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Greetings to all and a warm Welcome to New Subscribers.
Hello once again. I wanted to share some more information with you regarding interest rates and the real-estate market.
I have heard from the Head Economist for the Alberta Government and from the Head Economist for CIBC about their opinions
on where interest rates are going over the next year or so. Basically what both fellows are saying is that because our Canadian Dollar
Is reaching such a high our interest rates must remain low and stable. We may see a small increase over a one to two year time frame.
This increase would be no more than a percent or so. For one of the first times in a long while we are seeing USA interest rates climb and our
Canadian interest rates remain relatively stable. We did see small movements up and down over the last two weeks or so. The 5 year fixed rate went up
0.25% and then went back down. For all those people doing long term holds on their properties I am still recommending the Discount Variable Product.
The second article shows a trend of a healthy Canadian Real-Estate market over a three year period.
OTTAWA, April 12, 2005 — The Bank of Canada today announced that it is maintaining its target for the overnight rate at 2 1/2 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 2 3/4 per cent.
Data received since the Bank's last interest rate announcement on 1 March indicate that the Canadian and global economies have been evolving largely as expected. There is increasing evidence that the Canadian economy is adjusting to global developments. The Bank's outlook for the Canadian economy through to the end of 2006 is essentially unchanged from that in the January Monetary Policy Report Update, with growth this year and next expected to come primarily from strength in domestic demand. In these circumstances, the Bank decided to leave the target for the overnight rate unchanged.
As the economy moves back to its production capacity in the second half of 2006, core inflation is projected to return to the 2 per cent target around the end of next year. In line with this outlook, a reduction of monetary stimulus will be required over time.
There are both upside and downside risks to the outlook, which continue to relate largely to global developments, the associated relative price changes, and the adjustment of the Canadian economy. The details of the Bank's outlook for output and inflation and an analysis of the risks and uncertainties related to this outlook will be discussed in the Monetary Policy Report, to be released on 14 April 2005.
Information note:
OTTAWA, April 8, 2005 — The seasonally adjusted annual rate1 of housing starts was 218,500 in March, up 0.3 per cent from 217,800 in February, according to Canada Mortgage and Housing Corporation (CMHC).
"The high level of starts in March indicates that demand for new housing remains strong, supported by low mortgage rates and high levels of employment," said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. "Housing starts were lower than they were a year earlier, suggesting that activity in the housing market is slowing from its peak level set in 2004."
The seasonally adjusted annual rate of urban starts rose 0.4 per cent to 190,100 units in March. An increase in multiples starts was partially offset by a decline in singles. Multiple starts climbed 2.2 per cent in March to 97,000 while single starts declined 1.5 per cent to 93,100 on a seasonally adjusted annual basis.
In March, new construction activity was strongest in Western Canada. The seasonally adjusted annual rate of urban starts in British Columbia and the Prairies rose 11.3 per cent and 9.7 per cent, respectively. Housing starts decreased in March compared to last month in the Atlantic region (10.6 per cent), in Quebec (8.7), and in Ontario (2.2 per cent).
Rural starts in March were estimated at a seasonally adjusted annual rate of 28,400 units.
For the first three months of 2005, actual urban starts were 5.9 per cent lower than in the same period of 2004. Year to date single starts fell 9.4 per cent, and multiple starts eased 2.6 per cent.
1. All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.
Source: CMHC
*Seasonally adjusted annual rates
(CBC) - The value of building permits issued in February surged to the third-highest value on record, Statistics Canada said last week.
The total value of permits climbed 13.5 per cent from the previous month to $5.1 billion. Residential permits jumped 11.8 per cent to $3.4 billion -- the fourth monthly gain in five months.
Every province but Newfoundland and Labrador reported a rise in residential permits, with big increases in Ontario, Quebec, Alberta and British Columbia.
The rebound in permits suggests a busy time ahead for the country's house builders. Municipalities issued permits for 21,445 new units in February alone. That's the second highest monthly level in the last 15 years, Stats Can said.
Permits for single-family dwellings, which make up the biggest part of the home-building sector, rose 14.1 per cent to $2.2 billion in February.
"Several factors contributed to the strength in the housing sector: low, stable mortgage rates; rising disposable income; strength in employment; and a high degree of consumer confidence," Statistics Canada said.
For the first two months of the year, the value of overall construction permits hit $9.5 billion. That's 12.8 per cent higher than the total for the same period in 2004, which was a record year.
Some analysts said the building boom report won't by itself be enough to get the Bank of Canada to increase interest rates at its next policy-setting meeting in May.
I trust this information will come in handy and help you to stay informed.
One Small Saving on your Interest Rate will be worth Thousands! in the Long Term.
Feel Free to call anytime…
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