Statistics Canada reports on the gross domestic product data for the fourth quarter, and December GDP by industry. Economists expect an annualized 3.5-per-cent drop in quarterly GDP, and a drop of 0.6 per cent in December.
The U.S. Department of Commerce reports on personal income and spending for January. Economists forecast a drop in income of 0.2 per cent, while personal spending is expected to increase by 0.4 per cent.
The U.S. Commerce Department reports on construction spending for January. A drop of 1.5 per cent is expected.
HSBC Holdings PLC releases fourth-quarter results.
Saturday, February 28, 2009
Canadian banks are the envy of the world
Canadian bank shareholders are a churlish lot. One might have expected some gratitude for banks' positive first-quarter earnings reports at a time when many of the world's financial institutions are teetering on the brink of collapse.
Instead, management and boards of directors were raked over the coals this week as shareholders demanded, and appear to have won, a say in executive compensation. The usual cast of gadflies and activists that frequently heckles annual meetings -- and whose role is normally limited to delaying proceedings by demanding secret ballot votes on everything from reading of the minutes to appointing auditors -- were supported in their "say on pay" efforts by institutional investors, including Doug Pearce, chairman of the B.C. Investment Management Corp., which invests about $85 billion of provincial public sector pension funds.
Instead, management and boards of directors were raked over the coals this week as shareholders demanded, and appear to have won, a say in executive compensation. The usual cast of gadflies and activists that frequently heckles annual meetings -- and whose role is normally limited to delaying proceedings by demanding secret ballot votes on everything from reading of the minutes to appointing auditors -- were supported in their "say on pay" efforts by institutional investors, including Doug Pearce, chairman of the B.C. Investment Management Corp., which invests about $85 billion of provincial public sector pension funds.
Commercial real estate market rough, but not as bad as the 1990s
The commercial real estate market is in rougher shape than it was a year ago, but this is nothing compared to the early 1990s, according to CB Richard Ellis Ltd.
The real estate company's annual market outlook was heavy on comparisons to the crash that occurred last decade.
"Whatever this is folks, it is not the early '90s," John O'Bryan, vice-chairman of CB Richard
Ellis, told an audience of 1,300 real estate professionals. "Not only was the development industry operating at warp speed, but we were literally heading where no man had been before."
The real estate company's annual market outlook was heavy on comparisons to the crash that occurred last decade.
"Whatever this is folks, it is not the early '90s," John O'Bryan, vice-chairman of CB Richard
Ellis, told an audience of 1,300 real estate professionals. "Not only was the development industry operating at warp speed, but we were literally heading where no man had been before."
Friday, February 27, 2009
RBC Bank losses hit bottom line at Royal Bank of Canada
Declining real-estate markets in RBC Bank's Southern footprint drove down asset quality at the Raleigh-based lender during 2008.
Financials released by the Federal Deposit Insurance Corp. on Thursday reveal that RBC Bank, the U.S. banking subsidiary of Royal Bank of Canada (NYSE: RY), saw its charge-offs for bad loans nearly quadruple, from $42 million on Dec. 31, 2007, to $167 million on Dec. 31, 2008.
RBC Bank also was hit by a 47 percent jump. to $671 million, in the number of loans on which borrowers were no longer making principal and interest payments. Of that $671 million, $609 million represented loans secured by real estate, up from $429 million a year earlier.
Financials released by the Federal Deposit Insurance Corp. on Thursday reveal that RBC Bank, the U.S. banking subsidiary of Royal Bank of Canada (NYSE: RY), saw its charge-offs for bad loans nearly quadruple, from $42 million on Dec. 31, 2007, to $167 million on Dec. 31, 2008.
RBC Bank also was hit by a 47 percent jump. to $671 million, in the number of loans on which borrowers were no longer making principal and interest payments. Of that $671 million, $609 million represented loans secured by real estate, up from $429 million a year earlier.
First-time buyers could lead rebound in Canada's real estate market
TORONTO — First-time home buyers could lead a rebound in Canada's real estate market, thanks to lower prices and shifting demographics.
Phil Soper of Brookfield Real Estate Services says a combination of factors are attracting first-time buyers back to the market after they checked out in large numbers at the end of 2008.
