soft landing still likely





Recently Genworth Canada hosted a half-day seminar for Realtors and mortgage industry professionals. The seminar was held in Mississauga and broadcast live across Canada via webcast. Craig Alexander, chief economist at TD Group, delivered the keynote speech about the current state of Canada`s economy and real estate market. His presentation was followed by a review of Genworth Canada`s annual Homeownership Study ` a survey that looks at homebuyer trends and behaviour and financial fitness levels of Canadians.







Read the full article here.

 

[Ally]

Would shorter amortizations make the housing market safer?




Canada`s banking watchdog seems intent on stamping more risk out of the mortgage market.




The latest idea being floated by The Office of the Superintendent of Financial Institutions (OSFI) is to limit amortizations to 25 years for homeowners who have put down 20 per cent of the purchase price or more. The current maximum is 35 years.





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[Ally]

Canadian home sales edge up in April, but prices gain least in 2 years




TORONTO ` Canadian home sales rose in April, the second straight monthly gain, as spring homebuying breathed life back into the slowing real estate sector and bolstered hopes that Canada will manage a soft landing rather than a U.S.-style housing crash.





Here`s why Steve Eisman, who rose to fame betting against subprime mortgages in the U.S., says he is pessimistic about the Canadian housing market. Read on





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[Ally]

What housing crisis? Many Canadians would be spared in major correction




There is a housing market correction in the making and it has the banks a little worried ` but homeowners even more so. Get ready for a slew of `Told ya so` commentaries from anyone who has predicted a crash over the past decade. Cry about something long enough and eventually it`ll come true. But let`s take a step back and think about the situation.





Let`s not argue over whether Canada is the proud owner of a pretty pink housing balloon or a black bubble because either way, they both can pop.





Read the full article here.

 

[Ally]

Alberta leads Canada in job gains in April




The Canadian economy managed only meager job growth in April, following a big drop in employment the previous month, as the jobless rate remained at 7.2%, reports the Financial Post`s Gordon Isfeld. There were 12,500 more people working last month, most of those in the public administration and manufacturing sectors, Statistics Canada said Friday. Those gains, while marginal, were in line with economists` forecasts.`Sometimes the Canadian jobs numbers don`t deliver a radical surprise, and this was one of them,` said Avery Shenfeld, chief economist at CIBC World Markets. `Overall, not much to move the market here, with hiring in line with expectations, and a mix of good and bad news in the details.`





Read the full article here.

 

[Ally]

Nothing going on with these mortgages, just keep walking: OSFI




Twice this month, Canada`s banking regulator has issued assurances it`s got its eye on the way banks are treating the hundreds of billions in mortgages they hold and it`s happy with what it`s seeing. That doesn`t happen often and it`s prompted some observers to question whether the Office of the Superintendent of Financial Institutions is suddenly feeling pressure to reassure the world that ` as far as it`s concerned ` things are fine.





Read the full article here.

 

[Ally]

Manufacturing recovery takes a detour, but long-term prospects brighter




OTTAWA - Canada's manufacturing recovery took a small detour in March, disappointing markets and returning some of the encouraging gains that the sector had made the previous month.




Sales in the factory sector fell 0.3 per cent to $49.5 billion following an upwardly revised 2.8 per cent increase in February, as petroleum and coal products unexpectedly fell.





Read the full article here.

 

[Ally]

Canadians interested in recreational property feel added urgency to leap while rates are low







TORONTO, May 16, 2013 /CNW/ - According to a new survey released today by Royal LePage, interest rates factor hugely into the decisions of Canadian households when it comes to purchasing a recreational property.




The survey, which polled Canadians across the country who either currently own or intend to purchase a recreational property within the next five years, found that most (82 per cent) Canadians say interest rates will influence their decision to purchase a recreational property - and a majority (58 per cent) feel added urgency to buy a recreational property while interest rates are low.





Read the full article here.