January 2011 Canadian Economic Fundamentals
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Predictions for 2011: Interest rates, TSX, and more
BMO Financial Group has come out with its predictions for 2011 and they are, well, predictable.
In Canada, Douglas Porter, BMO Capital Market's deputy chief economist says interest rates will stay put, until at least the late spring of 2011. With rates still so low, it's hard to remember that the Bank of Canada actually raised its overnight rate three times in 2010, bringing it from 0.25 per cent to 1.0 per cent.
Porter also believes British Columbia, Alberta and Saskatchewan will lead Canada's growth with average GDP growth of about 3.5 per cent largely because of commodity prices, and less reliance on the U.S. Economy.
Paul Taylor, chief investment officer with BMO Harris Private Banking, sees signs of recovery in the U.S. With growth at a rate of close to 3 per cent in 2011 and the job outlook should improved lowering unemployment to nine per cent from the current 10 per cent.
Read the full article here.
BMO Financial Group has come out with its predictions for 2011 and they are, well, predictable.
In Canada, Douglas Porter, BMO Capital Market's deputy chief economist says interest rates will stay put, until at least the late spring of 2011. With rates still so low, it's hard to remember that the Bank of Canada actually raised its overnight rate three times in 2010, bringing it from 0.25 per cent to 1.0 per cent.
Porter also believes British Columbia, Alberta and Saskatchewan will lead Canada's growth with average GDP growth of about 3.5 per cent largely because of commodity prices, and less reliance on the U.S. Economy.
Paul Taylor, chief investment officer with BMO Harris Private Banking, sees signs of recovery in the U.S. With growth at a rate of close to 3 per cent in 2011 and the job outlook should improved lowering unemployment to nine per cent from the current 10 per cent.
Read the full article here.
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My real estate wish list for 2011
Canada is still one of the most desired destinations for immigrants and the Canadian real estate market has stayed strong in 2010. As we look to 2011, I believe that with certain improvements, the process of buying and selling a home could be much less stressful, with benefits to both buyers and sellers. With that in mind, here are my five real estate wishes for 2011:
1. Accessible information. Make it mandatory for insurance companies to release information about any insurance claims made in the past 20 years on any home, for a reasonable fee, and as part of their home inspection due diligence. Insurance companies have this info available and use it to help them determine the premium they`ll charge. For example, if your home has suffered a sewage backup in the past, you`ll have difficulty obtaining coverage for your basement. If there`s a high incidence of vandalism in the neighbourhood, this will also increase your premium. The question is: if you were a buyer, wouldn`t you like to know this information in advance? Despite privacy concerns, it would be simple for insurers to remove the name of the owner who made the claim and give details of the claims themselves.
2. Mandatory insurance policies. Require buyers and sellers to purchase a five-year insurance policy to cover structural defects like foundation problems, basement and roof leaks and mould. If this was mandatory, sellers would have to be more up front about prior problems before an agreement was signed. The insurance company would have the resources to sue any seller who made false representations about the home when it was being sold. Also, consider a one-year policy to cover problems with the electrical, plumbing, heating and air-conditioning systems in the home.
Read the full article here.
Canada is still one of the most desired destinations for immigrants and the Canadian real estate market has stayed strong in 2010. As we look to 2011, I believe that with certain improvements, the process of buying and selling a home could be much less stressful, with benefits to both buyers and sellers. With that in mind, here are my five real estate wishes for 2011:
1. Accessible information. Make it mandatory for insurance companies to release information about any insurance claims made in the past 20 years on any home, for a reasonable fee, and as part of their home inspection due diligence. Insurance companies have this info available and use it to help them determine the premium they`ll charge. For example, if your home has suffered a sewage backup in the past, you`ll have difficulty obtaining coverage for your basement. If there`s a high incidence of vandalism in the neighbourhood, this will also increase your premium. The question is: if you were a buyer, wouldn`t you like to know this information in advance? Despite privacy concerns, it would be simple for insurers to remove the name of the owner who made the claim and give details of the claims themselves.