National average home prices were down 11 per cent in January compared to a year earlier.
Soper says this, along with historically low mortgage rates and a buyers' market, are working to attract first-time buyers.
And Scotiabank senior economist Adrienne Warren says baby boomers' children will soon begin to enter the real estate market in droves, further boosting housing sales.
Phil Soper of Brookfield Real Estate Services says a combination of factors are attracting first-time buyers back to the market after they checked out in large numbers at the end of 2008.
National average home prices were down 11 per cent in January compared to a year earlier.
Soper says this, along with historically low mortgage rates and a buyers' market, are working to attract first-time buyers.
And Scotiabank senior economist Adrienne Warren says baby boomers' children will soon begin to enter the real estate market in droves, further boosting housing sales.
Thursday, February 26, 2009
Greater Montreal Real Estate Board: Despite a Drop in Sales, Prices Continue to Climb
MLS® real estate sales in the Montreal Metropolitan Area declined by 37 per cent in January 2009 compared to the same month last year while, at the same time, median prices of single-family homes increased by 3 per cent, reported the Greater Montreal Real Estate Board.
"It's obvious that the sales decline is mostly due to a drop in consumer confidence," said Michel Beausejour, FCA, Chief Executive Officer of the GMREB. "It's not surprising to see this decline, even though the real estate market has been quite solid for the last 30 years or so, which is as far back as our statistics go.
"For example, you just have to look at prices in Montreal, which continue to increase slowly but surely at the current time. This is contrary to what's happening in other major cities like Toronto, Vancouver and Calgary, where sales as well as prices have dropped," he added.
"It's obvious that the sales decline is mostly due to a drop in consumer confidence," said Michel Beausejour, FCA, Chief Executive Officer of the GMREB. "It's not surprising to see this decline, even though the real estate market has been quite solid for the last 30 years or so, which is as far back as our statistics go.
"For example, you just have to look at prices in Montreal, which continue to increase slowly but surely at the current time. This is contrary to what's happening in other major cities like Toronto, Vancouver and Calgary, where sales as well as prices have dropped," he added.
Calgary real estate
Residential real estate activity should moderate further in 2009 alongside a general weakening in domestic economic conditions, says a research report released Wednesday by Scotia Economics.
Real Estate Trends, authored by senior economist Adrienne Warren, said Canada can expect a 15 to 20 per cent decline in the volume of resales this year with a further 10 per cent drop in average prices.
"Centres with the largest supply-demand imbalance, including Vancouver, Sudbury (Ont.) and Calgary, have relatively greater downside risk," said the report.
Real Estate Trends, authored by senior economist Adrienne Warren, said Canada can expect a 15 to 20 per cent decline in the volume of resales this year with a further 10 per cent drop in average prices.
"Centres with the largest supply-demand imbalance, including Vancouver, Sudbury (Ont.) and Calgary, have relatively greater downside risk," said the report.
Wednesday, February 25, 2009
Buyers won't find U.S.-style fire sales on foreclosed homes
Alberta buyers shouldn't expect the same rock bottom prices on foreclosed homes in this province as advertised on U.S.-based television channels and websites, says the head of the province's real estate agent association.
Ads promising deals are hard to avoid, especially in Calgary where low prices on foreclosed properties in Arizona are advertised on local radio stations.
But Alberta Real Estate Association spokesman Bill Fowler is warning buyers that the situation in Canada is different.
"We see a lot of these late-night talk shows — 'Buy foreclosed property $300 down.' Well [it's] not happening in Alberta quite frankly," he said.
Ads promising deals are hard to avoid, especially in Calgary where low prices on foreclosed properties in Arizona are advertised on local radio stations.
But Alberta Real Estate Association spokesman Bill Fowler is warning buyers that the situation in Canada is different.
"We see a lot of these late-night talk shows — 'Buy foreclosed property $300 down.' Well [it's] not happening in Alberta quite frankly," he said.
Tuesday, February 24, 2009
Canadian Home Sales Take A Huge Dive
TORONTO —Despite the Conservatives deficit-laden budget geared towards kick starting the economy – the economic downturn continues as the latest housing date from across Canada shows. The number of home re-sales in January is down 40.9 per cent from a year earlier.
