June 2015 Canadian Economic Fundamentals

[Ally]

Despite all of the doom and gloom headlines, May 2015 turned out to be best month for resale housing market in Canada since 2010

The average sale price of a Canadian home has eclipsed $450,000 for the first time, the Canadian Real Estate Association says.

The realtor group said Monday that the average resale price increased by 8.1 per cent in the 12 months up to May, to $450,886.

Read the full article here.

 

[Ally]

As discussed at Ontario REIN we are getting distracted from what really matters by Senate nonsense . Even John Oliver knows it! HBO's John Oliver mocks Canada's Senate scandal. "You have forgotten what a scandal is"

Watch the video here.

 

[Ally]

Canadian home prices will rise this year as oil-producing markets rebound, predicts RBC

In their latest economic outlook, RBC projects Canada’s GDP will grow by 1.8 per cent this year and 2.6 per cent in 2016. The bank says the outlook reflects “a positive read on expectations for consumption and housing.”

Housing? But what about those markets that have been hit hard by falling oil prices? RBC says a recent rise in sales suggests “oil-producing provinces may have hit their lows early in the year.” However, the bank cautions that given the uncertainty surrounding the near-term outlook for the price for oil, “another round of selling cannot be ruled out.”

Read the full article here.

 

[Ally]

CMHC stats show higher vacancies and higher rents in the country's spring market

The rental apartment vacancy rate across Saskatchewan was 5.6 per cent in April, up 3.3 per cent from one year earlier, Canada Mortgage and Housing Corp. reported Monday.

Despite that, rents keep going up.

Read the full article here.

 

[Ally]

The five priciest and cheapest rental markets in Canada

If you’re looking for a steal on rent, Quebec appears to be a bargain hunters’ dream. La belle province is home to four of the five cheapest cities in which to rent, according to a report released Monday by the Canada Mortgage and Housing Corp. The cheapest rates were found in Trois-Rivières, Que., where the average monthly rent for a two-bedroom apartment was $571 in April, well below the national average of $949. At the other end of the spectrum, Vancouver was the most expensive city with an average monthly rent of $1,345 for a two-bedroom unit. (The CMHC report covers 35 “major centres,” which are largely based on Statistics Canada’s Census Metropolitan Areas.)

Read the full article here.

 

[Ally]

What president Obama doesn't want you to know about Canada

With President Barack Obama claiming the government builds success, not individuals, Mitt Romney should look north to a story Obama would rather Americans didn’t notice. Canada is outperforming the U.S. on every economic front and they’re doing it with policies Republicans say they’d like to implement.

For the inside scoop I interviewed Tony Clement, Canada’s President of the Treasury Board (the COO for the Government of Canada who is responsible for managing spending among other duties) and a Member of Parliament with the Conservative Party of Canada.

Read the full article here.

 

[Ally]

In Canada we have now the 5 “Fs” the world will be clamouring for in the future. We MUST add “fresh Water” to our previous 4Fs of Food, Fuel, Fertilizer & Forestry. Let’s remember the importance of all of these

The world’s largest underground aquifers – a source of fresh water for hundreds of millions of people — are being depleted at alarming rates, according to new NASA satellite data that provides the most detailed picture yet of vital water reserves hidden under the Earth’s surface.

Twenty-one of the world’s 37 largest aquifers — in locations from India and China to the United States and France — have passed their sustainability tipping points, meaning more water was removed than replaced during the decade-long study period, researchers announced Tuesday. Thirteen aquifers declined at rates that put them into the most troubled category. The researchers said this indicated a long-term problem that’s likely to worsen as reliance on aquifers grows.

Read the full article here.

 

[Ally]

CDN cities caught between crumbling infrastructure & growing calls for transit. Demographic change demands change

As a decision looms on part of Toronto’s aging Gardiner Expressway, cities across the country are facing their own difficult choices about building for the future, and what to do with infrastructure nearing the end of its lifespan.

A huge infrastructure bill is bearing down on Canada’s cities, where most people live and most of the country’s GDP is generated. And as cities grapple with the decay of highways and bridges built in the exuberant post-war era, a time when the car was king, there is increasing pressure to direct money to transit instead.