2. Mandatory insurance policies. Require buyers and sellers to purchase a five-year insurance policy to cover structural defects like foundation problems, basement and roof leaks and mould. If this was mandatory, sellers would have to be more up front about prior problems before an agreement was signed. The insurance company would have the resources to sue any seller who made false representations about the home when it was being sold. Also, consider a one-year policy to cover problems with the electrical, plumbing, heating and air-conditioning systems in the home.
Read the full article here.
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Canada's economy is struggling to keep up with resurgent G7
OTTAWA`It may come off as heresy, but Canada is no longer leading the industrialized world out of the recession ` it may be in the process of becoming an economic laggard.
A fresh analysis from economist Jim Stanford of the Canadian Auto Workers paints a far different picture of the economy from what politicians, and indeed some private sector economists, have been telling Canadians for most of the past year.
Rather than No. 1 with a bullet among the G7, Canada could have fallen as far as sixth in recent growth.
That is Stanford`s conclusion after comparing average gross domestic product gains in the last two recorded quarters ` the second and third of 2010, which encompasses six months from April to September.
Canada averaged a 1.7 per cent advance during the period, beating out Italy`s 1.5, but below every other country in the G7. Germany tops the list with an impressive 6.1 per cent in growth.
Read the full article here.
OTTAWA`It may come off as heresy, but Canada is no longer leading the industrialized world out of the recession ` it may be in the process of becoming an economic laggard.
A fresh analysis from economist Jim Stanford of the Canadian Auto Workers paints a far different picture of the economy from what politicians, and indeed some private sector economists, have been telling Canadians for most of the past year.
Rather than No. 1 with a bullet among the G7, Canada could have fallen as far as sixth in recent growth.
That is Stanford`s conclusion after comparing average gross domestic product gains in the last two recorded quarters ` the second and third of 2010, which encompasses six months from April to September.
Canada averaged a 1.7 per cent advance during the period, beating out Italy`s 1.5, but below every other country in the G7. Germany tops the list with an impressive 6.1 per cent in growth.
Read the full article here.
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Canadian economy to slow, economists say
They say an economic boost from a recently announced tax and fiscal stimulus package in the U.S., coupled with the winding down of the stimulus spending programs in Canada, will put the American economy in front this year.
"Here we'll see the U.S. coming back. We'll see Canada slowing down.` We're not going to have a rising unemployment rate or anything like that. But it won't be quite the bragging rights for the finance minister [Jim Flaherty] that he had last year," said economist Mike McCracken, founder of Informetrica Ltd.
Last week, the Canadian Chamber of Commerce also said "more prudent spending" by Canadians is a factor in the country's slowing economic growth. Gross domestic product expanded by 2.3 per cent in the second quarter of 2010 and only one per cent in the third quarter. Some economists expect growth to have been only 1.5 per cent in the fourth quarter.
The federal government posted a deficit of $4.1 billion in October, up from $3.1 billion in the same month last year, the Department of Finance said last month. October's figure brings the total deficit for the government's fiscal year to $21.5 billion over seven months, compared with $31.9 billion in the same period in 2009.
Read the full article here.
They say an economic boost from a recently announced tax and fiscal stimulus package in the U.S., coupled with the winding down of the stimulus spending programs in Canada, will put the American economy in front this year.
"Here we'll see the U.S. coming back. We'll see Canada slowing down.` We're not going to have a rising unemployment rate or anything like that. But it won't be quite the bragging rights for the finance minister [Jim Flaherty] that he had last year," said economist Mike McCracken, founder of Informetrica Ltd.
Last week, the Canadian Chamber of Commerce also said "more prudent spending" by Canadians is a factor in the country's slowing economic growth. Gross domestic product expanded by 2.3 per cent in the second quarter of 2010 and only one per cent in the third quarter. Some economists expect growth to have been only 1.5 per cent in the fourth quarter.
The federal government posted a deficit of $4.1 billion in October, up from $3.1 billion in the same month last year, the Department of Finance said last month. October's figure brings the total deficit for the government's fiscal year to $21.5 billion over seven months, compared with $31.9 billion in the same period in 2009.