National average prices dropped 11.3 per cent year-over-year, according to Canadian Real Estate Association data released Friday.
The realtors group noted that the pace of seasonally adjusted monthly price declines eased in December and January compared with steep month-to-month tumbles of 14.9 per cent in October and 11.8 per cent in November.
The 11.3 per cent unadjusted national price decline was "skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most," the association stated.
As sales eroded, the number of listings also receded, posting the sharpest year-over-year decline on record, down 14.2 per cent from January 2008.
National average prices dropped 11.3 per cent year-over-year, according to Canadian Real Estate Association data released Friday.
The realtors group noted that the pace of seasonally adjusted monthly price declines eased in December and January compared with steep month-to-month tumbles of 14.9 per cent in October and 11.8 per cent in November.
The 11.3 per cent unadjusted national price decline was "skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most," the association stated.
As sales eroded, the number of listings also receded, posting the sharpest year-over-year decline on record, down 14.2 per cent from January 2008.
Sunday, February 22, 2009
Spoils of divorce found on real estate market
Divorce may be a personal tragedy, but it was the best thing that happened to real estate.
"It's rare to find couples who stay in the original marital home for 30 years anymore," says seasoned realtor Pamela Cyr, my agent and trusted confidante. "Happy couples move up and unhappy couples move out."
After 25 years in the business, Cyr has seen affairs of the heart create unexpected opportunities in real estate.
All hell breaks lose after Christmas, notes well-known Montreal divorce lawyer Andrew Heft.
"Starting around Jan. 5, we get a lot of calls. It happens every year. The holidays are like a pressure cooker. When they're over, the lid blows off. That's when the assets, like the house, become an issue."
"It's rare to find couples who stay in the original marital home for 30 years anymore," says seasoned realtor Pamela Cyr, my agent and trusted confidante. "Happy couples move up and unhappy couples move out."
After 25 years in the business, Cyr has seen affairs of the heart create unexpected opportunities in real estate.
All hell breaks lose after Christmas, notes well-known Montreal divorce lawyer Andrew Heft.
"Starting around Jan. 5, we get a lot of calls. It happens every year. The holidays are like a pressure cooker. When they're over, the lid blows off. That's when the assets, like the house, become an issue."
Friday, February 20, 2009
Are Toronto area house prices stabilizing?
Toronto’s real estate market is showing faint signs of stabilizing.
There were 2,044 homes sold in the first half of February, compared to 2,775 sales during the same period in 2008, the Toronto Real Estate Board said today.
The average selling price was $364,748, compared to $385,735 in the same period last year (and $343,632 in January, 2009). At the peak, in April, 2008, the average GTA house price was $398,687.
“If this trend continues into the spring, it could point towards average home prices leveling off between $360,000 and $370,000,” Jason Mercer, the board’s senior manager of market analysis.
There were 2,044 homes sold in the first half of February, compared to 2,775 sales during the same period in 2008, the Toronto Real Estate Board said today.
The average selling price was $364,748, compared to $385,735 in the same period last year (and $343,632 in January, 2009). At the peak, in April, 2008, the average GTA house price was $398,687.
“If this trend continues into the spring, it could point towards average home prices leveling off between $360,000 and $370,000,” Jason Mercer, the board’s senior manager of market analysis.
Thursday, February 19, 2009
Canadian real estate returns fall to 14 year low
Feb. 19 /CNW/ - IPD today released the 2008 results for the
ICREIM / IPD Canada Annual Property Index, which at the end of December 2008
covered C$96.5 billion of commercial real estate. The Index saw a total return
for 2008 of just 3.7%, down sharply from the 15.8% recorded in 2007, and the
lowest level since 1994.(1)
Despite the softening of investment yields, direct property still
outperformed equities, which fell by -31.4% according to the MSCI Canada
Index, and REITs which returned -39.3% according to the FTSE EPRA/NAREIT
Index, but trailed bonds which returned 15.2%, as measured by the JP Morgan
7-10 Year Government Bond Index.
"Declines in property values account for the weaker returns recorded in
2008, with on average capital value write downs of 2.3%," said Doug Rowlands,
Senior Manager at IPD.
