August 2010 Canadian Economic Fundamentals
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China`s ore demand flies under the radar
A boatload of sandy, gray muck set out from Alaska a week ago, bound for China. Buried inside the detritus were tiny flecks of gold that China National Gold Group Corp. plans to extract.
The shipment is one of many filled with mineral-rich matter that are sailing into Chinese ports and forming a key, but little-noticed, part of efforts to sate the nation`s demand for raw materials.
Coeur d`Alene Mines produces gold concentrate at a plant near Juneau, Alaska, above. The plant processes ore, shown on the left in the inset, to make the concentrate, shown on the right.
The Alaskan gold won`t appear in China`s official imports report or in trade data from major commodity exchanges or bullion markets. China`s purchases of copper scrap and investments in oil-sands projects in Canada also fly under the radar, publicly disclosed but not widely watched.
Observers say the low-grade ore making its way to China`s shores adds to evidence that Chinese demand for raw materials is greater than standard indicators show, and greater than many investors realize.
Investors instead closely track China`s consumption of widely sought commodities, like gold bullion, refined copper and crude oil. Signs that its hunger is rising or falling can move those markets, and help define its broader economic growth.
Read the full article here.
A boatload of sandy, gray muck set out from Alaska a week ago, bound for China. Buried inside the detritus were tiny flecks of gold that China National Gold Group Corp. plans to extract.
The shipment is one of many filled with mineral-rich matter that are sailing into Chinese ports and forming a key, but little-noticed, part of efforts to sate the nation`s demand for raw materials.
Coeur d`Alene Mines produces gold concentrate at a plant near Juneau, Alaska, above. The plant processes ore, shown on the left in the inset, to make the concentrate, shown on the right.
The Alaskan gold won`t appear in China`s official imports report or in trade data from major commodity exchanges or bullion markets. China`s purchases of copper scrap and investments in oil-sands projects in Canada also fly under the radar, publicly disclosed but not widely watched.
Observers say the low-grade ore making its way to China`s shores adds to evidence that Chinese demand for raw materials is greater than standard indicators show, and greater than many investors realize.
Investors instead closely track China`s consumption of widely sought commodities, like gold bullion, refined copper and crude oil. Signs that its hunger is rising or falling can move those markets, and help define its broader economic growth.
Read the full article here.
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Variable rate may no longer win
Not that there are a lot of people buying houses these days, but the answer to the age-old question of whether to go long or short on your mortgage is unclear yet again.
The Bank of Canada`s second quarter-of-a-point rate increase in the past two months is likely not going to do much to boost a real estate market that saw sales drop almost 20% across the country in June from a year ago.
The popular variable-rate product tied to prime that helped people buy a lot more house with more debt is going up too. The prime rate at the major banks, which tracks the Bank of Canada`s rate, is now at 2.75%.
But a funny thing happened as the Bank of Canada was raising rates. With much of the credit crisis seemingly behind us, the discounts on short-term borrowing are increasing as the cost of funds for banks also fall. Instead of borrowing at 100 basis points above prime, it`s now 70 basis points off prime.
At 2.05%, a variable-rate product today may look as attractive as ever, but the five-year fixed-rate closed mortgage is falling fast. It can now be had for a shade under 4%, says Rob McLister, editor of Canadian Mortgage Trends.
Read the full article here.
Not that there are a lot of people buying houses these days, but the answer to the age-old question of whether to go long or short on your mortgage is unclear yet again.
The Bank of Canada`s second quarter-of-a-point rate increase in the past two months is likely not going to do much to boost a real estate market that saw sales drop almost 20% across the country in June from a year ago.
The popular variable-rate product tied to prime that helped people buy a lot more house with more debt is going up too. The prime rate at the major banks, which tracks the Bank of Canada`s rate, is now at 2.75%.
But a funny thing happened as the Bank of Canada was raising rates. With much of the credit crisis seemingly behind us, the discounts on short-term borrowing are increasing as the cost of funds for banks also fall. Instead of borrowing at 100 basis points above prime, it`s now 70 basis points off prime.
At 2.05%, a variable-rate product today may look as attractive as ever, but the five-year fixed-rate closed mortgage is falling fast. It can now be had for a shade under 4%, says Rob McLister, editor of Canadian Mortgage Trends.
Read the full article here.
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Bond rally steams along
Speculation that the U.S. Federal Reserve may have to take additional measures to spur a flagging recovery added new life into an already frenetic bond market yesterday, sending prices surging and yields tumbling.
And investors are proving more than willing to lap up the low-yield debt.
The credit rally that began in June shows no signs of abating, and North America`s biggest corporations are taking the opportunity to raise cheap money.
