January 2014 Canadian Economic Fundamentals

[Ally]

Tax tips for investors: Clearing up real estate confusion





Real estate has been a hot investment area in Canada for quite some time now due to favorable economic conditions, immigration, and historically low interest rates. Canadians who have taken advantage of these conditions are sometimes confused about the measures they can take to reduce their tax burden.





Read the full article here.

 

[Ally]

What soft landing? Bullish realtors see no slowdown at all for a 'strong' housing market





TORONTO ` The latest Royal LePage housing survey shows average price of a home in Canada increased between 1.2% and 3.8% in the fourth quarter of 2013.





It says the average cost of a standard two-storey home rose 3.6% year-over-year to $418,282, while detached bungalows went up 3.8% to $380,710.





Read the full article here.

 

[Ally]

The New Year heralds in a seller's market in Canada's largest cities


TORONTO - According to the Royal LePage House Price Survey and Market Survey Forecast released today, the average price of a home in Canada increased between 1.2 per cent and 3.8 per cent in the fourth quarter of 2013.





The survey showed year-over-year average price increases in the fourth quarter of 2013 of 3.6 per cent to $418,282 for standard two-storey homes and 3.8 per cent to $380,710 for detached bungalows, while the average price of a standard condominium rose 1.2 per cent to $246,530. Prices are expected to maintain healthy momentum into 2014, with Royal LePage projecting a 3.7 per cent increase nationally from 2013 and a shift to a seller's market in the first portion of the year.





Read the full article here.

 

[Ally]

Sellers to benefit in strong spring housing market


Real estate agency Royal LePage is expecting Canada`s housing market to shift in favour of sellers in the first half of this year, and is forecasting a strong spring.





The agency, which represents more than 15,000 Canadian real estate agents and is part of Brookfield Real Estate Services Inc., is also predicting that house prices will maintain their momentum.





Read the full article here.

 

[Ally]

Think house prices are unaffordable now? It gets worse





How Canada`s housing market will look in 2024: If you`re wealthy, it`s healthy.








If house prices rise from current levels by an average annual rate of 2.5 per cent over the next 10 years, the average Canadian home will cost half a million dollars. By my rough estimate, that would be a realistic purchase only for families with pretax income of at least $125,000 or so. Just for context, the most recent Statistics Canada numbers put the median total family income at $72,240 in 2011.





Read the full article here.

 

[Ally]

Is the Bank of Canada's 2% inflation rate target too low?





For the past four decades, fighting inflation has been a top policy priority, notably for countries with strong and independent central banks, such as Canada. However, since the 2008 financial crisis, the game has changed. Fear of deflation (a falling aggregate price level) has become the new immediate focus of monetary policy.





Read the full article here.

 

[Ally]

Long term rates may rise soon, Stephen Poloz says





Bank of Canada governor Stephen Poloz says he expects long-term interest rates to rise this summer as the U.S. Federal Reserve continues tapering, but he believes that would be a positive development.





Poloz, who was named Canada`s top central banker in May, said he believes that the U.S. Fed will continue to taper its bond-buying program throughout the year and that will create market pressure on bond yields.





Read the full article here.

 

[Ally]

Bank of Canada's Outlook survey to offer clues on inflation





They don`t promise the same impact as last week`s economic indicators ` notably the Canadian trade and jobs reports that took a toll on the dollar ` but this week`s reports still offer plenty to chew on.








The Bank of Canada will get the week going with the winter edition of its business outlook survey Monday.





Read the full article here.

 

[Ally]

`There was no relief`: Quebec, B.C. and Ontario`s lost year in the Canadian job market





A dire year for the job markets in Canada`s three largest provinces was capped by an ugly December where the country lost 45,900 positions.








December`s job losses, mainly in full-time work, was far below consensus forecasts of roughly 14,600 jobs added and drove up Canada`s unemployment rate by 0.3% to 7.2%., according to figures released





Read the full article here.

 

[Ally]

Housing prices rise in 4th quarter, demand continues for luxury homes





House prices in Canada rose in the last quarter of 2013, according to the latest survey by Royal LePage, which found that the average price of a home in Canada increased between 1.2 per cent and 3.8 per cent in the fourth quarter.








