December 2011 Canadian Economic Fundamentals
- Thread starter Ally
- Start date
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada home ownership slightly more affordable: RBC survey
OTTAWA - New reports from bank economists find low interest rates are keeping Canadian house prices within reach of homebuyers in many markets ` although Vancouver remains an exception because of its sky-high real-estate prices.
The Royal Bank's quarterly report on housing trends, released early Friday, shows housing affordability improved slightly in the third quarter, after two consecutive quarters when things got worse.
RBC chief economist Craig Wright says a lower interest rate environment, which includes mortgage rates, is helping to reduce the cost of home ownership.
Read the full article here.
OTTAWA - New reports from bank economists find low interest rates are keeping Canadian house prices within reach of homebuyers in many markets ` although Vancouver remains an exception because of its sky-high real-estate prices.
The Royal Bank's quarterly report on housing trends, released early Friday, shows housing affordability improved slightly in the third quarter, after two consecutive quarters when things got worse.
RBC chief economist Craig Wright says a lower interest rate environment, which includes mortgage rates, is helping to reduce the cost of home ownership.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Growth in commercial real estate markets expected in 2012
Commercial real estate markets have been relatively flat this year, but improving fundamentals mean a more positive trend is expected in 2012, according to the National Association of Realtors[sup]Â[/sup].
Lawrence Yun, NAR chief economist, said there is little change in most of the commercial market sectors. "Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant's market," he said. "However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year."
The commercial real estate market is expected to follow the general economy. "Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn't ramp up, rent growth could potentially approach 7 percent over the next two years," Yun said.
Read the full article here.
Commercial real estate markets have been relatively flat this year, but improving fundamentals mean a more positive trend is expected in 2012, according to the National Association of Realtors[sup]Â[/sup].
Lawrence Yun, NAR chief economist, said there is little change in most of the commercial market sectors. "Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant's market," he said. "However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year."
The commercial real estate market is expected to follow the general economy. "Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn't ramp up, rent growth could potentially approach 7 percent over the next two years," Yun said.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canadians rein in debts amid uncertainty
Canadians are getting the message on debt.
After months of warnings from senior officials like Bank of Canada Governor Mark Carney, consumers are pulling back on their borrowing. In particular, the rate at which they are racking up new mortgage debt has slowed, according to a new analysis by Canada Mortgage and Housing Corp., a phenomenon that is partly caused by a cooling housing market.
Read the full article here.
Canadians are getting the message on debt.
After months of warnings from senior officials like Bank of Canada Governor Mark Carney, consumers are pulling back on their borrowing. In particular, the rate at which they are racking up new mortgage debt has slowed, according to a new analysis by Canada Mortgage and Housing Corp., a phenomenon that is partly caused by a cooling housing market.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada's help-wanted index falls for third month
OTTAWA ` After declining for three straight months, the Conference Board of Canada's help-wanted index is roughly in the same spot it was at the onset of the recession, the board said in its monthly report, released Wednesday.
The index, based on new online job listings during the month on websites across the country, fell 2.8 percentage points in October, bringing it to 113.6.
"The three declines combined to wipe out most of the healthy gains recorded in June and July, bringing the index close to what it was two years ago at the start of the recession," the board said in its report. "The labour market lost 54,000 jobs in October, and the index points to more (although moderate) losses over the near term."
Read the full article here.
OTTAWA ` After declining for three straight months, the Conference Board of Canada's help-wanted index is roughly in the same spot it was at the onset of the recession, the board said in its monthly report, released Wednesday.
The index, based on new online job listings during the month on websites across the country, fell 2.8 percentage points in October, bringing it to 113.6.
"The three declines combined to wipe out most of the healthy gains recorded in June and July, bringing the index close to what it was two years ago at the start of the recession," the board said in its report. "The labour market lost 54,000 jobs in October, and the index points to more (although moderate) losses over the near term."
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Immigration shifts west from Ontario
Canada's immigration patterns are changing, experts say, and western provinces are the beneficiaries.
Only a decade ago, Ontario took in the lion's share of Canada's immigrants, with half going to Toronto and 60 per cent to Ontario as a whole. Last year, only 42 per cent of all immigrants went to Ontario, statistics show.