IBM Corp. dipped into the capital well yesterday to raise US$1.5-billion at the lowest interest rate on record, just 1% on three-year notes. Here in Canada, Teck Resources Ltd. said it plans to buy back more expensive debt and replace it with US$750-million of senior unsecured notes at cheaper rates of 3.85% and 6%, respectively — part of a borrowing spree this year which has helped it replenish its coffers.
Symptoms of a feverish bond market are everywhere.
That demand is squeezing spreads as investors settle for lower yields on everything from corporate bonds to U.S. treasuries, even government-backed mortgage bonds that the big U.S. banks are adding at the fastest pace in 1½ years. Data yesterday showed banks added US$51.4-billion of the debt — until recently the pariah of bond markets — in the two weeks ended July 21.
Read the full article here.
Speculation that the U.S. Federal Reserve may have to take additional measures to spur a flagging recovery added new life into an already frenetic bond market yesterday, sending prices surging and yields tumbling.
And investors are proving more than willing to lap up the low-yield debt.
The credit rally that began in June shows no signs of abating, and North America`s biggest corporations are taking the opportunity to raise cheap money.
IBM Corp. dipped into the capital well yesterday to raise US$1.5-billion at the lowest interest rate on record, just 1% on three-year notes. Here in Canada, Teck Resources Ltd. said it plans to buy back more expensive debt and replace it with US$750-million of senior unsecured notes at cheaper rates of 3.85% and 6%, respectively — part of a borrowing spree this year which has helped it replenish its coffers.
Symptoms of a feverish bond market are everywhere.
That demand is squeezing spreads as investors settle for lower yields on everything from corporate bonds to U.S. treasuries, even government-backed mortgage bonds that the big U.S. banks are adding at the fastest pace in 1½ years. Data yesterday showed banks added US$51.4-billion of the debt — until recently the pariah of bond markets — in the two weeks ended July 21.
Read the full article here.
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Building permits rise more than expected in June
OTTAWA — The value of building permits in Canada jumped more than expected in June, as an increase in non-residential activity offset a decline in residential permits, Statistics Canada said Thursday.
Values rose 6.5 per cent to $6.6 billion during the month. Most economists had expected a gain of 1.8 per cent.
The June figure was up 24.9 per cent from the same month last year, the federal agency said.
In the non-residential sector, permit values rose 23.5 per cent to $3 billion. "This increase was largely attributable to higher commercial and institutional construction intentions in Ontario and higher commercial construction intentions in Alberta," the agency said.
Read the full article here.
OTTAWA — The value of building permits in Canada jumped more than expected in June, as an increase in non-residential activity offset a decline in residential permits, Statistics Canada said Thursday.
Values rose 6.5 per cent to $6.6 billion during the month. Most economists had expected a gain of 1.8 per cent.
The June figure was up 24.9 per cent from the same month last year, the federal agency said.
In the non-residential sector, permit values rose 23.5 per cent to $3 billion. "This increase was largely attributable to higher commercial and institutional construction intentions in Ontario and higher commercial construction intentions in Alberta," the agency said.
Read the full article here.
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Albertans support province`s management of oilsands: Poll
EDMONTON — While the Alberta government struggles to counter negative media coverage of the oilsands, a new poll suggests Albertans think their provincial government is doing a pretty good job of managing the resource — although they don`t seem to quite understand what that means.
The poll, conducted in part by Cambridge Strategies, found that a majority of Albertans — 65 per cent — agreed with the statement that the "Alberta government is responsibly managing the oilsands."
Respondents ranged in their degree of confidence in Premier Ed Stelmach`s oilsands stewardship: 34 per cent said they only slightly agreed with the statement, while only six per cent said they agreed completely.
But the poll — which surveyed 1,032 Albertans between May 6 and 11 and is considered accurate to within plus or minus three percentage points, 19 times out of 20 — also pinpointed gaps in Albertans` awareness of the oilsands` environmental impact.
For example, the poll found that as many as 60 per cent of those surveyed believe some or all of emitted carbon dioxide is being captured at oilsands sites. In fact, the government`s $2-billion investment in carbon capture and storage technology has not yet yielded such results.
Read the full article here.
EDMONTON — While the Alberta government struggles to counter negative media coverage of the oilsands, a new poll suggests Albertans think their provincial government is doing a pretty good job of managing the resource — although they don`t seem to quite understand what that means.
The poll, conducted in part by Cambridge Strategies, found that a majority of Albertans — 65 per cent — agreed with the statement that the "Alberta government is responsibly managing the oilsands."
