Don't expect a large return from your house in the next 10 years
Canadians shouldn`t get too wound up by the idea that a housing-market slowdown will erode the value of perhaps their biggest investment asset. On the other hand, they shouldn`t expect massive returns on that investment over the next decade, either.
This is the wisdom contained in a report Monday from Toronto-Dominion Bank economists Craig Alexander, Derek Burleton and Sonya Gulati. While they don`t anticipate a sharp crash in Canadian home values over the next few years, they warned that the downturn will likely be followed by lower-than-historical annual returns over the next decade.
Canadian housing prices to rise a "lacklustre" 2% a year
Most Canadians` biggest investment ` their home ` is likely to show a `lacklustre` 2 per cent annual rate of return over the next decade, a report by TD Economics predicts.
`In other words home price gains should simply match the pace of inflation,` the report says.
Stable mortgage rates putting a "spring" in buyers' steps
March may signal rising temperatures, but the same cannot be said for fixed and variable mortgage rates as Canadian economic factors show only sluggish improvement. While BMO has reintroduced its discounted 2.99% mortgage, broker rates have remained below 2.80% for weeks, and a slower than usual housing market will counter the typically hot spring mortgage season. While bond yields have seen a slight downturn over the past month, it is anticipated that they're to remain close to current levels, leading to no significant movement for fixed mortgage rates. Slow economic progress has also prompted the Bank of Canada to maintain its interest rate, leading to no change for the time being for variable mortgage rates.
The escalating demand for food resources is turning all eyes towards the world`s feeding nations. Yet with global population growth projected to reach 9 billion by 2045, can Alberta`s producers continue to sustain their agricultural output to remain a major competitor?
The consensus seems to be `so far, so good,` but there are warning signs that productivity gains could be hamstrung by funding cutbacks, infrastructure changes and competition from within and beyond the province`s and even the country`s borders. This could have particular implications for Alberta`s stronghold position in such areas as wheat, canola and beef production.
Canadians think the time is right to lock into a fixed mortgage
Harris/Decima reveals Canadians are leaning towards fixed-rate mortgages this Spring, marking the third consecutive year Canadians have chosen fixed over variable. The poll also reveals a change in Canadians` expectations for interest rates, with more Canadians now believing today`s low rates will remain in place for at least the next 12 months.
`There are so many real estate myths out there that people take as being the gospel,` says Ron Abraham, president of the Ontario Real Estate Association. REM recently asked three people in the industry about some of these real estate perceptions.
Home sales down 16% from a year ago, but home prices flat
The number of homes sold across Canada decreased by almost 16 per cent in February compared to a year ago, even as the average sale price dipped by about one per cent to $368,895.
The Canadian Real Estate Association said Friday that housing sales have been effectively flat since August, when new federal government rules making it harder to get a mortgage came into effect.
CREA said almost 80 per cent of local markets posted year-over-year declines in sales activity in February, the most notable exception being Edmonton.
Canadian debt at record highs, but soft landing in sight: Analysts say
Canadian households continue to get into deeper debt, but the most recent data also offers a bit of a respite ` credit accumulation is slowing and there`s evidence the Bank of Canada is correct in saying the problem appears to be stabilizing.
A Statistics Canada report Friday calculates the average household owed a record $164.97 in market debt for every $100 of disposable, after-tax income they earned in the fourth quarter of 2012 ` slightly more than the previous high of $164.7 in the prior three months.
Canada home sales fall 2.1% from January to February
TORONTO, March 15 (Reuters) - Sales of existing homes in Canada fell in February from January and year-over year sales plummeted, the Canadian Real Estate Association said on Friday in a report that bolstered evidence that Canada's once-hot housing market is slowing.
Canada ranks 6th among 16 countries in Conference Board report
Canada`s economy moved up to a ranking of sixth among 16 countries assessed by the Conference Board of Canada in its report for 2012, How Canada Performs: Economy.
While Canada retained a B grade and improved its ranking from 11th in the last pre-recession report for 2008, that is more a reflection of weakness among its peers than a stellar Canadian economy.
Expansion in Western Canada expected to create 16,000 more jobs for engineers by 2020
Toronto - The job market for engineers is strongest in western Canada, according to data in a recently released report, Engineering Labour Market in Canada: Projections to 2020. Sponsored by Randstad Engineering in conjunction with Engineers Canada, the report shows that there is `strong expansion demand` in that sector in British Columbia, Alberta, and the prairie provinces.
Keystone XL delays mean increase in dirtier rail transport
A TransCanada Corp. executive says opponents to the Keystone XL pipeline should consider one consequence of delays in building the oil pipeline ` an increase in dirtier and more dangerous rail transport.
The development of Canada`s oil sands is unlikely to be significantly affected whether or not the Keystone XL pipeline project is approved, the U.S. State Department said in a new report released on Friday.
Canadian dollar drops most in a week as Cyprus bank deposit levy sours risk appetite
The Canadian dollar posted its biggest drop in more than a week against its U.S. peer as a proposed levy on deposits in Cyprus`s banks threatened to throw Europe back into crisis, souring risk appetite.
The currency pared losses after data showed foreign appetite for Canadian bonds rebounded in January, led by the largest monthly purchase of corporate debt in more than a decade. Cypriot lawmakers delayed voting on a 5.8-billion euro (US$7.5-billion) levy demanded by fellow eurozone countries to secure a bailout aimed at preventing financial collapse and a possible exit from the shared currency. The U.S. Federal Open Meeting Committee begins a two-day policy meeting tomorrow.
The flicker of optimism that sparked in Canada`s housing market when January sales outpaced December`s has died out, erased by a notable drop in February.
Last month`s declines were significant enough to prompt the Canadian Real Estate Association (CREA) to cut its sales outlook for 2013 on Friday for the third time since last summer.
Despite housing concerns, investing opportunities in Canada and the U.S. abound
Canada`s housing market is apparently on the ropes, particularly in major cities such as Vancouver and Toronto where prices appear overvalued. The softening market might lead investors to consider trying to cash in on the rebounding U.S. market. Housing prices stateside are expected to grow in the high single digits this year and nearly 15% next year, after several years of steady declines.
TORONTO, March 18 (Reuters) - A slowdown in Canada's housing market will continue through 2013 and years of stagnation may follow, but no crash is likely because demographic trends will support demand in the medium term, a report by Scotiabank said on Monday.
The report by Canada's third-largest bank said that home sales have already dropped more than 10 percent from spring 2012, with prices leveling off but not yet falling except in particularly hard-hit markets.
Baby boomers not selling, skewing Canada's housin market
Demographics are expected to have a profound effect on Canada`s housing market in the coming years, resulting in less housing turnover as well as fewer sales and listings, according to a new report by Scotiabank Economics.
Economy to improve, but loonie to remain below parity for the next two years: RBC
OTTAWA - Canada's largest bank is forecasting the economy will do slightly better than most will expect in the next two years, and one reason why is that the Canadian dollar won't.
The Royal Bank (TSX:RY.TO - News) is projecting growth rates of 1.8 per cent for 2013 and 2.9 per cent for 2014, which is a couple of decimal points better than the consensus estimate Finance Minister Jim Flaherty will be using in Thursday's budget.
But the bank says the Canadian dollar is unlikely to see sustained parity again over the next two years, averaging at about 96 cents US in 2013 and 98 cents US in 2014.
