August 2013 Canadian Economic Fundamentals

[Ally]

Canada's housing market: The one no one can predict




Another month of housing data is guaranteed to produce one thing: more arguments about where the market is going.




Statistics from the Ottawa-based Canadian Real Estate Association show actual July sales were up 9.4% from a year ago while average sale price nationwide rose 8.4% to $382,373 during the same period.





Read the full article here.

 

[Ally]

Housing crash? How about benign boredom?




MONTREAL ` Canadian homeowners who believe some of the country`s most influential media outlets have been bracing for a crash in the real-estate market for the past couple of years. It hasn`t happened, of course, and what seems increasingly probable is that we`ll see the opposite: a period when virtually nothing happens to home prices.




In a market where a number of estimates peg home prices as overvalued by at least 10 per cent in many cities, and where at least one credible analyst has been warning of a 25-per-cent crash in average prices, stagnant values would allow us to avoid the serious dislocations that can occur in a sharply falling market. Instead of the economic shock of a housing crash, we`d simply see the disappearance of annual price gains for a few years ` long enough to let incomes catch up with the cost of buying a home.



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[Ally]

REITS take a back seat in real estate market




There is a shift taking place in the commercial real estate industry, with real estate investment trusts hunkering down and pension plans and private equity funds picking up the slack.




The hammering that REITs are taking in the market is weighing on their appetite to buy real estate, from office buildings to shopping malls to apartment buildings and factories. REITs accounted for just 29.3 per cent of the $14.7-billion that was invested in Canadian commercial real estate acquisitions during the first half of this year, compared to 48.2 per cent of the $14.8-billion spent in the same period last year, when they were the biggest player in the game, according to a report to be released this week by CBRE Ltd. The volume of acquisitions that REITs made in June fell 49.7 per cent from May.





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[Ally]

Carrick: Now's not the time to gamble on mortgage rates





If you`re buying a house or renewing a mortgage, the Canadian Mortgage Trends blog suggests you grab a 45- to 120-day rate hold. You might get a lower rate if you wait until you`re within 30 days of closing, but then you run the risk of having mortgage rates increase on you.







Read the full article here.

 

[Ally]

Canadian home prices up, frustrating Hongkongers waiting to buy




Canada's housing market has long defied predictions of an imminent United States-style collapse, and Hong Kong investors waiting for a correction to buy will be disappointed by the latest data.




Prices edged up 1.9 per cent last month from a year earlier, led by gains of 3.4 per cent in Toronto and 6.7 per cent in Hamilton, which is near Toronto and close to the US border, according to the Teranet-National Bank Composite House Price Index.





Read the full article here.

 

[Ally]

Pension funds buying Canadian real estate




While real estate investment trusts (REITs) have become more hesitant at making acquisitions, pension funds and private equity are seizing the opportunity to purchase quality assets.




In four of the last six months, private investors have outspent all other buyers, according to CBRE`s Canada Investment MarketView.





Read the full article here.

 

[Ally]

RE/MAX holdings to take real estate brokerage firm public



DENVER - RE/MAX Holdings Inc. filed plans Monday to take the real estate brokerage firm public and raise up to $100 million.





The company, based in Denver, has not determined the timing, price or number of shares to be offered. The maximum value of the offering was set for the purpose of calculating the registration fee. It plans to list its stock on the New York Stock Exchange under the ticker symbol "RMAX."





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[Ally]

290,000 jobs went unfilled in Canada





TORONTO, Aug. 22, 2013 /CNW/ - While labour market pressures eased somewhat in the second quarter, 290,000 full- and part-time private sector jobs still went unfilled for four months or more, according to data compiled by the Canadian Federation of Independent Business (CFIB).



The results of the quarterly Help Wanted report are based on responses from 3,526 small business owners, who were surveyed on unfilled jobs in their firms owing to the shortage of qualified labour. Later today, CFIB and Employment Minister Jason Kenney will host a Twitter forum (#cdnjobchat) on these ongoing labour shortages, and possible solutions such as the Canada Jobs Grant program.





Read the full article here.

 

[Ally]

Condo prices falling while low-rise homes continue to soar




A housing crash based on the type of home you have? Is that really possible?




It certainly didn`t happen that way in the early 1990s. When the real estate market crashed in Toronto, the entire housing sector saw prices plunge. Even commercial real estate tanked in the high-interest rate environment.





Read the full article here.