Respondents ranged in their degree of confidence in Premier Ed Stelmach`s oilsands stewardship: 34 per cent said they only slightly agreed with the statement, while only six per cent said they agreed completely.
But the poll — which surveyed 1,032 Albertans between May 6 and 11 and is considered accurate to within plus or minus three percentage points, 19 times out of 20 — also pinpointed gaps in Albertans` awareness of the oilsands` environmental impact.
For example, the poll found that as many as 60 per cent of those surveyed believe some or all of emitted carbon dioxide is being captured at oilsands sites. In fact, the government`s $2-billion investment in carbon capture and storage technology has not yet yielded such results.
Read the full article here.
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Survey shows HST misconceptions remain among Ontarians and British Columbians regarding real estate transactions
TORONTO / VANCOUVER, August 5, 2010 – A survey conducted by Royal LePage Real Estate Services revealed that Ontarians and British Columbians have misconceptions about how the Harmonized Sales Tax (HST) affects real estate transactions. When respondents were asked to provide examples of comments heard from buyers and sellers regarding the HST and its effect on the housing market, almost half of the comments (46.7 per cent) indicated that confusion about HST remains more than one month after its introduction. Among the most common responses to the survey`s open-ended questions were that many home buyers incorrectly believe HST applies to the sale price of resale properties.
Nearly half (43.9 per cent) of the 765 REALTORS® polled in Ontario and B.C. said the HST that took effect in both provinces July 1 is having the greatest effect on the cooling residential real estate market, compared to just 28.4 per cent who cited rising interest rates as having the greatest effect. In all, more than 86 per cent of respondents said the HST is affecting their business somewhat.
The HST applies to the purchase price of a newly-built home, and fees for services and commissions associated with any real estate transaction, but it does not apply to the purchase price of resale homes. Resale homes comprise the bulk of transactions in the Canadian housing market, and the majority of agents surveyed by Royal LePage indicated that new home sales account for less than 10 per cent of their business.
"We wanted to understand the impact HST has had since it was introduced, and what we found is that there is a need to better educate home buyers and sellers to ensure they understand when the HST is applicable," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "According to our REALTORS® who work in B.C. and Ontario communities every day, misconceptions about the HST are having an effect on the market in both provinces."
Nearly one quarter (24.1 per cent) of respondents in the Royal LePage survey said home buyers and sellers have a low level of awareness about how the HST applies to a home sale transaction, while 44 per cent said buyers and sellers are only somewhat aware.
Read the full article here.
TORONTO / VANCOUVER, August 5, 2010 – A survey conducted by Royal LePage Real Estate Services revealed that Ontarians and British Columbians have misconceptions about how the Harmonized Sales Tax (HST) affects real estate transactions. When respondents were asked to provide examples of comments heard from buyers and sellers regarding the HST and its effect on the housing market, almost half of the comments (46.7 per cent) indicated that confusion about HST remains more than one month after its introduction. Among the most common responses to the survey`s open-ended questions were that many home buyers incorrectly believe HST applies to the sale price of resale properties.
Nearly half (43.9 per cent) of the 765 REALTORS® polled in Ontario and B.C. said the HST that took effect in both provinces July 1 is having the greatest effect on the cooling residential real estate market, compared to just 28.4 per cent who cited rising interest rates as having the greatest effect. In all, more than 86 per cent of respondents said the HST is affecting their business somewhat.
The HST applies to the purchase price of a newly-built home, and fees for services and commissions associated with any real estate transaction, but it does not apply to the purchase price of resale homes. Resale homes comprise the bulk of transactions in the Canadian housing market, and the majority of agents surveyed by Royal LePage indicated that new home sales account for less than 10 per cent of their business.
"We wanted to understand the impact HST has had since it was introduced, and what we found is that there is a need to better educate home buyers and sellers to ensure they understand when the HST is applicable," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "According to our REALTORS® who work in B.C. and Ontario communities every day, misconceptions about the HST are having an effect on the market in both provinces."
Nearly one quarter (24.1 per cent) of respondents in the Royal LePage survey said home buyers and sellers have a low level of awareness about how the HST applies to a home sale transaction, while 44 per cent said buyers and sellers are only somewhat aware.
Read the full article here.
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Canada loses 9,300 jobs in July as economy shows signs of cooling
OTTAWA — The Canadian economy unexpectedly shed 9,300 jobs in July, most of them full-time positions, as the pace of recovery shows signs of slowing.
Statistics Canada said Friday that 139,000 full-time jobs were lost during the month, while 129,700 part-time positions were created.