At the same time, immigration to Western Canada has surged, especially in Alberta, Saskatchewan and Manitoba.
Read the full article here.
Canada's immigration patterns are changing, experts say, and western provinces are the beneficiaries.
Only a decade ago, Ontario took in the lion's share of Canada's immigrants, with half going to Toronto and 60 per cent to Ontario as a whole. Last year, only 42 per cent of all immigrants went to Ontario, statistics show.
At the same time, immigration to Western Canada has surged, especially in Alberta, Saskatchewan and Manitoba.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
China may ease real estate restrictions in 2012
SHANGHAI -(MarketWatch)- China may ease controls on the property market in the second quarter of 2012 as a steep drop in prices will push economic growth below 9%--an unspoken but key target for Beijing--a local university report said Monday.
The market correction is gathering the pace, and an overall drop in transaction volumes, prices and investment will come in the first quarter due to the current policy tightening, a Renmin University of China report published in the state-run China Securities Journal said.
"However, given local governments' high reliance on land sales for fiscal revenue and the 9% bottom line for China's economic growth, the correction in the property sector won't exceed 25%," the report said.
Read the full article here.
SHANGHAI -(MarketWatch)- China may ease controls on the property market in the second quarter of 2012 as a steep drop in prices will push economic growth below 9%--an unspoken but key target for Beijing--a local university report said Monday.
The market correction is gathering the pace, and an overall drop in transaction volumes, prices and investment will come in the first quarter due to the current policy tightening, a Renmin University of China report published in the state-run China Securities Journal said.
"However, given local governments' high reliance on land sales for fiscal revenue and the 9% bottom line for China's economic growth, the correction in the property sector won't exceed 25%," the report said.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Funds and refiners ponder oil Armageddon, war on Iran
Oil consuming nations, hedge funds and big oil refineries are quietly preparing for a Doomsday scenario: An attack on Iran that would halt oil supplies from OPEC's second-largest producer.
Most political analysts and oil traders say the probability of military action is low, but they caution the risks of such an event have risen as the West and Israel grow increasingly alarmed by signs that Tehran is building nuclear weapons.
That has Chinese refiners drawing up new contingency plans, hedge funds taking out options on $170 crude, and energy experts scrambling to determine how a disruption in Iran's oil supply -- however remote the possibility -- would impact world markets.
Read the full article here.
Oil consuming nations, hedge funds and big oil refineries are quietly preparing for a Doomsday scenario: An attack on Iran that would halt oil supplies from OPEC's second-largest producer.
Most political analysts and oil traders say the probability of military action is low, but they caution the risks of such an event have risen as the West and Israel grow increasingly alarmed by signs that Tehran is building nuclear weapons.
That has Chinese refiners drawing up new contingency plans, hedge funds taking out options on $170 crude, and energy experts scrambling to determine how a disruption in Iran's oil supply -- however remote the possibility -- would impact world markets.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canadian growth to pick up in 2012
OTTAWA ` Most, but not all, provinces should see more economic growth next year than they`ve had this year, and western provinces will continue to be the leaders in economic growth in 2012, according to a report.
The Conference Board of Canada said Friday that the West will benefit from higher commodity prices and related investments in the energy sector. Central and Eastern Canada, on the other hand, are expected to be hampered by things such as provincial government efforts to reduce deficits, a weak U.S. economy and sluggish consumer spending.
`Private-sector activity will pick up in 2012, helping to offset sharp declines in federal and provincial infrastructure spending,` Marie-Christine Bernard, the Conference Board`s associate director of provincial forecasts, said in a statement. `But despite little direct exposure to European markets, provincial economies would be affected if the (European Union) sovereign debt crisis spread globally. As a result, risks to the forecast remain elevated.`
Read the full article here.
OTTAWA ` Most, but not all, provinces should see more economic growth next year than they`ve had this year, and western provinces will continue to be the leaders in economic growth in 2012, according to a report.
The Conference Board of Canada said Friday that the West will benefit from higher commodity prices and related investments in the energy sector. Central and Eastern Canada, on the other hand, are expected to be hampered by things such as provincial government efforts to reduce deficits, a weak U.S. economy and sluggish consumer spending.