Read the full article here.
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Canadian dollar, TSX retreat
The Canadian dollar kicked off the new year above parity but fell slightly from Friday's two-year high as commodity prices pulled back from record territory.
The loonie gave back 0.39 of a cent to close at 100.15 cents US as commodities moved lower.
Recent strength in the Canadian dollar has been fuelled by higher crude prices, which peaked early Tuesday at a two-year high before losing ground.
The February crude oil contract was down $2.17 at $89.39 US a barrel. The March copper contract on the Nymex fell nine cents to $4.37 US after reaching a record Friday.
The February gold contract lost $44.10, or three per cent, to $1,378.80 US after hitting a record high Monday.
Read the full article here.
The Canadian dollar kicked off the new year above parity but fell slightly from Friday's two-year high as commodity prices pulled back from record territory.
The loonie gave back 0.39 of a cent to close at 100.15 cents US as commodities moved lower.
Recent strength in the Canadian dollar has been fuelled by higher crude prices, which peaked early Tuesday at a two-year high before losing ground.
The February crude oil contract was down $2.17 at $89.39 US a barrel. The March copper contract on the Nymex fell nine cents to $4.37 US after reaching a record Friday.
The February gold contract lost $44.10, or three per cent, to $1,378.80 US after hitting a record high Monday.
Read the full article here.
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Downtown lights burned bright in 2010
Despite predictions to the contrary, 2010 was not the year the Canadian office market collapsed under the weight of the recession.
In fact, 2010 will likely be remembered as a pleasant surprise. Few analysts anticipated the relatively strong ` in some cases remarkably robust ` performance in this economically sensitive sector, and many had to revise or completely reverse their predictions.
Driven by huge demand for office space in major centres such as Toronto and Calgary, downtown office vacancy rates, nationwide, declined from 8.5 per cent in the fourth quarter of 2009 to 8 per cent in the same quarter this year, according to data compiled by commercial real estate consultants CB Richard Ellis Canada.
In that same period, the percentage of vacant space on sublease nationwide ` a telling sign of overall economic confidence across the business sector ` declined significantly, from 27.4 per cent to 19.9 per cent.
Read the full article here.
Despite predictions to the contrary, 2010 was not the year the Canadian office market collapsed under the weight of the recession.
In fact, 2010 will likely be remembered as a pleasant surprise. Few analysts anticipated the relatively strong ` in some cases remarkably robust ` performance in this economically sensitive sector, and many had to revise or completely reverse their predictions.
Driven by huge demand for office space in major centres such as Toronto and Calgary, downtown office vacancy rates, nationwide, declined from 8.5 per cent in the fourth quarter of 2009 to 8 per cent in the same quarter this year, according to data compiled by commercial real estate consultants CB Richard Ellis Canada.
In that same period, the percentage of vacant space on sublease nationwide ` a telling sign of overall economic confidence across the business sector ` declined significantly, from 27.4 per cent to 19.9 per cent.
Read the full article here.
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Profit-taking slices oil price
CALGARY - The price of benchmark crude oil slipped below $90 US per barrel Tuesday, falling 2.4 per cent or $2.17 to $89.38 in New York, in a move analysts said was more of a one-day anomaly than indicative of a trend.
The tumble from Monday's two-year high failed to pull oil stocks along - Calgary-based Suncor Energy, for example, which often falls in lockstep with the price of oil, was down just 0.6 per cent to $38.04, as the S&P/TSX Energy Index lost only one point to 3,138.94.
Analysts pointed to profit-taking on higher volumes to explain the fall in near-month West Texas Intermediate oil futures, which hit an early peak of $92.07 before falling as low as $88.36, then recovering.
"The fact it happened does not surprise me that much," said Martin King, an analyst for Calgary-based FirstEnergy Capital.
"It seemed to run so hard last week and into this week. Everybody was getting pretty giddy yesterday (Monday) ... and it seemed like this whole enthusiasm for the commodities sector really got ahead of itself, in my view."
Read the full article here.
