March 2012 Canadian Economic Fundamentals

[Ally]

The good news behind oil prices




WASHINGTON, March 4 (Reuters) - Rising oil prices often are the death knell for economic recovery. This time around the surge in crude oil is looking more like a harbinger of better days.




Political tensions over Iran's nuclear ambitions have pushed crude oil prices up 11 percent over the past month to around $123 a barrel, stoking concerns a violent confrontation that reduced supplies could send Brent crude above $150 a barrel.




Oil at that level could undermine a gradual strengthening of the world economy. Even at current levels, it could shave 0.2 percentage point from growth, analysts said.





Read the full article here.

 

[Ally]

Will slowing GDP growth drive BoC to cut rates?






With the latest data Friday showing Canada`s economy slowing down ` but not stalling ` in its fourth quarter and likely to continue to muddle along down a similar path in 2012, the addition of weaker housing activity will drive the Bank of Canada to cut interest rates at some point this year, Capital Economics said in a report.




David Madani, Canada economist for Capital Economics, said housing trends point to a downtrend in Canada`s housing market.





Read the full article here.

 

[Ally]

Never buy a house without a home inspection




Ontario`s hot housing market continues to spark bidding wars and, in many cases, buyers are being advised by agents to make `clean` offers to get the house they want.




By `clean`, the agent means an offer without any conditions in order to make it more acceptable to the seller. Big mistake. I constantly hear stories from `successful` home buyers, who bought without an inspection. They later uncovered major problems, many of which could have been identified with a proper inspection. This meant large repair bills and unfortunate lawsuits involving unhappy buyers, sellers and real estate agents.





Read the full article here.

 

[Ally]

Home sales seen rising, prices dipping in 2012




Sales of existing homes in Canada are projected to increase slightly this year, but dip in 2013, the Canadian Real Estate Association said on Monday.




Sales are predicted to rise 0.3 per cent in 2012 to 458,800 nationally, up from 457,305 in 2011, said CREA. The modest increase is attributed to rising demand in Alberta, Saskatchewan and Nova Scotia which is expected to offset declines in British Columbia, Ontario and New Brunswick.





Read the full article here.

 

[Ally]

CREA updates housing resale forecast






OTTAWA, March 5, 2012 /CNW/ - The Canadian Real Estate Association (CREA) has updated its quarterly forecast for home sales activity via the Multiple Listing Service[sup]Â (MLSÂ[/sup]) Systems of Canadian real estate Boards and Associations in 2012, and extended it to 2013.




National home sales activity for 2012 and 2013 is projected to remain roughly on par with the 10 year average for annual activity, as interest rates remain low and further economic and job growth continue to support Canada's housing market.




National resale housing activity is forecast to reach 458,800 units in 2012, representing an annual increase of 0.3 per cent compared to 457,305 sales in 2011. Rising demand in Alberta, Saskatchewan, and Nova Scotia, is expected to offset softer activity in British Columbia, Ontario, and New Brunswick.





Read the full article here.

 

[Ally]

Flaherty, economist warn of overheating housing market



OTTAWA ` The federal government and some of the country's leading economists remain worried about Canada's housing market http://http://www.calgaryherald.com...activity+Canada+next+years/6251903/story.htmland rising household debthttp://http://www.calgaryherald.com/business/story.html?id=6198089, and are cautioning Canadians against borrowing too much.





However, they are more optimistic about the overall state of the Canadian economy than they were just last fall, and now project stronger-than-expected economic growth in 2012.





Finance Minister Jim Flaherty met Monday with 13 private-sector economists for his traditional pre-budget consultation to get their assessment of the Canadian economy as Ottawa prepares to deliver the federal budget on March 29.






Read the full article here.

 

[Ally]

Housing affordability has improved: RBC





OTTAWA ` Housing affordability improved in Canada during the last three months of 2011, Royal Bank of Canada said in a quarterly report Wednesday.







RBC said the financial burden of owning a home declined for the second straight quarter in last year's fourth quarter, thanks to "softer" home prices and higher incomes.







That countered the deterioration of home affordability seen in the first half of last year, largely because of a rapid run-up in prices in the Vancouver area.





Read the full article here.

 

[Ally]

Economists upbeat about 2012





The federal government and some of the country's leading economists remain worried about Canada's housing market and rising household debt, and are cautioning Canadians against borrowing too much.




However, they are more optimistic about the overall state of the Canadian economy than they were just last fall and now project stronger-than-expected economic growth in 2012.




Finance Minister Jim Flaherty met Monday with 13 private-sector economists for his traditional pre-budget consultation to get their assessment of the Canadian economy as Ottawa prepares to deliver the federal budget on March 29






Read the full article here.

 

[Ally]

Fat consumer debt biggest risk in Canada, Mark Carney says



High consumer debt levels pose the biggest threat in Canada, the central bank warned today as it held its benchmark rate steady.





Bank of Canada Governor Mark Carney has oft warned Canadians that they must bring record household debt levels into line, and he did so again today, The Globe and Mail's Jeremy Torobin reports.





"Canadian household spending is expected to remain high relative to GDP as households add to their debt burden, which remains the biggest domestic risk," the central bank said in its statement.





Read the full article here.

 

[Ally]

The end of super low interest rates getting nearer, but not here yet



OTTAWA ` Bank of Canada governor Mark Carney has long warned interest rates must rise eventually ` now some economists say the day may come sooner than previously thought.





