November 2013 Canadian Economic Fundamentals

[Ally]

Foreign ownership of Canadian property: More calls for the mystery numbers




Why does Canada not keep public data on investment ownership in real estate, whether by foreigners or homegrown residents? The question is starting to gain more attention than when some of us in B.C. raised it earlier this year.




With Canadian cities, especially Metro Vancouver, becoming infamous for their unaffordability in regards to real estate, another voice has been added to those urging the federal Conservative government to at least collect data on the influence of investors ` foreign and otherwise ` on the country`s housing market.





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[Ally]

Flaherty's new goal: Not merely balanced budget, but useful surplus for 2015




OTTAWA - After one of the more disappointing years in the current recovery cycle, Finance Minister Jim Flaherty is expected to offer some positive news for a change when he issues the government's fall economic update Tuesday afternoon.




Unlike last year's update which went down like a spoonful of cod-liver oil ` tastes awful, but good for you ` Flaherty has signalled he expects to report a better-than-projected deficit this fiscal year and a bigger surplus in 2015.





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[Ally]

Canada adds 13,200 new jobs in October, jobless rate stays at 6.9%




OTTAWA (Reuters) - Canada added a relatively modest 13,200 jobs in October - all of them full-time - and the unemployment rate stayed at a nearly five-year low of 6.9 percent, Statistics Canada said on Friday.




The job growth almost matched analysts' expectations for 13,500 new positions and follows the 11,900 jobs created in September.





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[Ally]

Which industries are creating jobs? (Hint: Surprisingly few)




Nearly half of the jobs created in Canada since the Great Recession were in just two sectors of the economy, a fact that highlights some economists` fears Canada`s economy is becoming `unbalanced.`




According to a new report from the Conference Board of Canada, health care and construction jobs accounted for 45 per cent of net job growth in Canada since July 2009, which the report pegs as the end of the last recession.





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[Ally]

Housing starts build on momentum, rise in October




OTTAWA ` The pace of housing starts heated up again in October, continuing the momentum that began to build in July.




The Canada Mortgage and Housing Corp. estimates there were 17,033 actual starts in October, which extrapolated over 12 months gives a seasonally adjusted annual rate of 198,282 units, compared with 195,929 in September.





Read the full article here.

 

[Ally]

What 2014 could bring for Canada's real estate sector





The live, work, shop shift to the core is playing out across most Canadian cities and its impact will continue to be felt through a number of real estate sectors in 2014, says a new report.






Retail real estate will remain a `buy` next year, especially in Toronto and Calgary, as retailers look to open more stores in the core and catch up with the growing number of people now living downtown, says the 35th annual study of emerging real estate trends by the Urban Land Institute and PricewaterhouseCoopers.






Read the full article here.

 

[Ally]

Sears Canada selling $315 million in real estate





TORONTO (CP) ` Sears Canada Inc. is selling its 50 per cent interest in eight properties for about $315 million, the national retailer`s latest major real estate transaction.



Montez Income Properties Corp. will buy a 50 per cent stake in a joint venture that Sears has with Westcliff Group, which will continue to own the other 50 per cent stake and manage the properties.



Read the full article here.

 

[Ally]

Immigration boosting housing sector




With every report of continued strength in the remarkably stubborn Canadian housing market (and we have had more such indications this week), the question gets asked: How can Canada`s housing sector possibly keep this up?




National Bank Financial believes it has one compelling answer: Immigration.





Read the full article here.

 

[Ally]

A Joint Venture with CAPP: Canada's lifeblood




Canada`s natural resource wealth is a vital contributor to national, provincial and territorial economies, and to the quality of life enjoyed by Canadians.




Close to 800,000 people work in the sector and an equal number are employed nationwide through related jobs in construction, manufacturing, technology, transportation and services. What`s more, government at all levels benefit from the huge revenues generated from taxes and royalties ` revenues that contribute to the public purse and profit all Canadians through infrastructure projects and social and public services such as roads, hospitals and schools.




The natural resources sector, including forestry, metals, minerals





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[Ally]

Ottawa ready to clamp down on housing market to prevent bubble




OTTAWA - Federal Finance Minister Jim Flaherty says he's prepared to clamp down on mortgage rules once again if Canada's housing market continues to heat up.