CALGARY - The price of benchmark crude oil slipped below $90 US per barrel Tuesday, falling 2.4 per cent or $2.17 to $89.38 in New York, in a move analysts said was more of a one-day anomaly than indicative of a trend.
The tumble from Monday's two-year high failed to pull oil stocks along - Calgary-based Suncor Energy, for example, which often falls in lockstep with the price of oil, was down just 0.6 per cent to $38.04, as the S&P/TSX Energy Index lost only one point to 3,138.94.
Analysts pointed to profit-taking on higher volumes to explain the fall in near-month West Texas Intermediate oil futures, which hit an early peak of $92.07 before falling as low as $88.36, then recovering.
"The fact it happened does not surprise me that much," said Martin King, an analyst for Calgary-based FirstEnergy Capital.
"It seemed to run so hard last week and into this week. Everybody was getting pretty giddy yesterday (Monday) ... and it seemed like this whole enthusiasm for the commodities sector really got ahead of itself, in my view."
Read the full article here.
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Small, medium business handled recession better: Report
CALGARY - Canadian small-and medium-sized businesses better weathered the recession relative to large firms in the private sector, according to a new report on small businesses and the labour market from RBC Economics.
However, the report released Wednesday said private employment at SMEs in Alberta dropped 7.4 per cent compared to 5.6 per cent among large firms.
"The main driver appears to be in the construction sector" where SME employment fell by nine per cent compared with a gain of 1.1 per cent at large firms, said the report.
The employment rate in the manufacturing sector of large firms fell by 19 per cent, but SMEs cut payrolls in the manufacturing sector by a more moderate 13.1 per cent, added RBC.
Read the full article here.
CALGARY - Canadian small-and medium-sized businesses better weathered the recession relative to large firms in the private sector, according to a new report on small businesses and the labour market from RBC Economics.
However, the report released Wednesday said private employment at SMEs in Alberta dropped 7.4 per cent compared to 5.6 per cent among large firms.
"The main driver appears to be in the construction sector" where SME employment fell by nine per cent compared with a gain of 1.1 per cent at large firms, said the report.
The employment rate in the manufacturing sector of large firms fell by 19 per cent, but SMEs cut payrolls in the manufacturing sector by a more moderate 13.1 per cent, added RBC.
Read the full article here.
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Oil's $100 destiny: Can it stick?
CALGARY - After a wild ride over the past two years, oil prices are poised to break back through the $100 US a barrel mark in early 2011, industry observers say.
But whether they stay there will be the defining theme of the next 12 months.
Oil prices opened 2010 at $81.51 and fluctuated within a range of $70 to $80 for most of the year, hitting a low of $68.01 on June 20. After flirting with $90 several times through the year, crude broke key resistance levels by the end of the year amid signs of economic recovery after two years of recession.
According to Scotiabank commodities expert Patricia Mohr, the price moves are due to stronger demand growth in the U.S. and China, the world's two top consumers.
"It's turned out to be quite a strong year for crude demand," she said. "Demand has really moved up quite a lot. I expect supply and demand conditions to stay in balance and maybe even tighten in 2011."
Read the full article here.
CALGARY - After a wild ride over the past two years, oil prices are poised to break back through the $100 US a barrel mark in early 2011, industry observers say.
But whether they stay there will be the defining theme of the next 12 months.
Oil prices opened 2010 at $81.51 and fluctuated within a range of $70 to $80 for most of the year, hitting a low of $68.01 on June 20. After flirting with $90 several times through the year, crude broke key resistance levels by the end of the year amid signs of economic recovery after two years of recession.
According to Scotiabank commodities expert Patricia Mohr, the price moves are due to stronger demand growth in the U.S. and China, the world's two top consumers.
"It's turned out to be quite a strong year for crude demand," she said. "Demand has really moved up quite a lot. I expect supply and demand conditions to stay in balance and maybe even tighten in 2011."
Read the full article here.
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Russia deals blow to Canadian oil
Something very important happened in the oil world on Jan. 1, 2011 that should be a wake-up call for Canada's oilpatch and the country's politicians.