The unemployment rate rose to eight per cent in July from 7.9 per cent the previous month. the federal agency said.
"In July, employment decreased in educational services and in finance, insurance, real estate and leasing. At the same time, there were increases in manufacturing and public administration.," it said.
"Quebec posted employment losses in July, while Alberta and British Columbia had increases. In all other provinces, employment was little changed."
Most economists had expected between 12,000 and 15,000 new jobs in July, with the unemployment rate remaining at 7.9 per cent.
Read the full article here.
OTTAWA — The Canadian economy unexpectedly shed 9,300 jobs in July, most of them full-time positions, as the pace of recovery shows signs of slowing.
Statistics Canada said Friday that 139,000 full-time jobs were lost during the month, while 129,700 part-time positions were created.
The unemployment rate rose to eight per cent in July from 7.9 per cent the previous month. the federal agency said.
"In July, employment decreased in educational services and in finance, insurance, real estate and leasing. At the same time, there were increases in manufacturing and public administration.," it said.
"Quebec posted employment losses in July, while Alberta and British Columbia had increases. In all other provinces, employment was little changed."
Most economists had expected between 12,000 and 15,000 new jobs in July, with the unemployment rate remaining at 7.9 per cent.
Read the full article here.
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World economy `not out of the woods yet,` says Flaherty
ORILLIA, ONT. — Jim Flaherty may have faced down the financial crisis but he was forced on the defensive by a feisty senior at a policy conference, where he issued a public apology for the hardship inflicted by his decision to tax income trusts nearly four years ago.
"I apologize for the fact that it did affect a lot of Canadians, including you," the Finance Minister said in response to a question at the 79th annual Counchiching conference from Sheila Whitzman, who called his October 31 2006 decision "a Halloween massacre."
Activists who have long opposed Mr. Flaherty`s decision say it is the first time he has apologized in a public forum. Mr. Flaherty said he`d only been finance minister for six months, "so it was probably a politically unwise thing to do - certainly for me personally."
But he was unrepentent about the substance of the move that caused unit prices for all publicly listed income trusts to drop in the weeks following the sudden announcement.
"It needed to be done, it wasn`t going to get better...If you`re in politics to be popular, you`ll get a lot of bad government and the income trust rule was ruining our economy."
Read the full article here.
ORILLIA, ONT. — Jim Flaherty may have faced down the financial crisis but he was forced on the defensive by a feisty senior at a policy conference, where he issued a public apology for the hardship inflicted by his decision to tax income trusts nearly four years ago.
"I apologize for the fact that it did affect a lot of Canadians, including you," the Finance Minister said in response to a question at the 79th annual Counchiching conference from Sheila Whitzman, who called his October 31 2006 decision "a Halloween massacre."
Activists who have long opposed Mr. Flaherty`s decision say it is the first time he has apologized in a public forum. Mr. Flaherty said he`d only been finance minister for six months, "so it was probably a politically unwise thing to do - certainly for me personally."
But he was unrepentent about the substance of the move that caused unit prices for all publicly listed income trusts to drop in the weeks following the sudden announcement.
"It needed to be done, it wasn`t going to get better...If you`re in politics to be popular, you`ll get a lot of bad government and the income trust rule was ruining our economy."
Read the full article here.
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Renovation became `nightmare marathon`
By their own admission, David King and Lynne Godfrey made almost every mistake in the home renovation handbook when they embarked on a $90,000 remake of their Sammon Ave. home last fall, resulting in a 23-week "nightmare marathon."
It ended with the "designer contractor" refusing to follow their choices for backsplash and hardwood flooring "because you have no taste," using their credit card for unrelated purchases, and walking off the unfinished job after four months, calling them "nightmare clients." King was left to negotiate and pay the sub trades to finish the job in time for Christmas, nearly 16 weeks late.
The contractor now faces charges by the City of Toronto for operating without a license and the couple is still dealing with the fallout, from a leaky stove vent to unfinished basement steps and other outstanding work, which could cost a few thousand dollars to put right.
The story, with its parallels to comedian Jerry Seinfeld`s infamous "Soup Nazi" TV character, didn`t end as the complete horror show it could have been, though they are stuck in a stand-off with their "contractor" over a long list of deficiencies, with each side claiming the other owes them money
REad the full article here.
By their own admission, David King and Lynne Godfrey made almost every mistake in the home renovation handbook when they embarked on a $90,000 remake of their Sammon Ave. home last fall, resulting in a 23-week "nightmare marathon."
It ended with the "designer contractor" refusing to follow their choices for backsplash and hardwood flooring "because you have no taste," using their credit card for unrelated purchases, and walking off the unfinished job after four months, calling them "nightmare clients." King was left to negotiate and pay the sub trades to finish the job in time for Christmas, nearly 16 weeks late.
