September 2014 Canadian Economic Fundamentals

[Ally]

Canada's aging population expected to head west





Canada`s population will shift dramatically in the next half century, becoming greyer, more diverse and more concentrated in the four Western provinces.





A portrait of Canada in the next 50 years shows the country`s population could reach up to 63.5 million people by 2063 compared with 35.2 million last year, Statistics Canada projections show.





Read the full article here.

 

[Ally]

Housing market implications of millennials moving out





As the U.S. economy improves and adds jobs, younger Americans-millennials-are slowly starting to move out from their parents' basements, where a record number of them have been living for the past few years. They're not buying homes as much as they are renting them, but how much and where is crucial to know in order to understand where the housing recovery is headed.





Over the past year, all the growth in net household formations has been among renters, according to the U.S. Census. For those 35 years old and younger, their home ownership rate has fallen from 44 percent to 36 percent over the past decade, which is why construction of multi-family apartments is at the highest level in a quarter-century this year.





Read the full article here.

 

[Ally]

Data show home prices will continue to rise





If Toronto-Dominion Bank economist Diana Petramala is correct, home prices might be on their way up again. That would be disappointing news to those in Ottawa who, until recently, were fairly certain they had successfully steered the housing market toward a soft landing. Under that scenario house prices were supposed to slowly lose some steam, rather than go through a major correction. Most economists agree that home prices are inflated, and, coupled with high consumer debt levels, pose a risk to the economy.





Read the full article here.

 

[Ally]

Canada benefitting from 'the right kind' of U.S. growth





If the American economy grows, it`s a pretty safe bet that the Canadian economy is also expanding. Over the past 30 years, the Canada`s quarterly GDP has increased on 95 percent of occasions in which U.S. growth is positive.





After the American economy bounced back following a contraction in Q1 and both Canada and the United States enjoyed strong growth in Q2, concerns have increasingly shifted from the level of growth to the nature of growth ` especially in the Great White North. Canadian households put the economy on their backs following the Great Recession, and as a result the nation returned to pre-recession levels of output far faster than most of its peers. But growth driven by (debt-fuelled) household spending just isn`t sustainable, as the Bank of Canada has admitted on countless occasions. To this end, PIMCO`s Ed Devlin warned that `all growth is not created equal` and wrote that `bad` growth in Canada would increase the risks to financial stability.





Read the full article here.

 

[Ally]

Many Canadians opt for vacation over mortgage down payment





With home prices as high as they are in several cities, some consumers appear to be electing to skip the endless grind of saving up for a down payment and instead escape on an annual holiday package.





Or two. Or even three, each year.





Read the full article here.

 

[Ally]

Renewing your mortgage? Here's why you should pick up the phone





It is mortgage renewal time in my house.





I am one of those debt loving people who believe I can do more with my money by carrying a big debt at 3%, than by paying off my house and using up all that cheap capital ` but that financial idea is a story for another column.





Read the full article here.

 

[Ally]

Canada inflation unlikely to move Bank of Canada's rate stand





OTTAWA ` Canada`s annual rate of inflation remained at 2.1% last month ` just above the Bank of Canada`s mid-point target ` as prices edged up across the board, led by higher housing costs.





The year-over-year increase in August matched the July pace, Statistics Canada said Friday, and was in line with economists` forecasts. In June, the federal agency`s consumer prices index stood at 2.4%.





Read the full article here.

 

[Ally]

Inflation rate holds steady in August, StatsCan says






OTTAWA`The rise in the cost of living held steady in August, with the annual inflation rate coming in at 2.1 per cent, Statistics Canada said Friday.







That was unchanged from July, when the federal agency`s Consumer Price Index also rose by 2.1 per cent over a 12-month period.





Read the full article here.

 

[Ally]

Super mailbox on your front yard could lower the value of your home





Community mailboxes, which Canada Post plans on rolling out across the country, could end up lowering the value of your home, according to a report prepared for the union that represents postal workers.





The Canadian Union of Postal Works provided the Financial Post with an internal document, prepared by a professional appraiser, on the impact the mailboxes might have on property values. CUPW would not provide the name of the appraiser who wrote the report.





Read the full article here.

