May 2013 Canadian Economic Fundamentals

[Ally]

Home sales slip in some cities, but prices still rising





OTTAWA ` Home sales in April slipped in several Canadian markets ` though not Ottawa ` and one analyst says the market appears to be slowing gradually rather than heading for a crash.



The Canadian Real Estate Association said Wednesday that sales dropped 3.1. in April across the country, compared with a year earlier.





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[Ally]

BMO says Canadian housing market calm, cool, and collected





According to BMO Chief Economist Doug Porter, the latest data from the Canadian Real Estate Association shows that evidence continues to mount that the Canadian housing market will be able to pull off the fabled soft landing.



Existing home sales edged up 0.6 per cent in April, trimming the annual decline to 3.1 per cent year over year. Mr. Porter noted that sales have risen on a seasonally adjusted basis in 3 of the past 4 months, and are essentially unchanged since last August - the first full month of the new mortgage insurance rules.





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[Ally]

Canada's housing meltdown? Must have missed that




While it`s too early for victory laps, evidence is building that the Canadian housing market has pulled off the `fabled soft landing`, says Douglas Porter, chief economist for BMO Capital Markets.









Sales of existing homes climbed 0.6% in April from March, which trimmed the year-over-year decline to 3.1%, the Canadian Real Estate Association said on Wednesday.







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[Ally]

Harper takes oilsands crusade to New York




OTTAWA - When Stephen Harper takes the stage at a leading U.S. think-tank on Thursday to talk about Canada's energy prospects, his pitch will more than likely mention that Canada is halfway towards meeting its greenhouse gas emissions target.




The question on many American minds is: what will Canada do to make up the other half?




As the Obama administration mulls whether to let TransCanada Corp. build the Keystone XL pipeline to connect the Alberta oilsands to the Gulf Coast, the federal Conservative government has ramped up the rhetoric around the measures it has taken to ensure pipeline safety, cut emissions and monitor oilsands pollution.





Read the full article here.

 

[Ally]

Central bank moves working, but return to normal could be bumpy




Unconventional monetary policy is working, economists at the Bank of Canada and International Monetary Fund say, but both sets of researchers warn in separate reports that a return to normalcy could be bumpy.




While the papers reflect the views of the authors, and not necessarily those of their respective institutions, the matching conclusions nonetheless promise to stiffen the resolve of central bankers to press ahead with their unprecedented adventures in policy making.





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[Ally]

Canadian recreational property market buoyed by low interest rates




CALGARY ` Continued low interest rates are having a positive impact on the Canadian recreational real estate market, says a survey by Royal LePage.




The survey, which polled Canadians across the country who either currently own or intend to purchase a recreational property within the next five years, found that 82 per cent say interest rates will influence their decision to purchase a recreational property ` and 58 per cent feel added urgency to buy a recreational property while interest rates are low.





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[Ally]

Jobs challenge: Canadians don't want to move out of province




In 1996, Stephen Poloz, who next month will become the next governor of the Bank of Canada, contributed to a paper (pdf) that showed shifts in commodity prices can cause significant variation in economic strength among Canada`s provinces.




Makes sense: A surge in crude prices is great for Alberta, a net-exporter of oil, and not so great for Ontario, a consumer with none of its own supply.





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[Ally]

Natural gas jumps as U.S. approves LNG export project




WASHINGTON ` The Obama administration opened the door to a new era of U.S. energy exports on Friday, approving the first natural gas project since the start of a heated debate over how best to benefit from the shale energy boom.




The Energy Department`s approval of natural gas exports to all countries from Freeport LNG`s Quintana Island, Texas, terminal ends nearly a two-year pause in its review of export applications as the administration addressed concerns that sending unlimited amounts of U.S. gas abroad could harm U.S. manufacturers.





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[Ally]

Home ownership a priority in Canada




Canadians have a love affair with their homes, stretching their finances to buy them, sacrificing other things to have a house or condo and remaining deeply in debt even when the numbers suggest they would be better off renting.





North American stock markets continue to reach new highs every day but don`t tell anybody in organized real estate about it.





It`s not something the industry wants to hear.



Read the full article here.

 

[Ally]

Canada's banks expected to dig deeper for good news




The housing market is slowing. Consumer debt levels are sky high. But don`t count Canada`s banks out yet.




For the past few quarters, the banks faced the same headwinds, but every three months analysts and investors were pleasantly surprised with their results.