Read the full article here.

 

[Ally]

Tips on avoiding tenant nightmares

It’s a nightmare shared by every rental property owner - occupants stop paying rent, trash the home and refuse to leave. Left with no choice, the proprietor is forced to go to court to obtain an eviction order. On top of that, there's the cleaning of the mess of what was once a pristine property. It may just be a bad dream, but such a scenario can actually occur. The good news is, it rarely does. Here are some safeguards a landlord can employ to avoid the dreaded tenants from hell.


Rental Application – If you cannot put your hands on a detailed rental application form, you can simply draft your own. See to it that other than having the personal information section filled in, applicants should also indicate current and past employers, previous addresses, rental and ownership history, and landlord reference with contact information. Ensure that the entire document is answered, of which includes a signed consent to allow a credit check. Omitted particulars send up a big red flag. Don’t ignore this, or be fooled just because they seem nice - always verify. The more data you gather, the more likely you are to discover hidden concerns, if any, that may result in a troubled tenancy.

Read the full article here.

 

[Ally]

Canadian housing more affordable so far in 2015 — except Toronto and Vancouver

A report by RBC Economics says housing affordability continued to decline in Toronto and Vancouver, while conditions for homebuyers improved in Alberta during the first quarter of the year as lower oil prices caused the real estate market to soften.

RBC says mortgage rate cuts improved the affordability of homes in many Canadian housing markets where prices didn't accelerate too rapidly.

Read the full article here.

 

[Ally]

Another political head shaker : Mulcair gets current corporate tax rate wrong while explaining his promise to raise it. Proving it is not a fiscal move it is a political posturing move

Thomas Mulcair’s grasp of the economy came under attack from Prime Minister Stephen Harper Wednesday after the NDP Leader stumbled in an interview, failing to accurately recall the current corporate tax rate that his party plans to hike.

In a loud and heated Question Period that will likely be the last House of Commons faceoff between party leaders before the election, both Mr. Mulcair and Mr. Harper went back and forth on many topics for much longer than they normally would.

Read the full article here.

 

[Ally]

Why Canada might have the goods to become a super power

I just finished reading Adam Tooze’s “The Deluge,” a history of how U.S. economic power changed the course of history during the world wars. It’s almost impossible for people today to realize what a big shift this was — to much of the world’s population, the U.S. has always been the Big Country, the driver of markets, innovation and geopolitical stability.

Right now, U.S. hegemony is waning. With only a quarter the population of China, there is essentially no chance that the U.S. can continue to reign supreme in the economic sphere unless China suffers a stunning collapse. But in the longer run, what shifts can we expect in the balance of economic power? Expect the U.S. to make a comeback, since its openness to immigration allows the country’s population to keep growing even after fertility levels out. India’s huge population, of course, will make it a great economic power as well.

Read the full article here.

 

[Ally]

The average wealth of Canadian families climbed 73 per cent in real terms between 1999 and 2012, Statistics Canada said in a report this week. Every income class showed gains.

Yet some media outlets spun this as negative. In other words, the now-familiar portrait of Canadians as reckless borrowers and spenders is wrong. We are still a prudent people. Research even maintains that some people save too much for retirement.

Read the full article here.

 

[Ally]

Alberta continues to lead Canada in population growth

The Alberta Treasury Board and Finance released the Quarterly Population Report for Jan.- March 31, 2015 on June 17 and the numbers show Alberta leading all other provinces for population growth.

Since April 1 of last year, Alberta’s population has grown 2.17 per cent, from 4,086,639 residents estimated April 1, 2014 to 4,175,409 estimated a year later. Canada’s growth rate for the same period was 0.94 per cent.

Read the full article here.

 

[Ally]

With the rapidly changing atmosphere in the Canadian real estate market and the underlying economics (such as a new NDP Government in Alberta, A federal election around the corner, the Camaro leaving Oshawa, Billions being spent on transit infrastructure across the country a Strategic Investor quickly learns how to read the signals and adjust accordingly. Here’s how one very successful investor has done this:

Stop right now, you may be a ‘flat-earth thinker’ and not even know it.

