April 2013 Canadian Economic Fundamentals

[Ally]

Kijiji moves to charge some landlords





We wanted to reach out to you today to let you know of some changes that will be taking place on Kijiji; specifically, starting April 24, the Apartment & Condos for Rent category will become a pay-per-insertion category,` writes the leading online classifieds in a message to users earlier this month. `We understand this may come as a surprise to some of our regular posters and to help alleviate the impact, we have put into place the following measures.`



Essentially, all users will now be limited to three active ads live on Kijiji at any one time in order to avoid attracting charges.




Those posting three or more ads in that apartment/condo rental category now face a fee of $29.99 per ad, although Kijiji is pointing to monthly subscription packages that will allow landlords and their property managers to drop ads directly from their websites without having to manually post.





Read the full article here.

 

[Ally]

Steady-as-she-goes year ahead for the Canadian economy




VANCOUVER - Even though it has been said that where there are six economists there are seven opinions, we are often called upon to predict the future and sometimes we even get it right.




To hone our forecasting skills, the Association of Professional Economists of British Columbia has a contest every year to forecast the major variables of the Canadian economy. The economist with the most accurate forecast gets the coveted Crystal Ball Award. No bad jokes about economists having crystal balls ` please. I have won this award twice and since I am often asked what is going to be happening in the economy, here is what I foresee for the Canadian economy for the current year. Look for these variables in March 2014 to see if I am right.





Read the full article here.

 

[Ally]

Borrowers flocking to fixed rates




First-time homebuyers looking for mortgage financing have rarely had it so good. Mortgages are available for about three per cent. Homebuyers were paying 21.75 per cent interest on their five-year mortgages in the summer of 1981.




People now entering the housing market have another big break. Homeowners can have the security of fixed rates and anticipate paying less over the term of the mortgage than they would with variable rates.





Read the full article here.

 

[Ally]

More young Canadians staying at home longer




SASKATOON ` Most parents wish they could hang on to their kids forever and in some cases that wish is coming true.




Leaving the nest as a young Canadian adult can be challenging. So challenging that according to a rateSupermarket.ca study, 42 per cent of those asked aged 20 to 29 are still living with their parents or guardians.





Read the full article here.

 

[Ally]

After a slow start, demand for luxury homes gaining momentum





KELOWNA, BC, April 30, 2013 /CNW/ - The advent of the traditional spring market is serving to narrow the year-over-year gap for luxury home sales in most major Canadian centres, despite more muted activity in January and February, according to a report released today by RE/MAX.







Read the full article here.

 

[Ally]

No rate hike until 2015?




The PBO said it expects a tepid recovery and that the Bank of Canada will likely maintain its policy interest rate at 1 per cent until the second quarter of 2015 before gradually, but steadily, raising its policy rate.




The PBO projects real GDP growth to slow to 1.5 per cent this year and remain below its potential growth rate until 2015. As the recovery takes hold, real GDP growth is projected to average 2.6 per cent over 2015 to 2017, the PBO forecast.





The Bank of Canada, while sharing a tepid view for 2013, sees growth accelerating quicker in coming years and is forecasting a 2.8 per cent GDP rise in 2014 and a 2.7 per cent rise in 2015.





Read the full article here.

 

[Ally]

Canada's population density




A long-term problem for most of the world`s industrialized nations will be an aging citizenry, accompanied by minimal population growth or actual declines.




A `given` throughout world history has been that more people within a country`s borders has accounted for more spending. Therefore, it will be difficult for many jurisdictions to increase output when they have fewer people.





Read the full article here.

 

[Ally]

Will the new federal budget stifle growth?




OTTAWA ` The federal government`s most recent `jobs and growth` budget will wind up costing Canada both jobs and economic growth over the next few years, the Parliamentary Budget Officer says in a new report.




The PBO`s latest estimates on the impact of the 2013 budget handed down in March show the cumulative impact will be to reduce economic growth by 0.12 per cent and job creation by 14,000 by 2016.





Read the full article here.

 

[Ally]

Rules tightened around temporary foreign workers



OTTAWA (Reuters) ` The Canadian government announced tighter rules on Monday to prevent employers from using its temporary foreign worker program to squeeze Canadians out of jobs, acting after two high-profile cases tarnished the program's reputation.





The new rules will prevent employers from paying foreign workers less than Canadians, and will ensure that employers who rely on temporary foreign workers have a "firm plan" in place to transition to a Canadian labour force.







Read the full article here.

 

[Ally]

U.S. lumber prices soar 60% year-over-year





Lumber production in the US and Canada improved during 2012, with total output in 2012 being eight per cent and five per cent higher, respectively, than in 2011, according to WWPA. Sawmills in the Western region have been more fortunate than mills in other regions in North America since they have been able to ship lumber both to markets in the US and to Asia.




The US housing market is continuing to improve, with higher house prices, lower inventories and limited sales of foreclosure homes (increasingly turned into rental properties). These developments have resulted in an increased number of housing starts and higher demand for lumber. Canadian sawmills, which export a majority of their lumber to the US, have been ramping up production during 2012 to meet the higher demand for lumber. This has been particularly true for sawmills in the Eastern provinces, where production in the 4Q/12 was up 16 per cent year-over-year.





Read the full article here.

 

[Ally]

Canada's economy grew 0.3% in February, led by natural resources




OTTAWA ` Statistics Canada says the economy grew by 0.3% in February, keeping pace with January`s growth.




The federal agency says mining, quarrying and oil and gas extraction were the largest contributors to the increase in real gross domestic product ` up 2.2% ` in a fifth consecutive month of growth.





Read the full article here.