The contractor now faces charges by the City of Toronto for operating without a license and the couple is still dealing with the fallout, from a leaky stove vent to unfinished basement steps and other outstanding work, which could cost a few thousand dollars to put right.
The story, with its parallels to comedian Jerry Seinfeld`s infamous "Soup Nazi" TV character, didn`t end as the complete horror show it could have been, though they are stuck in a stand-off with their "contractor" over a long list of deficiencies, with each side claiming the other owes them money
REad the full article here.
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Lawyer not obligated to negotiate better purchase agreement
When a lawyer is presented with an unconditional but obviously defective agreement of purchase and sale by a client, does he or she have an obligation to try to negotiate an improvement to its terms?
That was the question for the court to decide in the case of Graham v. Diamond, released by the Ontario Superior Court of Justice in June.
In July, 2002, Patrick and Heather Graham entered into an agreement to purchase a house on Carrington Lane in Quinte West from George Diamond. The agreement was conditional until the end of the month on the Grahams arranging satisfactory financing, failing which the deal would die and the deposit money would be returned.
There was no condition for either an environmental assessment or a home inspection.
After the financing condition had been waived and the deal was firm, the Grahams retained Belleville lawyer Raymond Kaufman to represent them in the transaction.
Prior to closing, Kaufman confirmed with the city of Quinte West that there were no outstanding work orders on file against the property. The transaction closed August 16, 2002
Read the full article here.
When a lawyer is presented with an unconditional but obviously defective agreement of purchase and sale by a client, does he or she have an obligation to try to negotiate an improvement to its terms?
That was the question for the court to decide in the case of Graham v. Diamond, released by the Ontario Superior Court of Justice in June.
In July, 2002, Patrick and Heather Graham entered into an agreement to purchase a house on Carrington Lane in Quinte West from George Diamond. The agreement was conditional until the end of the month on the Grahams arranging satisfactory financing, failing which the deal would die and the deposit money would be returned.
There was no condition for either an environmental assessment or a home inspection.
After the financing condition had been waived and the deal was firm, the Grahams retained Belleville lawyer Raymond Kaufman to represent them in the transaction.
Prior to closing, Kaufman confirmed with the city of Quinte West that there were no outstanding work orders on file against the property. The transaction closed August 16, 2002
Read the full article here.
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Charges laid in $12M Calgary mortgage fraud scheme
CALGARY -- Alberta Law Enforcement Response Teams (ALERT) have laid charges in a $12-million mortgage fraud scheme.
During a two-year investigation, authorities determined there were 22 properties involved in the scheme.
The police probe also uncovered 12 witnesses, people who were recruited to obtain a mortgage.
"The nominees, known as straw buyers, were asked to allow their name to be used to obtain a mortgage and were then told that the accused would take it over in their own names after six months," said Insp. Kevin Forsen of the Alberta Law Enforcement Response Teams (ALERT).
"In exchange for their identities, each straw buyer allegedly received between $3,000 to $5,000. Eventually, the accused walked away from the scheme with a large amount of money, leaving the nominees holding the mortgages."
Read the full article here.
CALGARY -- Alberta Law Enforcement Response Teams (ALERT) have laid charges in a $12-million mortgage fraud scheme.
During a two-year investigation, authorities determined there were 22 properties involved in the scheme.
The police probe also uncovered 12 witnesses, people who were recruited to obtain a mortgage.
"The nominees, known as straw buyers, were asked to allow their name to be used to obtain a mortgage and were then told that the accused would take it over in their own names after six months," said Insp. Kevin Forsen of the Alberta Law Enforcement Response Teams (ALERT).
"In exchange for their identities, each straw buyer allegedly received between $3,000 to $5,000. Eventually, the accused walked away from the scheme with a large amount of money, leaving the nominees holding the mortgages."
Read the full article here.
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Shaking days in the housing market
After several months of small pullbacks, the number of houses sold in some of Canada`s largest markets plummeted in July. There are plenty of factors at work – most notably the rush of buyers earlier in the year who wanted to avoid new taxes in B.C. and Ontario – but the Real Estate
Board of Greater Vancouver said July was one of the slowest months for home sales in at least a decade.
As prices moved higher in 2009 and 2010, many Canadians rushed to get their houses on the market. The number of houses listed has peaked just as demand cools. At the end of June, CREA said it would take 6.9 months to sell all the listed homes in Canada given the current rate of sales – the highest level since March 2009. Sellers face a choice. Take their listings down, or settle for less.
