February 2014 Canadian Economic Fundamentals

[Ally]

Investment trends for 2014 revealed





Construction activity will rise significantly over the next few years in the industrial and office sectors, with developers hoping a stronger economy will see these properties leased quickly," reads the 2014 Real Estate Investment Trends report from property management titan Morguard Corporation. "The ongoing delivery of new supply in the nation's major downtown office nodes could lead to increased vacancy and downward pressure on rents, if demand fails to keep pace over the next few years."





That last bit may the be one dark spot in an otherwise bright forecast for the sector, more specifically, the commercial real estate segment of the market.





Read the full article here.

 

[Ally]

24% of Canadians see their homes as main source of retirement income





Almost one quarter of Canadians say they are looking to their homes as the primary source of retirement income, according to new research.





Twenty-four per cent of respondents to Sun Life Financial`s annual `unretirement` survey said they agree with the statement, `My residential real estate will serve as my primary source of retirement income.`





Read the full article here.

 

[Ally]

Canadians optimistic about retirement, but still struggling to save





TORONTO - Canadians are feeling increasingly optimistic when it comes to retirement.








A Sun Life survey conducted in November has found that, on average, Canadians now expect they will be able to retire by age 66. That's one year earlier than the average response in a survey a year ago and down from age 69 in a survey in 2011.





Read the full article here.

 

[Ally]

Sliding loonie signals growing U.S. momentum





Bank of Canada Governor Stephen Poloz said in an interview that he remains concerned about the state of the Canadian economy in the wake of the financial crisis, but views the loonie`s sharp slide in recent months as a welcome development, since it signals growing momentum in the U.S. economy.





Read the full article here.

 

[Ally]

The 2.99% 5-year fixed mortgage is back





The five-year fixed mortgage at an advertised rate below three per cent has returned to Canada for the first time since last year.





Meridian Credit Union, the largest credit union in Canada, announced this week it had lowered its benchmark five-year fixed-rate mortgage to 2.99 per cent.





Read the full article here.

 

[Ally]

Canada's retail sales plunge most in a year





Canadian retailers ended 2013 with their biggest one-month drop in a year amid severe weather that hampered the nation`s expansion in December.








Sales fell 1.8% to $40.2 billion, Statistics Canada said Friday in Ottawa, compared with a 0.4% drop that was the median forecast in a Bloomberg survey with 20 responses. That followed a revised 0.5% gain in November.





Read the full article here.

 

[Ally]

Canadian wages increased during the recession




We all know that employment falls during recessions, and many probably think it is equally evident that wages do as well. To be sure, there is downward pressure on wages, but sometimes the effect is barely perceptible.








Read the full article here.

 

[Ally]

Rates on hold until economic data improves





OTTAWA ` The Bank of Canada should keep its key interest rate on hold until economic data persuades it otherwise, central bank chief Stephen Poloz said on Tuesday, adding that he was not worried about calls from some international players to tighten policy.





Read the full article here.

 

[Ally]

RBC says housing affordability to deteriorate with rising mortgage costs






OTTAWA - The Royal Bank of Canada (TSX:RY) says the ability of Canadians to keep up with housing costs has been improving of late, but warns that's about to change.








RBC's latest housing affordability measure shows home servicing costs relative to incomes dipped slightly in the last three months of 2013, after having risen the previous two quarters.








Read the full article here.

 

[Ally]

Alberta and BC expected to lead job creation boom






Alberta and British Columbia are expected to lead Canada in the creation of new construction jobs over the next 10 years, as national economic activity continues to shift to the west.






`While Alberta`s construction industry has adapted well to conditions to date, there may be recruiting challenges,` said Rosemary Sparks, Executive Director of BuildForce Canada. `There is stiff competition for skilled labour in other provinces, and meeting local needs won`t be easy. As retirements rise, we are also facing the potential loss of thousands of skilled and experienced workers.`





Read the full article here.

 

[Ally]

Canadian families' wealth continues to grow





OTTAWA ` Canadian families have become wealthier over the past several years, with net worth rising despite the well-documented growth in household debt and a setback from the recession, a new Statistics Canada study shows.





In a report that takes a long view on the state of Canadian finances, the agency finds that the 2012 median net worth among family units ` of two or more persons and unattached individuals ` has risen 44.5 per cent since 2005 to $243,800 and up almost 80 per cent since 1999.






Read the full article here.

 

[Ally]

Sinking dollar dents number of cross-border shoppers





The Canadian dollar`s drop to the 91-cent (US) range is prompting more than a third of Lower Mainland residents to think twice about shopping south of the border, according to a survey released Monday.








However, the Insights West poll also found that while Metro Vancouver and Fraser Valley residents are less keen to head to the U.S. than last year, the percentage of people still driving south remains high.




Read the full article here.

 

[Ally]

What makes a neighbourhood walkable?





Walkability offers surprising benefits to our health, the environment, our finances, and our communities.





Health: The average resident of a walkable neighborhood weighs 6-10 pounds less than someone who lives in a sprawling neighborhood.[sup]1[/sup]





Read the full article here.

 

[Ally]

Canada's wealthiest an easy but not particularly rewarding target, economists says





OTTAWA ` Like plump chickens about to be plucked, Canada`s richest one per cent in B.C., Alberta and Ontario could be easy targets in a government tax grab, a conference on Canada`s growing income inequality was told Tuesday.






Read the full article here.

 

[Ally]

Threats of housing bust and household debt still largely overblown





EDMONTON - It hardly qualifies as breaking news, but that doesn`t make it any less true ` the media thrives on conflict, death, fear and destruction.





That`s our bread and butter, and there`s no mystery why. Put a story about a plane crash next to one about a trade deal, and I`ll tell you which one draws more eyeballs, 99 times out of 100.





Read the full article here.

 

[Ally]

Canadian economy ends year with a bang





OTTAWA ` Canada`s economy exited 2013 with a bit of a bang ` ending the year with better-than-expected estimate growth of 2%.





Read the full article here.

 

[Ally]

CMHC to increase mortgage insurance premiums





OTTAWA, February 28, 2014 ` Following the annual review of its insurance products and capital requirements, CMHC will increase its mortgage loan insurance premiums for homeowner and 1 ` 4 unit rental properties effective May 1, 2014.





The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums. This does not apply to mortgages currently insured by CMHC.





Read the full article here.

 

[Ally]

Unretirement ahead for more than half of Canadians





Just 27% of working Canadians expect to be retired at 66. That`s the key finding of this year`s Sun Life Canadian Unretirement` Index. Almost the same number (26%) believe they`ll be working full-time at 66. Another 32% say they`ll be working part-time.





Read the full article here.