 

[Ally]

New texting service for renters




Are you a renter who`s fed up with having to sift through reams of scam-ridden Craigslist postings to find an apartment? Then Manaya`s new `Text For Info` messaging service may be for you.




Built on an SMS platform, Manaya is the first company to give renters access to rental information around the clock all from the palm of their hand ` assuming, of course, that hand is holding a mobile phone.





Rea the full article here.

 

[Ally]

10 paint colours to help sell homes




First impressions are everything when selling your home. A buyer may ask questions about house maintenance, the condition of your appliances or the quality of your neighborhood and schools, but these factors pale in comparison to the feeling a buyer gets the first time he or she steps into your home. If you want to sell your house in a short amount of time and with minimum hassle, it's critical that the decor is up-to-date and attractive.





Read the full article here.

 

[Ally]

With unemployment rate rising, job vacancies fall in Canada




OTTAWA - The Canadian Federation of Independent Business says the number of job vacancies

dropped slightly during the second quarter, an indication of a weaker labour market.




The group representing small and medium-sized businesses says there were 289,800 unfilled jobs in the private sector during the April-July period, a drop of about 5,000 from the previous quarter.





Read the full article here.

 

[Ally]

Inflation rises 1.3% in July




Rising gasoline prices remain a fact of life for most Canadians.




But will we see higher food costs on the horizon? Perhaps, though increases may not be as steep as in previous months.




The bottom line: Inflation is hardly a threat to most consumers, and there is also little wiggle room for interest-rate hikes down the road.





Read the full article here.

 

[Ally]

How the U.S. recovery is driving up Canadian mortgage rates




One after the other, Canada`s big banks have all hiked-up mortgage rates this week. Why? In large part, it has to do with the U.S. recovery.




There are two major channels in which a healthier and faster-growing economy down south is driving up the cost of borrowing for Canadian homeowners. The first one: Foreign capital that flocked into Canada since the onset of the financial crisis is now flowing out and much of it to the U.S. American banks have repaired their balance sheets. plus, U.S. GDP growth surpassed Canada and is expected to keep up that faster pace for the foreseeable future. Canada`s appeal compared to the U.S., in other words, has diminished both in terms of the perceived safety of the financial system and of economic strength. Investors have taken note and reduced their demand for Canadian debt securities, pushing up bond yields and, consequently, mortgage rates.





Read the full article here.

 

[Ally]

Bracing for higher mortgage payments




The era of pleasant surprises for people renewing their mortgages is over.




After five years of trending lower, mortgage rates have reversed course and started to rise. Aspiring first-time home buyers are being priced out of the market by these increases, but at least they've avoided a costly mortgage entanglement. Existing homeowners may simply have to pay more.





Read the full article here.

 

[Ally]

Five of the low-priced places in Canada to buy a home





Here are five of the cheapest cities in Canada to buy a house, according to the Canadian Real Estate Association. For newcomers these are some great options to purchase a home at an affordable price.





1. Moncton, New Brunswick

This city is located on the Petitcodiac River and has a population of 69,000. The average price of a home is $157,124. Moncton is known as one of the best places to live and work in Canada, and has a reputation for being a polite city.





Read the full article here.

 

[Ally]

Student debt, dismal job prospects threaten Canada's economy




As Canadian post-secondary students get ready to hit the books again this fall, many will have a lot more on their minds beyond getting good grades and finding the best keg parties.






Students are drowning in debt and paying it off is becoming increasingly difficult as tuition rates rise and jobs for young people are increasingly scarce.





Read the full article here.

 

[Ally]

Canada named "top 5" country for entrepreneurship




Scoring consistently high on nearly all categories of the entrepreneurial environment, Canada ranks among the top five countries in the EY G20 Entrepreneurship Barometer 2013, released today.




"Canada has emerged as a real leader in fostering an entrepreneurial culture," says Colleen McMorrow, EY Partner and Leader, Canadian Entrepreneur Of The Year` Program. "There's an emphasis on research and innovation in this country, and we value the role of entrepreneurs in job creation. Canada also offers a supportive tax and regulatory environment for entrepreneurs. All these factors are combining to really promote the growth of entrepreneurs and entrepreneurship from coast to coast."





Read the full article here.

 

[Ally]

Is Post-Secondary education still a good investment?





A new report says some students aren't getting as much of a return on their education investment as they should because they aren't focusing on the ideal fields.




The CIBC World Markets report says that while completing a post-secondary education is still the best route to a well-paying, high-quality job, the premium is dropping as too few students are graduating from programs that are in high demand.





Read the full article here.