Read the full article here.
After several months of small pullbacks, the number of houses sold in some of Canada`s largest markets plummeted in July. There are plenty of factors at work – most notably the rush of buyers earlier in the year who wanted to avoid new taxes in B.C. and Ontario – but the Real Estate
Board of Greater Vancouver said July was one of the slowest months for home sales in at least a decade. As prices moved higher in 2009 and 2010, many Canadians rushed to get their houses on the market. The number of houses listed has peaked just as demand cools. At the end of June, CREA said it would take 6.9 months to sell all the listed homes in Canada given the current rate of sales – the highest level since March 2009. Sellers face a choice. Take their listings down, or settle for less.
Read the full article here.
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Know the exclusion clauses in your insurance policy
I often wonder whether the main principle under many insurance policies is as follows: "You`re in good hands . . . until something happens."
This is unfortunately due to the fact that there are many terms and conditions that are included with any insurance policy, which could result in no coverage and owners must be aware of what these terms mean or else they may face disastrous consequences.
My colleague, Merv Burgard, forwarded to me the Ontario case involving Paul and Wendy Wu and Gore Mutual Insurance Company, decided on Dec. 2, 2009. In this case, the owners had rented out their home in Windsor. The tenant took terrible care of the premises and neighbours complained to the city about junk being left in the yard.
The city issued a notice to the Wus and they then gave notice to the tenant to vacate. The tenant left on Aug. 5, 2006, with the property a mess. The Wus spent the next six weeks cleaning up the property and signed a lease with a new tenant, which was to start on Nov. 1, 2006. They visited the property almost daily to continue cleaning. Sometime around Oct. 11, 2006, a fire started and the pipes burst, causing approximately $100,000 damage to the property.
Read the full article here.
I often wonder whether the main principle under many insurance policies is as follows: "You`re in good hands . . . until something happens."
This is unfortunately due to the fact that there are many terms and conditions that are included with any insurance policy, which could result in no coverage and owners must be aware of what these terms mean or else they may face disastrous consequences.
My colleague, Merv Burgard, forwarded to me the Ontario case involving Paul and Wendy Wu and Gore Mutual Insurance Company, decided on Dec. 2, 2009. In this case, the owners had rented out their home in Windsor. The tenant took terrible care of the premises and neighbours complained to the city about junk being left in the yard.
The city issued a notice to the Wus and they then gave notice to the tenant to vacate. The tenant left on Aug. 5, 2006, with the property a mess. The Wus spent the next six weeks cleaning up the property and signed a lease with a new tenant, which was to start on Nov. 1, 2006. They visited the property almost daily to continue cleaning. Sometime around Oct. 11, 2006, a fire started and the pipes burst, causing approximately $100,000 damage to the property.
Read the full article here.
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U.S. group backpedals on `Rethink Alberta` anit-oilsands campaign
CALGARY — The Alberta government and energy sector are claiming a rare public relations victory, after the group leading an anti-oilsands campaign said its advertising contained inaccurate information and will be corrected.
Corporate Ethics International, the San Francisco-based environmental organization that launched a billboard and online campaign this week attacking the oilsands and urging Americans not to visit Alberta, admitted its video overstated the size of the resource and its potential ecological damage.
The group blamed the misinformation on an "editing error" in the online video, explaining the mistake was fixed, the video re-posted to its website and that the ad blitz will continue undeterred.
Corporate Ethics stands by the rest of the information in its campaign and won`t axe any of its "Rethink Alberta" advertising, despite growing public backlash from Albertans.
"There are quite a few people who`ve expressed anger. There`s also a lot of support," said Kenny Bruno, campaign director for Corporate Ethics. "We don`t see this campaign as Americans versus Canadians or versus Albertans. We see that we`re all in this together."
Read the full article here.
CALGARY — The Alberta government and energy sector are claiming a rare public relations victory, after the group leading an anti-oilsands campaign said its advertising contained inaccurate information and will be corrected.
Corporate Ethics International, the San Francisco-based environmental organization that launched a billboard and online campaign this week attacking the oilsands and urging Americans not to visit Alberta, admitted its video overstated the size of the resource and its potential ecological damage.
The group blamed the misinformation on an "editing error" in the online video, explaining the mistake was fixed, the video re-posted to its website and that the ad blitz will continue undeterred.
Corporate Ethics stands by the rest of the information in its campaign and won`t axe any of its "Rethink Alberta" advertising, despite growing public backlash from Albertans.
"There are quite a few people who`ve expressed anger. There`s also a lot of support," said Kenny Bruno, campaign director for Corporate Ethics. "We don`t see this campaign as Americans versus Canadians or versus Albertans. We see that we`re all in this together."