Royal LePage said the average cost of a standard two-storey home rose 3.6 per cent year over year to $418,282, while detached bungalows went up 3.8 per cent to $380,710.





Read the full article here.

 

[Ally]

Ottawa condo prices down in Q4 as signs of market slowdown emerge





The drop in average condo prices ` which fell to $260,500 ` was largely the result of the influx of new condominium offerings coming onto the market, the report`s authors said.








"We have a small supply overflow in the Ottawa condo market with an approximate 20 per cent increase in inventory this year, but there is sufficient demand for these new units,` said John Rogan, a broker/manager with Royal LePage, in a statement.





Read the full article here.

 

[Ally]

Skills shortage causing pre-budget anxiety for Canadian businesses





OTTAWA`Businesses hungry for skilled Canadian workers say they will be intently watching the upcoming federal budget, nervous that the Conservative government will water down its Canada Job Grant amid provincial and territorial opposition.





While some dispute the government`s insistence that the controversial program is needed to address a serious skills shortage in Canada, those on the front lines beg to differ`and they`re fully supportive of the government`s original proposals to combat the problem.





Read the full article here.

 

[Ally]

December's job numbers look bad, but not everywhere





Ugly.





Few other words are needed to describe the latest job figures for Canada as the country shed almost 46,000 jobs in December. The unemployment rate now stands at 7.2%, up 0.2 percentage points over November.





Read the full article here.

 

[Ally]

Land survey trumps all documents in a purchase





True or false? A land survey is unnecessary if the house purchaser buys title insurance.






Answer: false.







A court decision released last month by small claims court in Welland, Ont. illustrates the commonly held but incorrect belief that title insurance replaces the need for a land survey.





Read the full article here.

 

[Ally]

Why a lower loonie is (mostly) good for Canada





Stephen Poloz doesn`t like to talk about the dollar.








And yet since he was tapped as Bank of Canada Governor, the Canadian currency has done nothing but fall ` to less than 92 cents (U.S.) from near parity last May. The dollar hasn`t been this low in four years, plunging nearly 3 cents this week alone.





Read the full article here.

 

[Ally]

Business outlook points to optimism on U.S. rebound





Canadian businesses are pinning their hopes on a stronger U.S. economy to boost sales, hiring and investment this year.






The Bank of Canada`s quarterly business outlook survey, released Monday, points to `some positive signs` that the economy will improve over the next 12 months.





Optimism about the future is based almost entirely on what`s happening outside Canada, most notably in the U.S.





Read the full article here.

 

[Ally]

Jobs data casts cloud over Canadian consumer confidence





OTTAWA An "ugly" end to the year for Canada's job market is threatening to undermine consumer confidence that's grown from the first quarter of 2013.








Sentiment rose to 59.2 for the week ended Jan. 10 from 58.8 a week before, according to the Bloomberg Nanos Canadian Confidence Index, compared with the 2013 low of 50.2 at the end of March, a month when employment dropped sharply.





Read the full article here.

 

[Ally]

The national unemployment rate was 7.2% in December





The national unemployment rate was 7.2% in December, says Statistics Canada.








The agency also released seasonally adjusted, three-month average unemployment rates for major cities across the country.





Read the full article here.

 

[Ally]

Canadian home prices edge higher in December





TORONTO, Jan 14 (Reuters) - Canadian home resale prices edged up in December and returned the Teranet-National Bank Composite House Price Index to a record high after a decline the month before.








The index, which measures price changes for repeat sales of single-family homes, showed on Tuesday that national prices rose 0.1 percent last month from November. In November, they fell 0.1 percent from October.





Read the full article here.

 

[Ally]

Canadian house prices buoyed in 2013 by rebound of Toronto, Vancouver markets





The unexpectedly strong rebound of both Toronto`s and Vancouver`s housing markets in 2013 helped push up overall Canadian house prices by about 3.8 per cent, according to Teranet-National Bank.








That`s more than double what had been expected after a slump in sales that translated into a significant drop in prices in markets like Vancouver by the end of 2012.






Read the full article here.