As the clocked ticked over into 2011, a new pipeline -- a spur off the East Siberia Pacific Ocean pipeline -- began delivering 300,000 barrels a day of oil from Russia to China.
It may come as a surprise to many, but Russia seems to have realized long before Canada that having more than one market for its oil is a good idea because it diversifies risk.
The fact a pipeline is now operating -- in addition to the approximately 100,000 barrels a day that are also transported by rail from Russia to China -- means Russia is slowly but surely gaining a foothold into one of the largest energy-consuming nations on the planet.
Read the full article here.
Something very important happened in the oil world on Jan. 1, 2011 that should be a wake-up call for Canada's oilpatch and the country's politicians.
As the clocked ticked over into 2011, a new pipeline -- a spur off the East Siberia Pacific Ocean pipeline -- began delivering 300,000 barrels a day of oil from Russia to China.
It may come as a surprise to many, but Russia seems to have realized long before Canada that having more than one market for its oil is a good idea because it diversifies risk.
The fact a pipeline is now operating -- in addition to the approximately 100,000 barrels a day that are also transported by rail from Russia to China -- means Russia is slowly but surely gaining a foothold into one of the largest energy-consuming nations on the planet.
Read the full article here.
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New federal environment minister calls oilsands 'ethical oil'
Canada's new Environment Minister Peter Kent says the oilsands have been unfairly demonized as an ecologically destructive development, lauding the resource as "ethical oil" and an economic boon for the entire country.
On his second day in the federal environmental portfolio, the Toronto-area Conservative MP reiterated his predecessor's pledge to enhance water monitoring in northern Alberta's vast oilsands region. However, he said labels such as "dirty oil" and claims that bitumen extraction is the most destructive industrial activity on the planet are overblown.
"There has been a lot of disinformation and outright misinformation," Kent told the Herald on Wednesday.
"There has been a demonizing of a legitimate resource," he added. "It is ethical oil. It is regulated oil. And it's secure oil in a world where many of the free world's oil sources are somewhat less secure."
Kent plans to visit Alberta early in his tenure.
Read the full article here.
Canada's new Environment Minister Peter Kent says the oilsands have been unfairly demonized as an ecologically destructive development, lauding the resource as "ethical oil" and an economic boon for the entire country.
On his second day in the federal environmental portfolio, the Toronto-area Conservative MP reiterated his predecessor's pledge to enhance water monitoring in northern Alberta's vast oilsands region. However, he said labels such as "dirty oil" and claims that bitumen extraction is the most destructive industrial activity on the planet are overblown.
"There has been a lot of disinformation and outright misinformation," Kent told the Herald on Wednesday.
"There has been a demonizing of a legitimate resource," he added. "It is ethical oil. It is regulated oil. And it's secure oil in a world where many of the free world's oil sources are somewhat less secure."
Kent plans to visit Alberta early in his tenure.
Read the full article here.
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Oil rallies to $90 on strong U.S. job data
NEW YORK - Oil prices bounced back to above $90 a barrel on Wednesday as unexpectedly big gains in U.S. private sector jobs spurred optimism the economy was recovering at a faster pace.
Wall Street and commodities markets latched on to the ADP Employer Services employment report, which showed the biggest rise in its data which goes back to 2000. Oil shook off early losses and turned positive after failing to drop below $88 a barrel.
Oil fell earlier in the day after suffering the biggest single-day drop since mid-November on Tuesday. Crude was initially led lower by a stronger dollar, which typically weighs on commodities as they become more expensive for buyers using other currencies.
Markets are now awaiting the release of December U.S. non-farm payrolls data due out on Friday for further signs the U.S. economy is recovering more quickly than expected.
Read the full article here.
NEW YORK - Oil prices bounced back to above $90 a barrel on Wednesday as unexpectedly big gains in U.S. private sector jobs spurred optimism the economy was recovering at a faster pace.
Wall Street and commodities markets latched on to the ADP Employer Services employment report, which showed the biggest rise in its data which goes back to 2000. Oil shook off early losses and turned positive after failing to drop below $88 a barrel.