It's commonly assumed there is absolutely no chance Carney will raise the trendsetting policy rate Thursday from the one-per-cent perch it has been nailed to since September 2010. Nor will hikes come in April or May.





But with economic conditions slowly showing signs of improvement, Carney may not be on hold until late 2013 as many had assumed.





Read the full article here.

 

[Ally]

BMO is dead-set on winning mind share among consumers.

It`s coming back to the market with two new deep-discount rate promos:

• A 5-year fixed at 2.99%
  
  (which starts Thursday, March 8, 2012)
  A 10-year fixed at 3.99%
  
  (which starts Sunday, March 11, 2012)

Read the full article here.

 

[Ally]

Canada remains near the top of a slowing global real estate market





More and more global property markets have come under increasing stress, consistent with the slowdown in economic growth internationally. Pricing conditions in the majority of markets in our survey deteriorated in the final quarter of 2011. Sovereign debt concerns, high unemployment, weak consumer confidence and, in some cases, excess supply and tight credit, continue to stifle demand and depress prices.





There is some hope that recent signs of improving global economic activity and reduced financial market volatility will at the least help to stabilize the residential sector in 2012. The current ultra-low interest rate environment appears set to continue into 2013. But at the same time, fiscal restraint across the developed world will limit income growth, likely delaying the eventual recovery.







Read the full article here.

 

[Ally]

Loonie rises as Bank of Canada sees improvement in economy




The Canadian dollar was higher after the Bank of Canada said it was keeping its key interest rate unchanged at 1 per cent while noting that economic conditions have improved over the past few weeks.




The loonie (CAD/USD-I1.010.0060.63%) was up 0.66 of a cent to 100.84 cents (U.S.) as the bank cited `tentative signs of stabilization in European bank funding and sovereign debt markets.`





Read the full article here.

 

[Ally]

Legal double standard: Wind energy industry gets unofficial license to kill birds, oil and gas don't


The graphic video above shows a magnificent eagle getting killed by a wind turbine. According to a 2009 estimate from the U.S. Fish and Wildlife Service (reported on the American Bird Conservancy website here), those bird fatalities happen more than 1,200 times every day (440,000 deaths annually and 50 deaths every single hour of the day on average). For the millions of documented wind-related bird fatalities that have taken place in recent years, how many wind companies have been prosecuted? None - they get a pass.




Read the full article here.

 

[Ally]

Mortgage loan insurance for multi-family properties






CMHC is Canada`s provider of mortgage loan insurance for the construction, purchase and refinancing of multi-unit residential properties, including rental buildings, licensed care facilities and retirement homes. Take advantage of CMHC`s innovative products to help you grow your business.





Read the full article here.

 

[Ally]

Mark Carney hints at higher rates




The Bank of Canada held its key interest rate at 1 per cent Thursday, while hinting that higher borrowing costs could come sooner than expected by stressing signs of improvement both in Canada and abroad, and again calling household debt the biggest domestic risk.




In leaving borrowing costs alone for a 12th consecutive meeting, policy makers extended what has become the longest pause in several decades, a decision that was expected by Bay Street analysts and economists, most of whom see Governor Mark Carney staying on hold until at least the middle of next year.





Read the full article here.

 

[Ally]

Economists paint a brighter picture for Flaherty




Jim Flaherty`s push to erase the deficit is getting some help from an improving economy: Forecasters told Canada`s finance minister he can expect higher revenues over the coming years.




The minister met with private sector economists Monday as he prepares to deliver his 2012 budget on March 29. The government uses an average forecast from the private sector as a foundation for its growth numbers.





Read the full article here.

 

[Ally]

Key U.S. refiner foresees greater supply of Canadian oil




New supplies of crude oil from Canada and the American mid-continent will allow Gulf Coast refineries to expand exports of gasoline and diesel as North America dramatically reduces its dependence on offshore oil.




That`s the prediction of Bill Klesse, chief executive officer of Valero Energy Corp., (VLO-N27.960.963.56%) North America`s largest independent refiner and a key customer for TransCanada Corp.`s controversial Keystone XL pipeline.





Read the full article here.

 

[Ally]

Tips on Bedbugs





Tickets are purchased and bags are packed for your March break vacation. But it's important to remember that you can bring back more than just souvenirs and memories. One thing travellers need to be mindful of when travelling this spring is that bedbugs can be found almost anywhere you go - including that five-star resort. Knowing that bedbugs are excellent hitchhikers, it's important to make the suitcase the first place to look before unpacking. To help reduce your chances of a bedbug infestation, the pest control firm Orkin Canada has put together some helpful tips to avoid bringing bedbugs home.




- Survey surfaces for signs of an infestation, such as tiny rust-coloured spots on bed sheets, mattresses and bed skirts.




- Lift and look in all bedbug hiding spots, including underneath the mattress, bed frame, headboard and furniture. Typically they come out at night to feed, but during the day they are mostly found on or within a five-foot radius of the bed.






Read the full article here.

 

[Ally]

Some provinces face tougher deficit slog than others




Moody`s Investor Services says it isn`t anticipating `widespread` rating adjustments in 2012, but the credit rating agency says fighting deficits will be much harder for some provinces than others.




While not singling Ontario specifically, it does note the province is currently planning to run deficits until 2018 ` three years longer than any other province.





Read the full article here.