In times like these in mid 2015, new NDP Government in Alberta, lower oil prices across the world, a Federal Election around the corner – change seems to be a real constant. However, many investors don’t adapt their thinking or their strategies as markets and trends change which leaves them wondering “Why is life more of a struggle today than it used to be?”

Read the full article here.

 

[Ally]

Imagine the outcry from people across this great land of ours if any other industry was at the risk of losing $100Billion of investment, jobs and economic stimulus. There would be giant outcries for immediate government intervention from unions, local politicians, media et al (just like we saw when automotive was in trouble). But it seems like maybe some people are afraid of coming out in favour of assisting the Oil & Gas industry in case they too are attacked. Hmmm. Guess it really isn’t a level playing field. (PS, wait a sec, don’t automobiles built in Canada run on petroleum… hmmm)

Western Canadian oil producers are at risk of losing $100 billion in the next 15 years if no new pipelines are constructed in North America, according to energy research firm Wood Mackenzie.

Canadian oil production continues to rise and pipeline capacity remains constricted, pushing 200,000 barrels of oil a day onto the railways.

Read the full article here.

 

[Ally]

You mean there are other markets that performed well last month that aren't named Vancouver and Toronto?

Hit mute on the noise created by bidding wars in Toronto and Vancouver and the picture is more subdued, with the national average up just 2.4 per cent year-on-year in May, to $344,988 (compared to the skewed average of $450,886 when sales data from those two cities are priced in).

The oil shock has knocked back several markets throughout the Prairies by a few steps, experts say. “But many markets outside those hard-hit by the slide in oil prices are in fine or improving shape,” Robert Kavcic, a housing economist at Bank of Montreal, said.

Read the full article here.

 

[Ally]

Recreational property overview by REMAX

National In a recent poll conducted by RE/MAX, almost 68 per cent of Canadians were found to prefer to spend a long weekend at the cottage or cabin over a big city getaway. The low Canadian dollar is having a positive effect on local recreational property markets as Canadians are choosing to stay in Canada where their dollar will go further. The recreational property market buying season has had a strong start and is expected to remain active… Read More

Read More

Read the full article here.

 

[Ally]

More facts destroying the "Pain of the middle class" and the strength of the 1%ers. With the political campaigning heating up, it seems that some are using US based facts to scare us into a false sense of scarcity. Check out the reality in these actual numbers from OECD. YES, the US has a major problem in middle class AND the US has too much wealth in the top 1%ers, however Canada is NOT in that same position. Pay attention to facts not political rhetoric or presuppositioned headline stories… they have an agenda you know.

What's Wrong with Canada's 1%?

Anyone even slightly interested in how the world works believes more data is always better. So the fact that the OECD has just announced it’s tracking wealth in its member countries is a good thing. On the other hand, anyone even slightly acquainted with how the world actually does work understands that once governments have data on a thing they’ll sooner or later start regulating or taxing it. So maybe more data isn’t such a good idea.

That’s especially true when there are problems with the data. The OECD itself, in the backgrounder introducing the new data series, emphasizes that “despite efforts to ensure common treatments and classifications across countries, the measures [of wealth it’s publishing]…are affected by differences that limit their comparability.” In particular, countries provide data for different years and their data on the very wealthy are of varying quality (with the U.S. data being the most complete). Which means we should be very careful comparing data across countries.

Read the full article here.

 

[Ally]

"Comparing Canada to the pre-crisis U.S. market is not only wrong but also irresponsible" CIBC economist lashes out

In a report co-authored with senior economist Andrew Grantham, the say they want no part of the cross-border comparison.

“We purposely did not compare the current situation in Canada to the U.S. market in 2006. That would be setting the bar too low. Comparing Canada to the pre-crisis U.S. market is not only wrong but also irresponsible. And looking at Canada in absolute terms reveals a multidimensional market and differing directions at the same time,” they write, adding it is still possible for the domestic housing market to overshoot.

Read the full article here.