The finance minister named consumer debt, which is at near record high levels, and a resurgent housing market as the number one domestic threat to the economy in his fall economic update released Tuesday in Edmonton.





Read the full article here.

 

[Ally]

Emerging trends in real estate in 2014




The stability of Canada`s real estate market continues to attract positive attention from domestic and international investors. These market participants range from sovereign wealth funds to experienced local market investors. While the overall market could easily be described as `healthy,` the current real estate and capital market environment requires that each investment be carefully evaluated on its own merits.





Read the full article here.

 

[Ally]

Canadians increasingly want to live near transit




Being close to good schools, parks and shopping have long been key to home buyers choosing a neighbourhood.




And now access to commuter trains, light rail or subways is quickly moving up the list when people choose a place to live, according to a new report on the Canadian real estate market.




Clogged highways and rush-hour traffic are adding to commuting times and helping to spur a move away from the car-focused suburbs.





Read the full article here.

 

[Ally]

Real estate investors will be more active in 2014





The Canadian real estate market will maintain its strength next year, according to a report by PwC and the Urban Land Institute (ULI).



While the outlook for development of all property types is good, continuing urbanization and reverse migration trends are expected to be an especially important considerations for developers and investors. In particular, live/work/play development offerings along or near mass transit lines will be essential.





Read the full article here.

 

[Ally]

International Energy Agency world outlook underscores opportunities for Canada






OTTAWA ` The Honourable Joe Oliver, Canada`s Minister of Natural Resources, today welcomed the International Energy Agency`s (IEA) World Energy Outlook 2013. The IEA is the leading authority on global energy supply and demand trends. Its 2013 report emphasizes that global demand for oil will continue to grow and examines the changing global energy landscape, highlighting that energy demand is shifting decisively to the emerging economies of China, India and the Middle East.




`Over the next two decades, continued growth in the global demand for oil will be met by increased production of unconventional oil,` said Minister Oliver. `With the world`s third-largest proven oil reserves, Canada is well-positioned to meet this growing demand by supplying new and expanding markets such as China and India.`





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[Ally]

Vancouver and Toronto office construction boom threatens to drain suburban growth




We`ve never seen so much office construction in downtown Vancouver or downtown Toronto




New construction of downtown office buildings in Canada is threatening to leave older towers behind and the suburbs out in the cold, says a new study.





Read the full article here.

 

[Ally]

Canadian home sales drop most in a year as chances of rate hike fade




Canadian existing home sales fell 3.2% in October from the previous month, the biggest drop in more than a year, as the prospect of lower-for-longer interest rates eases pressure on buyers.




Unit home sales fell to 39,235 during the month, down from 40,545 in September, the Canadian Real Estate Association said in a statement Friday on its website. Home prices fell 1.1% during the month to $388,277.





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[Ally]

Latest data show in situ oilsands cleaner than mining




Like everything in the oilsands, dispelling conventional wisdom is tough work.




It's assumed, for example, that despite the environmental advantages in situ oilsands production has over surface mining - as even Alberta Energy acknowledges on its website - the process "generally produces more GHGs per barrel."




Until now, that is - or at least until last year.





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[Ally]

Home sales in Canada dip


OTTAWA -- Canadian home resales dipped last month for the first time since February in what many see as a signal a so-called correction in the housing market remains in place.




The Canadian Real Estate Association reported Friday the number of transactions fell 3.2 per cent in October from September on a seasonally adjusted basis.




That still leaves an 8.3 per cent increase from October 2012, when sales were dipping following a tightening of federal mortgage rules in July of that year.





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[Ally]

OECD calls for the Bank of Canada rate to more than double by the end of 2015




OTTAWA - The Bank of Canada may need to start hiking its trendsetting interest rate within the next year and steadily push it to 2.25 per cent by the end of 2015, according to an international think-tank representing the world's leading economies.




The central bank has kept its policy rate fixed at one per cent since September 2010, leading to one of the most stable and favourable borrowing environments in many decades.





Read the full article here.

 

[Ally]

Reports show Canada housing market worries remain





Four reports released Tuesday offered different takes on Canada`s housing market, but the tone overall was one of worry about the possibility of an abrupt slowdown.





Thanks to interest rates hovering around near-record lows, Canada`s housing market continues to show signs of frothy sales and prices despite concerns from policymakers about high household debt levels.





Read the full article here.