`Private-sector activity will pick up in 2012, helping to offset sharp declines in federal and provincial infrastructure spending,` Marie-Christine Bernard, the Conference Board`s associate director of provincial forecasts, said in a statement. `But despite little direct exposure to European markets, provincial economies would be affected if the (European Union) sovereign debt crisis spread globally. As a result, risks to the forecast remain elevated.`
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Bank of Canada to stay 'flexible' on interest rates
The Bank of Canada will continue to take a loose approach to meeting its 2-per-cent inflation target because of the deteriorating global outlook and a European debt crisis that is `barely contained,` Governor Mark Carney says.
In his first remarks on inflation-control since the federal government renewed the central bank`s mandate earlier this month, Mr. Carney defended his `flexible` approach, which has seen him keep interest rates at 1 per cent for more than a year, even as gains in consumer prices have exceeded 2 per cent for much of that time. He has said several times in recent months that his mandate includes leeway to take longer than usual to return inflation to the target pace, to protect against economic or financial shocks.
Read the full article here.
The Bank of Canada will continue to take a loose approach to meeting its 2-per-cent inflation target because of the deteriorating global outlook and a European debt crisis that is `barely contained,` Governor Mark Carney says.
In his first remarks on inflation-control since the federal government renewed the central bank`s mandate earlier this month, Mr. Carney defended his `flexible` approach, which has seen him keep interest rates at 1 per cent for more than a year, even as gains in consumer prices have exceeded 2 per cent for much of that time. He has said several times in recent months that his mandate includes leeway to take longer than usual to return inflation to the target pace, to protect against economic or financial shocks.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada jobs: What the analysts say
TORONTO ` The Canadian economy lost 18,600 jobs in November, Statistics Canada said on Friday. The loss of 53,300 part-time jobs was partially offset by a gain of 34,600 in full-time employment.
Here`s what the analysts say:
CAMILLA SUTTON, CHIEF CURRENCY STRATEGIST AT SCOTIA CAPITAL
`Disappointing. Not much in the details besides what was in the headlines.`
`The full time (gain) was positive, but besides that, it`s a very disappointing number, so the second disappointing number in a row for Canada.`
`It feeds into the (Bank of Canada`s) more dovish stance, (which) has been build on the external environment as opposed to the domestic environment.`
Read the full article here.
TORONTO ` The Canadian economy lost 18,600 jobs in November, Statistics Canada said on Friday. The loss of 53,300 part-time jobs was partially offset by a gain of 34,600 in full-time employment.
Here`s what the analysts say:
CAMILLA SUTTON, CHIEF CURRENCY STRATEGIST AT SCOTIA CAPITAL
`Disappointing. Not much in the details besides what was in the headlines.`
`The full time (gain) was positive, but besides that, it`s a very disappointing number, so the second disappointing number in a row for Canada.`
`It feeds into the (Bank of Canada`s) more dovish stance, (which) has been build on the external environment as opposed to the domestic environment.`
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Years of labour strife looms: Report
Welcome to the year of labour strife.
The chances of work stoppages in Canada`s public sector are heightened next year as government workers -- many of whom will see their contracts up for renewal -- get frustrated by demands for more concessions, a Conference Board of Canada report predicted Friday.
Read the full article here.
Welcome to the year of labour strife.
The chances of work stoppages in Canada`s public sector are heightened next year as government workers -- many of whom will see their contracts up for renewal -- get frustrated by demands for more concessions, a Conference Board of Canada report predicted Friday.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Jobless rate rises unexpectedly in November
Net job losses totaled 18,600 jobs in the month following a hefty 54,000 drop in October, Statistics Canada said on Friday, pointing to a poor economic performance in the final quarter of the year.
That pushed the unemployment rate back up to 7.4 percent, the highest level since June, from 7.3 percent in October.
It also raised the specter that Canada is entering a period of high joblessness similar to that seen in the United States, perhaps forcing the government to reopen its stimulus program. The figures will also encourage the Bank of Canada to keep interest rates on hold at its rate announcement on Tuesday.
Read the full article here.
Net job losses totaled 18,600 jobs in the month following a hefty 54,000 drop in October, Statistics Canada said on Friday, pointing to a poor economic performance in the final quarter of the year.