Oil fell earlier in the day after suffering the biggest single-day drop since mid-November on Tuesday. Crude was initially led lower by a stronger dollar, which typically weighs on commodities as they become more expensive for buyers using other currencies.
Markets are now awaiting the release of December U.S. non-farm payrolls data due out on Friday for further signs the U.S. economy is recovering more quickly than expected.
Read the full article here.
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Go north, young man, go north
Unless the Winter Olympics are on television or someone is clubbing baby seals, Americans don't pay much attention to what's happening in Canada. It's as if we live in a house with a set of quiet, orderly neighbors on one side and a bachelor pad with drunken parties, girls in the hot tub and occasional gunshot eruptions on the other. To whom would you pay more attention?
I dare say Americans could correctly name the president of Mexico (Filipe Calderon) over the prime minister of Canada (Stephen Harper) by a margin of 5-to-1. That's too bad. While we have every reason to fear the disorder spilling over from our increasingly lawless neighbor to the south, our well-mannered Canadian neighbors have pulled their act together. We could learn a lot from them.
Look what's not happening in Canada. There is no real estate crisis. There is no banking crisis. There is no unemployment crisis. There is no sovereign debt crisis. Recent reports suggest that consumers are loading up too much debt, but Canada shares that problem with nearly every other country in the industrialized world.
Among the Group of Seven nations, which also include the United States, France, Japan, Germany, the United Kingdom and Italy, Canada's economic activity has come the closest to returning to the pre-recession peak. The country has recovered three-quarters of all jobs it lost. The International Monetary Fund estimates that Canada will be the only country among the G-7 to have achieved a balanced budget by 2015.
Read the full article here.
Unless the Winter Olympics are on television or someone is clubbing baby seals, Americans don't pay much attention to what's happening in Canada. It's as if we live in a house with a set of quiet, orderly neighbors on one side and a bachelor pad with drunken parties, girls in the hot tub and occasional gunshot eruptions on the other. To whom would you pay more attention?
I dare say Americans could correctly name the president of Mexico (Filipe Calderon) over the prime minister of Canada (Stephen Harper) by a margin of 5-to-1. That's too bad. While we have every reason to fear the disorder spilling over from our increasingly lawless neighbor to the south, our well-mannered Canadian neighbors have pulled their act together. We could learn a lot from them.
Look what's not happening in Canada. There is no real estate crisis. There is no banking crisis. There is no unemployment crisis. There is no sovereign debt crisis. Recent reports suggest that consumers are loading up too much debt, but Canada shares that problem with nearly every other country in the industrialized world.
Among the Group of Seven nations, which also include the United States, France, Japan, Germany, the United Kingdom and Italy, Canada's economic activity has come the closest to returning to the pre-recession peak. The country has recovered three-quarters of all jobs it lost. The International Monetary Fund estimates that Canada will be the only country among the G-7 to have achieved a balanced budget by 2015.
Read the full article here.
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What's in store for real estate?
2010 was a good year for Canadian residential real estate, with double digit gains early in the year, then tapering to more modest gains in recent months. So whats in store for 2011? BNN speaks to Don Campbell, president, Real Estate Investment Network
Watch the video here.
2010 was a good year for Canadian residential real estate, with double digit gains early in the year, then tapering to more modest gains in recent months. So whats in store for 2011? BNN speaks to Don Campbell, president, Real Estate Investment Network
Watch the video here.
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Economic optimism in Canada subdued as new year starts
OTTAWA ` Canadians are less sure the economy will improve over the next year than at this time last year, but they are also less fearful of a significant downturn, according to survey results released Thursday.
The poll by Pollara on behalf of the Economic Club of Canada showed that 38 per cent feel the Canadian economy will improve this year, down from 54 per cent who felt this way a year earlier.
About 20 per cent said they expected to economy to worsen in the coming year, up from 14 per cent in the poll done a year before.
"Canadians were feeling overly bullish on economic recovery this time last year," said Michael Marzolini, chairman of Pollara. "But clearly, these lofty expectations in Canada and around the world have not yet been met, and Canadians are now more measured in their feelings about the economy."