Read the full article here.
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Housing, trade main topics for Canada in upcoming business week
OTTAWA — The coming week features two different sets of data on Canada`s new-housing market followed by an assessment of the country`s trade position.
On Tuesday, Canada Housing and Mortgage Corp. is scheduled to release housing-start figures for July. Providing further evidence that the country`s residential real estate market is in slowdown mode, economists anticipate the rate of starts fell for a third straight month.
The median estimate among economists polled by Bloomberg is for an annualized housing-start rate of 184,000 in July, down from a revised 192,800 in June. If on the mark, the anticipated July figure would mean the market has slowed more than 10 per cent from its recent high point of 206,300 in April. Still, things would remain up considerably from the recession-fuelled depth of 112,000 in April 2009.
"The moderation in starts is consistent with the steady erosion in building permits over the last three months," said David Tulk, senior strategist with TD Securities. "Looking further into the third quarter, the impact of the (new harmonized sales taxes in Ontario and British Columbia) is forecast to take a bigger bite out of housing construction, with a forecasted decline in the level of starts to 167,000 units."
Read the full article here.
OTTAWA — The coming week features two different sets of data on Canada`s new-housing market followed by an assessment of the country`s trade position.
On Tuesday, Canada Housing and Mortgage Corp. is scheduled to release housing-start figures for July. Providing further evidence that the country`s residential real estate market is in slowdown mode, economists anticipate the rate of starts fell for a third straight month.
The median estimate among economists polled by Bloomberg is for an annualized housing-start rate of 184,000 in July, down from a revised 192,800 in June. If on the mark, the anticipated July figure would mean the market has slowed more than 10 per cent from its recent high point of 206,300 in April. Still, things would remain up considerably from the recession-fuelled depth of 112,000 in April 2009.
"The moderation in starts is consistent with the steady erosion in building permits over the last three months," said David Tulk, senior strategist with TD Securities. "Looking further into the third quarter, the impact of the (new harmonized sales taxes in Ontario and British Columbia) is forecast to take a bigger bite out of housing construction, with a forecasted decline in the level of starts to 167,000 units."
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Sifting stats for nuggets of truth
Numbers can be used to illuminate, or to fogify. They can reveal truth, or obscure it.
Consider: A fuel cell maker`s market value jumps by 36 per cent in the first quarter of 2010. Sounds impressive, right? Think again.
Over the past 10 years, the same firm`s share price has plunged from $160 to less than $2 -- a drop of 99 per cent. In other words, the first-quarter uptick was a brief blip in a long-term meltdown. Since then, the stock has resumed its decline.
But that didn`t stop a Vancouver PR agency from touting the stock`s first-quarter rebound -- or ignoring its second-quarter drop.
My point? In business, as in life, context is everything. But it`s usually ignored when the spin doctors go to work. As Mark Twain put it: "There are three kinds of lies: lies, damned lies and statistics."
Read the full article here.
Numbers can be used to illuminate, or to fogify. They can reveal truth, or obscure it.
Consider: A fuel cell maker`s market value jumps by 36 per cent in the first quarter of 2010. Sounds impressive, right? Think again.
Over the past 10 years, the same firm`s share price has plunged from $160 to less than $2 -- a drop of 99 per cent. In other words, the first-quarter uptick was a brief blip in a long-term meltdown. Since then, the stock has resumed its decline.
But that didn`t stop a Vancouver PR agency from touting the stock`s first-quarter rebound -- or ignoring its second-quarter drop.
My point? In business, as in life, context is everything. But it`s usually ignored when the spin doctors go to work. As Mark Twain put it: "There are three kinds of lies: lies, damned lies and statistics."
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada sees `dramatic` housing slowdown, global report says
OTTAWA — Canada led in the global housing recovery in the first quarter of 2010, but moderating global growth, heightened financial market volatility and sluggish job creation have led to a "dramatic" slowdown in Canada, according to the Global Real Estate Trends report released Tuesday from Scotia Economics.
"Global real estate markets entered 2010 with a renewed sense of optimism, piggybacking on the broader economic recovery underway," Adrienne Warren, senior economist at Scotia Economics said in the report. "Housing demand and pricing improved in the first quarter of the year in the majority of the advanced nations we track, benefiting from ultralow interest rates, improved affordability, and in some cases, government purchase incentives."
Australia and Canada, with inflation-adjusted average home prices rising at double-digit rates, led the pack, echoing their relatively favourable employment and lending conditions. Sweden, Switzerland and the U.K. also saw home price increases, while U.S. and French markets reported small declines.