That pushed the unemployment rate back up to 7.4 percent, the highest level since June, from 7.3 percent in October.
It also raised the specter that Canada is entering a period of high joblessness similar to that seen in the United States, perhaps forcing the government to reopen its stimulus program. The figures will also encourage the Bank of Canada to keep interest rates on hold at its rate announcement on Tuesday.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Top 10 property safe havens abroad
The euro is in crisis. Stock markets are in freefall. Two prime ministers have been sacked. Italian debt is at record levels, and Spain faces an early election tomorrow. Across the pond, America`s annual budget deficit is measured in trillions.
One by one the traditional destinations for British house-hunters are becoming badlands. Rather than stay in the quagmire, it`s time for buyers to seek new pastures. There are always safe havens if you look hard enough.
Read the full article here.
The euro is in crisis. Stock markets are in freefall. Two prime ministers have been sacked. Italian debt is at record levels, and Spain faces an early election tomorrow. Across the pond, America`s annual budget deficit is measured in trillions.
One by one the traditional destinations for British house-hunters are becoming badlands. Rather than stay in the quagmire, it`s time for buyers to seek new pastures. There are always safe havens if you look hard enough.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canadian economy caught between a bloc and a scarred place: RBC
OTTAWA ` The Canadian economy will walk the line in 2012 between a downturn in Europe and continuing growth in the United States, according to a an outlook issued Tuesday by RBC Economics.
Of course, that's all assuming European policy-makers finally take action to deal with the currency bloc's debt crisis, said RBC chief economist Craig Wright.
But if they do, Canada will experience moderate growth in the economy of 2.5 per cent, Wright said.
Supporting that expansion will be low Canadian interest rates, high commodity prices and a U.S. economy that should also expand at a 2.5 per cent pace despite continuing high unemployment and its blighted housing market.
Read the full article here.
OTTAWA ` The Canadian economy will walk the line in 2012 between a downturn in Europe and continuing growth in the United States, according to a an outlook issued Tuesday by RBC Economics.
Of course, that's all assuming European policy-makers finally take action to deal with the currency bloc's debt crisis, said RBC chief economist Craig Wright.
But if they do, Canada will experience moderate growth in the economy of 2.5 per cent, Wright said.
Supporting that expansion will be low Canadian interest rates, high commodity prices and a U.S. economy that should also expand at a 2.5 per cent pace despite continuing high unemployment and its blighted housing market.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Bank of Canada warns Europe deteriorated
OTTAWA ` The Bank of Canada warned Tuesday that economic conditions in Europe have worsened and will be "more pronounced" than originally thought, but said growth in this country will be stronger than expected through the second half of this year.
"Conditions in global financial markets have deteriorated as the sovereign debt crisis in Europe has deepened," the central bank said in announcing it was keeping its key interest rate on hold at one per cent.
"Additional measures will be required to contain the European crisis," it said. "The recession in Europe is now expected to be more pronounced than the bank anticipated in October."
Read the full article here.
OTTAWA ` The Bank of Canada warned Tuesday that economic conditions in Europe have worsened and will be "more pronounced" than originally thought, but said growth in this country will be stronger than expected through the second half of this year.
"Conditions in global financial markets have deteriorated as the sovereign debt crisis in Europe has deepened," the central bank said in announcing it was keeping its key interest rate on hold at one per cent.
"Additional measures will be required to contain the European crisis," it said. "The recession in Europe is now expected to be more pronounced than the bank anticipated in October."
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada leads Triple-A peers, has shock absorbers
The Fitch Ratings agency said today that the Canadian economy looks to be heading for slower-than-expected growth and at risk of shocks from the euro zone, while jobs are being lost, after a strong 2010 boosted by higher commodity prices and government stimulus measures.
"Still, the Canadian government's demonstrated ability to put forth a credible long-term fiscal consolidation plan provides critical support for the country's triple-A rating," Fitch said in a statement. "The government's commitment to eliminate the federal budget deficit by the middle of this decade even in the context of weaker growth puts Canada ahead of other peers rated triple-A."
Read the full article here.
The Fitch Ratings agency said today that the Canadian economy looks to be heading for slower-than-expected growth and at risk of shocks from the euro zone, while jobs are being lost, after a strong 2010 boosted by higher commodity prices and government stimulus measures.