Read the full article here.
OTTAWA ` Canadians are less sure the economy will improve over the next year than at this time last year, but they are also less fearful of a significant downturn, according to survey results released Thursday.
The poll by Pollara on behalf of the Economic Club of Canada showed that 38 per cent feel the Canadian economy will improve this year, down from 54 per cent who felt this way a year earlier.
About 20 per cent said they expected to economy to worsen in the coming year, up from 14 per cent in the poll done a year before.
"Canadians were feeling overly bullish on economic recovery this time last year," said Michael Marzolini, chairman of Pollara. "But clearly, these lofty expectations in Canada and around the world have not yet been met, and Canadians are now more measured in their feelings about the economy."
Read the full article here.
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Home prices expected rise further: Royal LePage
OTTAWA ` Home prices will continue a "moderate and steady climb" this year, helped along by an improving economy and low interest rates, according to a report released Thursday.
Real estate services firm Royal LePage said the average price of a home in Canada will rise three per cent to $348,600, even as the number of transactions falls two per cent.
It said that after a "lacklustre" third quarter in 2010, home prices were up between 3.9 and 4.6 per cent, year over year, in the year's fourth quarter. This marked a return to growth more typical of trends since the end of the recession, Royal LePage said.
The report said, similar to last year, sales will be more robust in the first half of the year as homebuyers take advantage of low interest rates that could be on the rise in the near future.
Read the full article here.
OTTAWA ` Home prices will continue a "moderate and steady climb" this year, helped along by an improving economy and low interest rates, according to a report released Thursday.
Real estate services firm Royal LePage said the average price of a home in Canada will rise three per cent to $348,600, even as the number of transactions falls two per cent.
It said that after a "lacklustre" third quarter in 2010, home prices were up between 3.9 and 4.6 per cent, year over year, in the year's fourth quarter. This marked a return to growth more typical of trends since the end of the recession, Royal LePage said.
The report said, similar to last year, sales will be more robust in the first half of the year as homebuyers take advantage of low interest rates that could be on the rise in the near future.
Read the full article here.
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Canadian loonie to remain steady near par with U.S. dollar
TORONTO - The Canadian dollar will remain steady near par with the U.S. dollar this year, little changed from current levels, partly on contradicting forces at home and abroad, according to a Reuters poll on Wednesday.
The global poll showed that 76 per cent of foreign exchange strategists and economists forecast the currency will stay at par or higher over the next 12 months, after it had reached the one-for-one footing with the greenback in the last sessions of 2010.
"We are expecting the Bank of Canada to start raising rates again in May so that will be a net positive for the Canadian dollar, but at the same you're going to have issues likely re-emerge in Europe. Those generally mean risk-off for the market as a whole," said Benjamin Reitzes, an economist at BMO Capital Markets.
"We think those two forces will keep the dollar around parity, at least until mid-year."
Read the full article here.
TORONTO - The Canadian dollar will remain steady near par with the U.S. dollar this year, little changed from current levels, partly on contradicting forces at home and abroad, according to a Reuters poll on Wednesday.
The global poll showed that 76 per cent of foreign exchange strategists and economists forecast the currency will stay at par or higher over the next 12 months, after it had reached the one-for-one footing with the greenback in the last sessions of 2010.
"We are expecting the Bank of Canada to start raising rates again in May so that will be a net positive for the Canadian dollar, but at the same you're going to have issues likely re-emerge in Europe. Those generally mean risk-off for the market as a whole," said Benjamin Reitzes, an economist at BMO Capital Markets.
"We think those two forces will keep the dollar around parity, at least until mid-year."
Read the full article here.
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House prices to see steady climb
A new survey says Canada's real estate market is heading into a stronger-than-expected year that will likely see home prices steadily rise, while overall transactions moderate.
Royal LePage reports that average home prices are expected to rise 3 per cent to $348,600 in 2011, while the number of transactions is predicted to fall 2 per cent.
