Blog Archive for February 2012

With the surge in new home building in Manitoba, comes an increased demand for new workers, and the industry is searching for skilled tradespeople to continue the housing push, according to a recent report from the Winnipeg Free Press.

The Manitoba housing industry is coming off its most productive 12-month stretch in nearly 25 years in terms of new home construction, with forecasts and projections from the Canada Mortgage and Housing Corporation and other analysts indicating the industry will continue to prosper over the next two years.

"We've had a lot of mega projects, and mega projects demand mega workers," Mike Moore, president of the Manitoba Home Builders Association, told the news source. "So in some ways, it's because of our own success. It's good news (for the economy), but it takes away from our (the homebuilding industry's) labor force." Continue reading »

Despite the recent surge in competition in the Canadian mortgage market over the past month, the wars have subsided, a HSBC Bank Canada chief told The Globe and Mail in a recent report.

Lindsay Gordon, CEO of HSBC Bank Canada, said the price war that took place between banks, which led to two of the nation's banks lowering their mortgage rate offerings to 2.99 percent on four- and five-year fixed rate mortgages with 25- and 30-year amortizations.

“Last year Canadian banks presented solid results, primarily thanks to their strong retail banking businesses and growth in loan portfolios,” said Diane Kazarian, PricewaterhouseCooper’s Canadian financial services leader. “However, 2012 may see slowing growth in consumer credit markets and continued pressure on margins as banks battle for market share.” Continue reading »

Canadian home resale prices fell in December on a month-over-month basis, according to the recently released Teranet-National Bank Composite House Price Index.

The index, which measures price changes for repeat sales of single family homes, showed a 0.2 percent drop overall between November and December, but a 6.8 percent increase compared with the year before.

The index covered major metropolitan markets throughout Canada, with five of the 11 surveyed showing a decline in prices, the Toronto and Vancouver markets reporting a smaller drop of 0.3 percent, and the British Columbia and Victoria regions seeing the sharpest decrease of 0.8 percent. In addition, Halifax experienced the biggest increase of 0.9 percent.

December was the first month since September 2010 in which all 11 surveyed metro markets in Canada showed home prices that were up from the year before, with five markets surpassing the average 6.8 percent increase. Continue reading »

Innovative Composites International, a high-tech manufacturing and engineering company, recently announced a new agreement with ReadLeaf Homes that will allow its presence in the rural and northern Canadian housing market.

ReadLeaf can now distribute ICI prefabricated homes and shelters throughout the northern and rural regions of the country with an emphasis on First Nations, mining operations and other rural communities.

"We strongly believe that our EcoScape modular homes provide the most cost effective and sustainable, quality housing for the northern and rural regions across Canada," said Terry Ball, president and CEO of the ICI. "Superior insulation, speed of assembly, rot and mold resistance and enhanced durability are attributes that are very important for this market. Our EcoScapeTM system offers all that at a very reasonable price point." Continue reading »

Recent data shows a significant difference between the U.S. economic recovery and Canada's. However, some experts say the comparison is somewhat unfair, as the United States has been digging itself out of a much deeper hole over a longer period of time, while Canada is just starting its recovery.

According to the Toronto Star, the United States created 243,000 jobs in January, which was twice the expected rate, and unemployment declined 0.2 percent. In Canada, the economy created almost zero jobs, and the country's unemployed rate increased.

“(The United States') starting point was much deeper," Glen Hodgson, chief economist at the Conference Board of Canada, told the newspaper. "They lost 5 percent of the gross domestic product. We lost about half of that. We’ve also recovered all the jobs we lost. They’ve recovered about a third of the jobs they lost. So they’re playing catch up to where Canada already is." Continue reading »

TC Media, one of Canada's leading media and marketing solutions providers, recently signed an exclusive agreement with Hearst Digital Media and Homes Publishing Group, which allows TC Media to take over exclusive sales representation in the Canadian market for brand-name sites. HomesMag.com is the nation's first and foremost authority on new home buying in the Toronto area.

"We are truly pleased to have become partners with Homes Publishing Group and to enhance our existing partnership with Hearst," said Andrea Fernandes, vice president of 360 Solutions and digital sales – Toronto, TC Media. "Joining with these two partners helps us expand our digital offering in key categories to provide Canadian agencies and marketers with the opportunity to reach premiere audiences." Continue reading »

BMO Financial Group recently released a report advising Canadians on retirement and downsizing and if they should make their move.

With the first wave of Canada's 9 million baby boomers becoming eligible for retirement last year alone, many are having to make the decision on what to do in terms of their finances.

The report found 54 percent of respondents citing financial reasons as why they will relocate after they retire.

"Even if downsizing may be years away, it's important not only to think about all of the factors that can affect your decision, but to maintain an open dialogue with your loved ones," said Dr. Amy D'Aprix, BMO Life Transition Expert. "Being proactive will help you remain in control, rather than having to deal with an unexpected move when you're not prepared." Continue reading »

With Canadian banks set to report their first quarter earnings starting February 28, expectations are muted with results expected to show the state of consumer loan growth, capital markets and strict regulations, according to the Financial Post.

Last year's first quarter earnings from Canadian banks saw an average net interest margin on domestic retail operations of roughly 3.5 percent, but that number is expected to drop to just more than 2.5 percent, John Aiken, analyst at Barclays Capital, told the newspaper.

"Given a prospect of continuing low interest rates and the now full-bore effort to de-leverage both banks and their retail customers that have provided the bulk of recent revenue and earnings growth, revenue advances will in our view be a key leading indicator of future shareholder value potential," Brad Smith, analyst at Stonecap Securities told the Post. Continue reading »

With recent published reports indicating that the housing bubble in Canada may be close to popping, Larry MacDonald, a former economist, wrote a piece for Canadian Business where he urged analysts and consumers to consider other factors.

Comparing the Canadian housing industry to the U.S. housing industry, which experienced a bubble burst in 2008, MacDonald writes the U.S. market imploded when the U.S. Federal Reserve was purposely trying to slow down the economy by raising its rates until they surpassed long-term rates.

MacDonald added the tightening in monetary policy led to the end of U.S. housing craze, but the situation has not gotten that dire in Canada yet and the Bank of Canada, along with the Canadian Fed, still want to create growth instead of dampen it. Continue reading »

A recent report from TransUnion shows the total debt in Canada increased to close out 2011, with holiday shopping likely responsible for the rise in credit spending.

The fourth quarter of 2011 in Canada saw total debt, excluding mortgage, rise to $25,960. The nation is still experiencing decelerating annual growth below 1 percent for the first time since TransUnion started analyzing credit trends eight years ago.

"The fourth quarter increase in average consumer debt is in line with seasonal patterns as consumer debt levels generally rise during the holiday shopping season," said Thomas Higgins, TransUnion's vice president of analytics and decision services. "The continued deceleration in the annual growth of total debt is the bigger story." Continue reading »