 

[Ally]

Toronto and Vancouver's red-hot housing markets aren't as 'insane' as they look, says CIBC's top economist





In Toronto, calls for house prices to significantly fall are much like predictions for the Maple Leafs to win the Stanley Cup: They surface every year, but when the results don`t materialize, people are quick to say `wait until next year.`





This analogy from CIBC World Markets chief economist Avery Shenfeld comes as research continues to suggest that some elements of the Canadian housing market are vulnerable to a correction.





Read the full article here.

 

[Ally]

Oliver says no major shift in mortgage policy for now





Canada`s Conservative government has no immediate plans for a shift in mortgage rules, its finance minister said on Sunday, amid speculation policymakers want banks to take more of the risk in mortgage lending.





The federal government provides mortgage insurance through Canada Mortgage and Housing Corp (CMHC) to qualified home buyers who make a down payment of less than 20 percent. Canadian banks rely on this government-backed insurance to reduce the risk on their balance sheets.





Read the full article here.

 

[Ally]

No fear of housing bubble: CMHC





Prices of some Canadian homes are certainly too high, but there is no immediate catastrophe looming for the country`s housing market, the head of Canada Mortgage and Housing Corp. suggested in a speech Friday.





Evan Siddall, who has been the CEO of CMHC since January, was speaking at a conference in Montreal held by the Global Risk Institute.





Read the full article here.

 

[Ally]

How to manage your portfolio from abroad





How's your morning been? It's 10.30am and I'm going through my list: I have a tenant move-in for an Edmonton townhouse, two leases that are renewing at end of the month, two tenant move-ins in Calgary, one vacant suite in Calgary after a former tenant was evicted, three windows that need to be replaced, and a suite for which the floors need to be renovated due to flooding. Sounds like a handful, right?





Many people give up managing rental units after one suite, however, we seem to be able to hand close to 30`and still travel the world. How?





Read the full article here.

 

[Ally]

Investment strategies of high networth Canadians





How things can change.


A generation or two ago, for example, people focused on trying to pay off their mortgages as quickly as possible. Now, however, with historically low interest rates and a greater awareness of the need for and benefits of financial planning, many high net worth Canadians actually are using mortgages as part of their strategic financial tool kit and are taking mortgages into their retirement years.





Read the full article here.

 

[Ally]

Canada considers ways to cool housing market





The chief executive of Canada's government-owned mortgage insurer said Ottawa is considering a series of proposals, including getting the country's banks to share in the risk of backstopping insured mortgages, to tame a frothy housing market.





Read the full article here.

 

[Ally]

Canadian retail sales drop for the first time in 7 months





Canadian retail sales unexpectedly fell in July, dropping for the first time in seven months on lower receipts at general merchandise stores.





Sales decreased 0.1 per cent to $42.5-billion, Statistics Canada reported Tuesday.





Read the full article here.

 

[Ally]

Canada's inflation rate unchanged in August at 2.1%





OTTAWA - Canada's annual inflation rate held steady at 2.1 per cent in August, according to new Statistics Canada figures released Friday.





But many observers were caught off guard by an unexpected jump in another key indicator that helps the Bank of Canada decide if it should raise or lower interest rates.





Read the full article here.

 

[Ally]

Buying a house? Take these fall buying tips





Make sure you can complete a full and detailed inspection of the property and its surroundings, stresses Campbell, a real estate educator, investor and researcher at donrcampbell.com.Check drainage, roof condition, exterior condition as well as potential for leaky basements. In cold weather, many of these issues are hidden from view. "Water is your enemy when it comes to buying homes. Every house you buy, you must have a professional inspection completed -don't skip this step especially in the fall and winter."





Read the full article here.

 

[Ally]

Canada's oil sands to remain unhurt from falling crude prices





For the first time in four years Canadian oil sands producers are not afraid of what the upcoming winter will do to crude prices as revamped US refineries are already absorbing their production and new oil-rail terminals are ready to deliver it to markets across North America.





Read the full article here.

 

[Ally]

Suncor sends its first tanker of Western Canada heavy crude to Europe





CALGARY, Alberta, Sept 23 (Reuters) - Canada's largest oil and gas producer, Suncor Energy Inc, is shipping its first ever tanker of Western Canadian heavy crude from Canada's East Coast to Europe, a company spokeswoman said on Tuesday.





Suncor spokeswoman Sneh Seetal confirmed Reuters shipping data that shows the aframax tanker Minerva Gloria was set to pick up a cargo of crude oil from the port of Sorel-Tracy on the St. Lawrence River in Quebec.





Read the full article here.