ICREIM / IPD Canada Annual Property Index, which at the end of December 2008
covered C$96.5 billion of commercial real estate. The Index saw a total return
for 2008 of just 3.7%, down sharply from the 15.8% recorded in 2007, and the
lowest level since 1994.(1)
Despite the softening of investment yields, direct property still
outperformed equities, which fell by -31.4% according to the MSCI Canada
Index, and REITs which returned -39.3% according to the FTSE EPRA/NAREIT
Index, but trailed bonds which returned 15.2%, as measured by the JP Morgan
7-10 Year Government Bond Index.
"Declines in property values account for the weaker returns recorded in
2008, with on average capital value write downs of 2.3%," said Doug Rowlands,
Senior Manager at IPD.
Tuesday, February 17, 2009
Canadian Home Sales Plunge 41 Percent
TORONTO —Despite the Conservatives deficit-laden budget geared towards kick starting the economy – the economic downturn continues as the latest housing date from across Canada shows. The number of home resales in January is down 40.9 per cent from a year earlier.
National average prices dropped 11.3 per cent year-over-year, according to Canadian Real Estate Association data released Friday.
The realtors group noted that the pace of seasonally adjusted monthly price declines eased in December and January compared with steep month-to-month tumbles of 14.9 per cent in October and 11.8 per cent in November.
The 11.3 per cent unadjusted national price decline was "skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most," the association stated.
As sales eroded, the number of listings also receded, posting the sharpest year-over-year decline on record, down 14.2 per cent from January 2008.
National average prices dropped 11.3 per cent year-over-year, according to Canadian Real Estate Association data released Friday.
The realtors group noted that the pace of seasonally adjusted monthly price declines eased in December and January compared with steep month-to-month tumbles of 14.9 per cent in October and 11.8 per cent in November.
The 11.3 per cent unadjusted national price decline was "skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most," the association stated.
As sales eroded, the number of listings also receded, posting the sharpest year-over-year decline on record, down 14.2 per cent from January 2008.
Sunday, February 15, 2009
Home resales drop on woes of West
Last month, 16,343 Canadian houses changed hands, a drop of 41 per cent from January, 2008, according to a report yesterday from the Canadian Real Estate Association (CREA). The average price fell 11 per cent from the year before to $273,607.
Of the country's 25 major markets, all but Winnipeg reported a year-over-year drop in sales, and all but four experienced declines greater than 20 per cent. Vancouver saw a 59-per-cent drop; Calgary was down 49 per cent.
Housing prices fell in 13 of those markets, dropping most in Victoria (down 14.7 per cent) and Trois-Rivières (14.9 per cent) while other major centres also saw serious declines (Toronto was down 8.2 per cent, Vancouver 8.8, Calgary 11.4).
Of the country's 25 major markets, all but Winnipeg reported a year-over-year drop in sales, and all but four experienced declines greater than 20 per cent. Vancouver saw a 59-per-cent drop; Calgary was down 49 per cent.
Housing prices fell in 13 of those markets, dropping most in Victoria (down 14.7 per cent) and Trois-Rivières (14.9 per cent) while other major centres also saw serious declines (Toronto was down 8.2 per cent, Vancouver 8.8, Calgary 11.4).
Wednesday, February 11, 2009
Bank of Montreal real estate lending flagged
Real estate loan losses are expected to be the next bump in the road for Canadian banks, with Bank of Montreal downgraded by an analyst Monday over concerns with its U.S. credit exposure.
Bank of Montreal stands out from domestic rivals due to its large corporate and retail banking operation in the U.S. Midwest – the Harris Financial's footprint is referred to as Chicagoland in banking circles. That region has been hard hit by the U.S. downturn. In knocking down his forecast 2009 earnings for the bank by 10 per cent yesterday, Genuity Capital Markets analyst Mario Mendonca said he anticipated problems in the bank's U.S. home equity line of credit and commercial real estate loan portfolios.
Bank of Montreal stock has outperformed rivals recently and Mr. Mendonca flagged the fact that stock now trades at a modest 3 per cent discount to the peers, up from a 10-12 per cent discount throughout most of 2008. He moved from a 'hold' to an 'underperform' recomendation on the bank.