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[Ally]

Flaherty no longer worried about the Canadian housing market




The Canadian real estate market is currently undergoing a slow phase. This can easily be observed from statistics revealed by the research consultancy, Urbanation Inc. According to their research, the condominium sales in Toronto dropped a whopping 55% in the first quarter of 2013. However, Jim Flaherty, the Finance Minister of Canada is not worried about this slowdown. According to mortgage expert, Marcus Arkan, this is good news for the key participants of the real estate market.




Mr. Flaherty recently said in a telephone interview that he was not concerned or worried about the slowing down of the Canadian real estate market. In addition to that, he termed the consequences of the slowdown as `healthy developments`. This was quite a surprise for key players of the Canadian housing market.



Read the full article here.

 

[Ally]

Canadian economy can't keep relying on consumer borrowing: Mark Carney



Listening today to both Mark Carney and Julie Dickson, you get a sense of both the ecstasy and the agony of ultra-low interest rates.





Both the Bank of Canada Governor and the head of the country`s bank regulator addressed the issue today, each from different perspectives and each with a warning.





Read the full article here.

 

[Ally]

Transition to higher interest rates could be 'very painful'





Canada`s banking watchdog says the transition to higher interest rates ` when it comes ` could be `very painful.`



Like those in most developed countries, interest rates have been at emergency lows for years. And the Bank of Canada is not expected to raise its benchmark rate from its current level of 1 per cent until late next year or early 2015.





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[Ally]

Commercial real estate investors fear for the future






Canadian commercial real estate has been a great place to make money over the past five years ` but industry players are increasingly nervous and worried about the future, according to a report released today by the Real Property Association (REALpac) and FPL Advisory Group.










REALpac`s second-quarter index surveyed commercial real-estate executives, and found that pessimism was as high as it had been since 2009, in the midst of the global financial crisis.





Read the full article here.

 

[Ally]

Nearly half of homeowners eager to buy property




Undeterred by record-high housing prices and bolstered by low borrowing costs, nearly half of Canadian homeowners plan to buy a property in the next five years, although intentions vary sharply from city to city, a poll released Wednesday has found.




According to a Bank of Montreal survey, 45 percent of Canadian homeowners surveyed this spring are looking to buy a place in the next five years, a level that did not change from the fall of 2012. The percentage of homeowners planning to buy in the next year also remained stable, edging 1 percent higher to 7 percent.





Read the full article here.

 

[Ally]

Yellowknife rental units still pricey, despite higher vacancy




In Yellowknife, new condominiums and homes are popping up like mushrooms.




The Canadian Mortgage and Housing Corporation said since last year, more than 100 new homes and condos were added to the market, which is plumping up what's available for buyers.





Read the full article here.

 

[Ally]

Oil pipelines to drive Canadian economy like 1800s railway track




Canada, which depended on railroads to build the nation in the 1880s, is counting on pipelines to drive future economic growth, Enbridge Inc. Chief Executive Officer Al Monaco said.




`Pipelines are very similar to railroads,` Monaco said at the Bloomberg Canada Economic Summit in Toronto yesterday. `When you really get down to it, Canada is an export-driven resource economy. This is our foundation.`





Read the full article here.

 

[Ally]

CAAMP annual spring report





TORONTO, May 22, 2013 /CNW/ - The Canadian Association of Mortgage Professionals (CAAMP) spring survey Change in the Canadian Mortgage Market, released today, warns of a weakening housing market with economic implications. On the one hand, the survey shows that the almost six million Canadians who own homes with mortgages are comfortable with their debt. On the other hand, data, collected by CAAMP and analyzed by Chief Economist Will Dunning indicates that government restrictions on mortgage borrowing have set the stage for a steady decline in new home building which will trigger job losses and a drop in housing related economic activity by 2015.







Read the full article here.

 

[Ally]

Rogers' Zoocasa real estate brokerage reduces agent's commissions




Zoocasa, an online service for home seekers, is aiming to win market share with rebates to buyers and sellers that will refund roughly 15 per cent of the commission they pay their real estate agents.




The web service`s new strategy, which includes becoming a licensed real estate brokerage so that it can tap into the latest housing data from real estate boards across the country, adds to the pressure on real estate commissions industry-wide.





Read the full article here.

 

[Ally]

Slowdown? Nearly half Canadian homeowners eager to buy property




Undeterred by record-high housing prices and bolstered by low borrowing costs, nearly half of Canadian home owners plan to buy a property in the next five years, although intentions vary sharply from city to city, a poll released Wednesday has found.




According to a Bank of Montreal survey, 45 per cent of Canadian homeowners surveyed this spring are looking to buy a place in the next five years, a level that did not change from the fall of 2012. The percentage of homeowners planning to buy in the next year also remained stable, edging 1 per cent higher to 7 per cent.





Read the full article here.