"Still, the Canadian government's demonstrated ability to put forth a credible long-term fiscal consolidation plan provides critical support for the country's triple-A rating," Fitch said in a statement. "The government's commitment to eliminate the federal budget deficit by the middle of this decade even in the context of weaker growth puts Canada ahead of other peers rated triple-A."
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Apartment industry a beacon in uncertain economic times, experts find
Panel Discussion at the Real Estate Forum to Discuss Remarkable Trends, Bold Forecasts
BURLINGTON, ON, Nov. 14, 2011 /CNW/ - The purpose-built high-rise rental apartment industry has defied expectations, offering a stable investment opportunity through the 2008 recession. The industry's remarkable performance, out performing other real estate asset classes, has made the sector a magnet for investors looking for good returns on their investment.
These findings were among many released in a State of the Industry report released by ROCK Advisors Brokerage Inc. ROCK CEO Derek Lobo, who commissioned the report, will discuss these findings at the end of November at the Real Estate Forum, before a sold-out crowd at a conference held from November 29 to December 1[sup]st at the Metro Toronto Convention Centre. On Thursday, December 1st[/sup], at 9:30 a.m., Lobo will moderate a panel discussion of industry experts on a panel entitled "Has the Apartment Market Out-Performed All Other Real Estate Asset Classes? What is it Likely to do Next Year?"
Read the full article here.
Panel Discussion at the Real Estate Forum to Discuss Remarkable Trends, Bold Forecasts
BURLINGTON, ON, Nov. 14, 2011 /CNW/ - The purpose-built high-rise rental apartment industry has defied expectations, offering a stable investment opportunity through the 2008 recession. The industry's remarkable performance, out performing other real estate asset classes, has made the sector a magnet for investors looking for good returns on their investment.
These findings were among many released in a State of the Industry report released by ROCK Advisors Brokerage Inc. ROCK CEO Derek Lobo, who commissioned the report, will discuss these findings at the end of November at the Real Estate Forum, before a sold-out crowd at a conference held from November 29 to December 1[sup]st at the Metro Toronto Convention Centre. On Thursday, December 1st[/sup], at 9:30 a.m., Lobo will moderate a panel discussion of industry experts on a panel entitled "Has the Apartment Market Out-Performed All Other Real Estate Asset Classes? What is it Likely to do Next Year?"
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada not renewing its Kyoto commitment: Environment Minister Peter Kent
Canada will not renew its commitment to the Kyoto Protocol once it expires at the end of next year, Environment Minister Peter Kent confirmed Monday in Durban, South Africa.
The Kyoto agreement, an update to the United Nations Convention on Climate Change, is the only legally binding treaty in the world that requires countries to reduce greenhouse gas emissions that trap heat in the atmosphere.
Read the full article here.
Canada will not renew its commitment to the Kyoto Protocol once it expires at the end of next year, Environment Minister Peter Kent confirmed Monday in Durban, South Africa.
The Kyoto agreement, an update to the United Nations Convention on Climate Change, is the only legally binding treaty in the world that requires countries to reduce greenhouse gas emissions that trap heat in the atmosphere.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada's building permits soar in October
OTTAWA ` The value of Canadian building permits unexpectedly soared by 11.9% in October from September, as strength in the populous province of Ontario helped end three consecutive monthly falls, Statscan data indicated on Tuesday.
The increase ` much greater than the 1.6% anticipated by market operators ` was the largest since the 20.9% advance recorded in May 2011.
Statscan revised its figures for September to show a month-on-month drop of 4.1% versus 4.9% initially. The overall value of permits issued was 2.2% higher than in October 2010.
Read the full article here.
OTTAWA ` The value of Canadian building permits unexpectedly soared by 11.9% in October from September, as strength in the populous province of Ontario helped end three consecutive monthly falls, Statscan data indicated on Tuesday.
The increase ` much greater than the 1.6% anticipated by market operators ` was the largest since the 20.9% advance recorded in May 2011.
Statscan revised its figures for September to show a month-on-month drop of 4.1% versus 4.9% initially. The overall value of permits issued was 2.2% higher than in October 2010.
Read the full article here.