Bank of Montreal stands out from domestic rivals due to its large corporate and retail banking operation in the U.S. Midwest – the Harris Financial's footprint is referred to as Chicagoland in banking circles. That region has been hard hit by the U.S. downturn. In knocking down his forecast 2009 earnings for the bank by 10 per cent yesterday, Genuity Capital Markets analyst Mario Mendonca said he anticipated problems in the bank's U.S. home equity line of credit and commercial real estate loan portfolios.
Bank of Montreal stock has outperformed rivals recently and Mr. Mendonca flagged the fact that stock now trades at a modest 3 per cent discount to the peers, up from a 10-12 per cent discount throughout most of 2008. He moved from a 'hold' to an 'underperform' recomendation on the bank.
Monday, February 9, 2009
The new Canadian president of Coldwell Banker likes the position for the nation’s real estate industry
With that confidence, Geha predicts real estate is being sold, and will continue to be sold and only partly because Canadians need housing and shelter.
Admittedly, many consumers are waiting for even lower housing prices, something he expects in the short run.
“We do see things improving the end of this year or early next year,” he said.
Geha said Realtors and brokers who have been in the industry at least 20 years have seen other up and down market trends. Some sellers will want to wait for improved prices, a fact of improving supply-demand conditions that also becomes a factor for home buyers.
He said the recent federal budget, with home-renovation assistance, and declining bank interest rates are good news for the real estate industry. With more than 90 per cent of Canadians still employed, the buying sector is relatively strong.
That will open real estate for new buyers, he said. Some may build or buy a new home and that generates economic activity. Others will buy an existing home, and that means the seller will likely have to seek alternate accommodation. That also usually means renovations or purchase of furniture and improvements that adds to the economy.
Admittedly, many consumers are waiting for even lower housing prices, something he expects in the short run.
“We do see things improving the end of this year or early next year,” he said.
Geha said Realtors and brokers who have been in the industry at least 20 years have seen other up and down market trends. Some sellers will want to wait for improved prices, a fact of improving supply-demand conditions that also becomes a factor for home buyers.
He said the recent federal budget, with home-renovation assistance, and declining bank interest rates are good news for the real estate industry. With more than 90 per cent of Canadians still employed, the buying sector is relatively strong.
That will open real estate for new buyers, he said. Some may build or buy a new home and that generates economic activity. Others will buy an existing home, and that means the seller will likely have to seek alternate accommodation. That also usually means renovations or purchase of furniture and improvements that adds to the economy.
Friday, February 6, 2009
Toronto home resales down 47 per cent in January
TORONTO — The Toronto Real Estate board has tallied 2,670 home resales in January, down 47 per cent from a year earlier, and reported Thursday that the average price declined eight per cent.
Meanwhile, the number of rentals through realtors has surged 30 per cent.
"Demand for existing homes in the Greater Toronto Area moderated as the housing market followed the broader economic slowdown in Canada," commented Jason Mercer, the real estate board's manager of market analysis.
Meanwhile, the number of rentals through realtors has surged 30 per cent.
"Demand for existing homes in the Greater Toronto Area moderated as the housing market followed the broader economic slowdown in Canada," commented Jason Mercer, the real estate board's manager of market analysis.
Tuesday, February 3, 2009
B.C. house prices to plummet 13 per cent: forecast
British Columbia is tipping into a recession that will see average house prices fall by 13 per cent in 2009, rather than the nine per cent initially forecast, the B.C. Real Estate Association reported Monday.
Association chief economist Cameron Muir, in his forecast updated from last fall, foresees average prices falling to $396,600 in 2009, with overall sales declining to “levels we haven’t seen since the mid-1980s.”
Housing sales, according to the BCREA forecast, will decline nine per cent from 2008 levels to 62,650 sales in 2009 before bouncing back to 68,923 units in 2010.
Association chief economist Cameron Muir, in his forecast updated from last fall, foresees average prices falling to $396,600 in 2009, with overall sales declining to “levels we haven’t seen since the mid-1980s.”
Housing sales, according to the BCREA forecast, will decline nine per cent from 2008 levels to 62,650 sales in 2009 before bouncing back to 68,923 units in 2010.
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