The survey also found that average house prices rose between 3.9 per cent and 4.6 per cent in the fourth quarter of 2010.
Royal LePage said that price appreciation is expected to continue a moderate and steady climb throughout the year.
Activity in the housing sector was helped by low borrowing costs in the fourth quarter of last year, and the report says that trend will likely continue into the first half of 2011 as homebuyers weigh the possibility of rising mortgage rates later this year.
Read the full article here.
A new survey says Canada's real estate market is heading into a stronger-than-expected year that will likely see home prices steadily rise, while overall transactions moderate.
Royal LePage reports that average home prices are expected to rise 3 per cent to $348,600 in 2011, while the number of transactions is predicted to fall 2 per cent.
The survey also found that average house prices rose between 3.9 per cent and 4.6 per cent in the fourth quarter of 2010.
Royal LePage said that price appreciation is expected to continue a moderate and steady climb throughout the year.
Activity in the housing sector was helped by low borrowing costs in the fourth quarter of last year, and the report says that trend will likely continue into the first half of 2011 as homebuyers weigh the possibility of rising mortgage rates later this year.
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Strengthening economic recovery and low interest rates point to a stronger than anticipated 2011 for housing market
TORONTO, January 6, 2011 ` The average price of a home in Canada increased between 3.9 and 4.6 per cent in the fourth quarter of 2010, compared to the previous year, as markets shrugged off a lackluster third quarter and returned to a post-recession growth profile. Home values are forecast to continue a moderate and steady climb in many of the country`s key housing markets through 2011 with sales activity skewed to the first half of the year, according to the Royal LePage House Price Survey and Market Survey Forecast released today.
The low cost of borrowing stimulated the housing market in 2010, and this trend is predicted to continue in the first half of 2011. The widely held consumer belief that rates will rise in the latter part of 2011 may prompt an increase in buying activity early in the year.
`Trends in the housing market continue to be driven by the lingering after-effects of the recession,` said Phil Soper, president and chief executive of Royal LePage Real Estate Services. `Canadians realize that interest rates are unsustainably low and that homes will become effectively more expensive when mortgage rates return to normal levels. We will likely see more price appreciation early in 2011 as some buyers complete transactions in advance of anticipated higher borrowing costs.`
Soper added, `2011 is expected to unfold much like 2010, when close to 60 per cent of sales volume occurred in the first half of the year in anticipation of interest rate increases that never materialized. However, housing market activity in the first half of 2011 will be modestly closer to the norm, as last year`s phenomenon was exacerbated by mid-year tightening of mortgage accessibility and the introduction of HST in Ontario and British Columbia.`
Read the full article here.
TORONTO, January 6, 2011 ` The average price of a home in Canada increased between 3.9 and 4.6 per cent in the fourth quarter of 2010, compared to the previous year, as markets shrugged off a lackluster third quarter and returned to a post-recession growth profile. Home values are forecast to continue a moderate and steady climb in many of the country`s key housing markets through 2011 with sales activity skewed to the first half of the year, according to the Royal LePage House Price Survey and Market Survey Forecast released today.
The low cost of borrowing stimulated the housing market in 2010, and this trend is predicted to continue in the first half of 2011. The widely held consumer belief that rates will rise in the latter part of 2011 may prompt an increase in buying activity early in the year.
`Trends in the housing market continue to be driven by the lingering after-effects of the recession,` said Phil Soper, president and chief executive of Royal LePage Real Estate Services. `Canadians realize that interest rates are unsustainably low and that homes will become effectively more expensive when mortgage rates return to normal levels. We will likely see more price appreciation early in 2011 as some buyers complete transactions in advance of anticipated higher borrowing costs.`
Soper added, `2011 is expected to unfold much like 2010, when close to 60 per cent of sales volume occurred in the first half of the year in anticipation of interest rate increases that never materialized. However, housing market activity in the first half of 2011 will be modestly closer to the norm, as last year`s phenomenon was exacerbated by mid-year tightening of mortgage accessibility and the introduction of HST in Ontario and British Columbia.`
Read the full article here.