However, the global trend has reversed itself in recent months and Canada has seen home sales activity beginning to fall.
Read the full article here.
OTTAWA — Canada led in the global housing recovery in the first quarter of 2010, but moderating global growth, heightened financial market volatility and sluggish job creation have led to a "dramatic" slowdown in Canada, according to the Global Real Estate Trends report released Tuesday from Scotia Economics.
"Global real estate markets entered 2010 with a renewed sense of optimism, piggybacking on the broader economic recovery underway," Adrienne Warren, senior economist at Scotia Economics said in the report. "Housing demand and pricing improved in the first quarter of the year in the majority of the advanced nations we track, benefiting from ultralow interest rates, improved affordability, and in some cases, government purchase incentives."
Australia and Canada, with inflation-adjusted average home prices rising at double-digit rates, led the pack, echoing their relatively favourable employment and lending conditions. Sweden, Switzerland and the U.K. also saw home price increases, while U.S. and French markets reported small declines.
However, the global trend has reversed itself in recent months and Canada has seen home sales activity beginning to fall.
Read the full article here.
- Joined
- Oct 12, 2007
- Messages
- 586
Homeowners sell, start renting instead
As interest rates rise, more people are selling their properties - and diving into rentals, driving up rents as well Bidding wars have moved from the bungalow to the two-bedroom rental apartment.
Many homeowners who cashed out at the peak of the market are putting their money in the bank rather than investing in a new house. And as a slew of new renters look for temporary homes, they are driving up prices and engaging in bidding wars to ensure they snap up properties that are comparable to the properties they left behind.
With the real estate market cooling and the cost of mortgages expected to climb, they are sitting on their cash and hoping prices will drop before they wade back into the world of home ownership.
"There is angst among buyers who would rather rent and wait a while before jumping back in," said Cary Chapnick, president of Hive Realty Corp. in Toronto. "And then they get out there, and find that the good properties are receiving multiple offers. It`s quite a shift."
Read full article here
As interest rates rise, more people are selling their properties - and diving into rentals, driving up rents as well Bidding wars have moved from the bungalow to the two-bedroom rental apartment.
Many homeowners who cashed out at the peak of the market are putting their money in the bank rather than investing in a new house. And as a slew of new renters look for temporary homes, they are driving up prices and engaging in bidding wars to ensure they snap up properties that are comparable to the properties they left behind.
With the real estate market cooling and the cost of mortgages expected to climb, they are sitting on their cash and hoping prices will drop before they wade back into the world of home ownership.
"There is angst among buyers who would rather rent and wait a while before jumping back in," said Cary Chapnick, president of Hive Realty Corp. in Toronto. "And then they get out there, and find that the good properties are receiving multiple offers. It`s quite a shift."
Read full article here
- Joined
- Mar 24, 2009
- Messages
- 16,743
Does your city have the most overvalued real estate in Canada?
Vancouver, as if you didn`t already know, has the most overvalued real estate in Canada (what would a housing bust look like?). Thunder Bay has the most undervalued real estate in Canada.
Where does your city rank?
We ran the numbers to rank Canadian cities in order of valuation. The valuation metric of choice for this exercise is the `Price to Gross Rent Ratio`.
Price to gross rent ratio = Average MLS price/(rent x (1-vacancy rate) x 12)
This method is similar to the P/E ratio for a stock…except the `E` in this case is gross profits. The rental data was not adjusted for the number of units per house (didn`t see any indication in the CMHC report as to what that was); best guess would have been 3 units per house. Nevertheless, on a relative basis – since the methodology is consistent – the valuation ranks remain the same.
Note: The following analysis uses data from CMHC forecasts for 2010 (published Q1 2010).
Read the full article here.
Vancouver, as if you didn`t already know, has the most overvalued real estate in Canada (what would a housing bust look like?). Thunder Bay has the most undervalued real estate in Canada.
Where does your city rank?
We ran the numbers to rank Canadian cities in order of valuation. The valuation metric of choice for this exercise is the `Price to Gross Rent Ratio`.
Price to gross rent ratio = Average MLS price/(rent x (1-vacancy rate) x 12)
This method is similar to the P/E ratio for a stock…except the `E` in this case is gross profits. The rental data was not adjusted for the number of units per house (didn`t see any indication in the CMHC report as to what that was); best guess would have been 3 units per house. Nevertheless, on a relative basis – since the methodology is consistent – the valuation ranks remain the same.
Note: The following analysis uses data from CMHC forecasts for 2010 (published Q1 2010).
Read the full article here.