November home sales rise 73%: CREA
Sales of existing homes were up 73 per cent in November compared to last year's level, the Canadian Real Estate Association said Tuesday.
A total of 36,383 residential properties traded hands via the association's Multiple Listing Service of homes for sale. That was only 0.4 per cent off of the all-time high for November sales activity that was set in 2007. New monthly sales records were set in Ontario and Quebec.
"For housing, the recession was oh so last year," BMO economist Doug Porter said in a report released Tuesday, entitled It's Beginning to Look a Lot Like a Bubble.
The national average price gained 19 per cent compared to November 2008, at $337,231, the CREA said Tuesday. Year to date, the average price rose 4.4 per cent compared to the same period last year. But the average price in Canada's major markets was up 20 per cent year-over-year, to $368,665. Nationally, the average price in November edged back from the peak reached in October.
But Porter stopped short of calling an outright real estate bubble, noting that the reported price change was skewed by the surge in Vancouver and Toronto sales, two of the priciest markets.
"Using a fixed-weight measure, average home prices in the major markets have risen by a milder 11 per cent year over year - still robust, but short of a warning-bell-ringing pace," Porter noted.
Still, because home sales were extraordinarily weak for four months beginning in November 2008, "this will be but the first in a string of China-style gains for Canadian home sales and prices," Porter said.
Boost in new listings
Strong demand and price increases appear to be drawing more sellers into the market. New listings on the MLS system rose five per cent on a month-over-month basis in November to 69,110 units, the biggest monthly increase since January 2008.
But the surge in new listings hasn't pushed inventories higher, as much of the new housing stock is being gobbled up by buyers eagers to capitalize on record low interest rates.
There were 183,710 homes listed for sale on MLS at the end of November 2009. This is down 23 per cent from levels reported one year ago, and the seventh month in a row in which inventories have declined from year-ago levels. An increase is normal at this time of year, since demand tends to ease relative to supply over autumn and winter months.
Nationally, there were four months of inventory in November 2009 on a seasonally adjusted basis, the lowest level in more than two years.
Since the beginning of 2009, some 437,507 homes have been sold on the MLS system
Wednesday, December 16, 2009
Tuesday, December 15, 2009
Interst rates may rise despite BoC deadline
Interest rates may rise despite BoC deadline
Scotia economist warns of bond, mortgage hikes
Jonathan Chevreau, Financial Post Published: Thursday, December 10, 2009
Read more: http://www.nationalpost.com/news/story.html?id=2323217#ixzz0ZhT6MHQc
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Bond yields and mortgage rates could head higher before the Bank of Canada's pledge to hold interest rates steady expires in July, the chief economist at Bank of Nova Scotia said this week.
"There's a very good chance long-term rates will head up before then," Warren Jestin said in Toronto at a briefing sponsored by the Investment Funds Institute of Canada.
He warned new homeowners with variable-rate mortgages not to be influenced by the central bank's neutral statements on rates on Tuesday. The bank has pledged to hold rates at a historic low of 0.25% until the end of the second quarter of next year, inflation conditions permitting.
Read the "fine print" and he believes it's likely three-year and five-year mortgage rates will be higher before July 2010.
Mr. Jestin does not foresee a double-dip recession. "Those who expect renewed recession next spring will be proved wrong." For North America, "2010 is a year we fill in the hole we dug for ourselves in one of the most vicious recessions in our lives." But the global economy will grow at a "slower rate than we'd consider normal a few years ago. We believe expansion won't be that strong in 2011 so we don't see rates continuing up in 2011."
Christopher Probyn, managing director and chief economist for State Street Global Advisors, expects the U.S. Federal Reserve will raise interest rates by 0.75% to 1.5% in the second half of 2010. However, he said inflation may run surprisingly low so the Fed could "be on hold much longer than people anticipate."
The 2008-2009 period was by far the worst economy since the International Monetary Fund started collecting data in 1970. "For the first time, there was a contraction in the global economy." Growth in world gross domestic product fell from over 5% in 2007 to 3% in 2008 but went to -2.5% in 2009.
The low was the first quarter of 2009, when the economy contracted at a rate of 6% annualized. But it was flat in the second quarter and returned to positive growth in the third, "so throughout 2009 there has been progressive improvement."
Mr. Probyn foresees a sustained but "rather gradual" recovery, with GDP expanding 2.5% in 2010. Last week's favorable employment report suggests the next stage in recovery may already have arrived. "Maybe we're very close to achieving stability in the labor market," Mr. Probyn said.
Like Mr. Jestin, he doesn't foresee a double-dip recession in 2010. He said the recovery is more likely to be U-shaped, with some bouncing along the bottom, than the instant rebound of a Vshaped comeback.
Scotia economist warns of bond, mortgage hikes
Jonathan Chevreau, Financial Post Published: Thursday, December 10, 2009
Read more: http://www.nationalpost.com/news/story.html?id=2323217#ixzz0ZhT6MHQc
The National Post is now on Facebook. Join our fan community today.
Bond yields and mortgage rates could head higher before the Bank of Canada's pledge to hold interest rates steady expires in July, the chief economist at Bank of Nova Scotia said this week.
"There's a very good chance long-term rates will head up before then," Warren Jestin said in Toronto at a briefing sponsored by the Investment Funds Institute of Canada.
He warned new homeowners with variable-rate mortgages not to be influenced by the central bank's neutral statements on rates on Tuesday. The bank has pledged to hold rates at a historic low of 0.25% until the end of the second quarter of next year, inflation conditions permitting.
Read the "fine print" and he believes it's likely three-year and five-year mortgage rates will be higher before July 2010.
Mr. Jestin does not foresee a double-dip recession. "Those who expect renewed recession next spring will be proved wrong." For North America, "2010 is a year we fill in the hole we dug for ourselves in one of the most vicious recessions in our lives." But the global economy will grow at a "slower rate than we'd consider normal a few years ago. We believe expansion won't be that strong in 2011 so we don't see rates continuing up in 2011."
Christopher Probyn, managing director and chief economist for State Street Global Advisors, expects the U.S. Federal Reserve will raise interest rates by 0.75% to 1.5% in the second half of 2010. However, he said inflation may run surprisingly low so the Fed could "be on hold much longer than people anticipate."
The 2008-2009 period was by far the worst economy since the International Monetary Fund started collecting data in 1970. "For the first time, there was a contraction in the global economy." Growth in world gross domestic product fell from over 5% in 2007 to 3% in 2008 but went to -2.5% in 2009.
The low was the first quarter of 2009, when the economy contracted at a rate of 6% annualized. But it was flat in the second quarter and returned to positive growth in the third, "so throughout 2009 there has been progressive improvement."
Mr. Probyn foresees a sustained but "rather gradual" recovery, with GDP expanding 2.5% in 2010. Last week's favorable employment report suggests the next stage in recovery may already have arrived. "Maybe we're very close to achieving stability in the labor market," Mr. Probyn said.
Like Mr. Jestin, he doesn't foresee a double-dip recession in 2010. He said the recovery is more likely to be U-shaped, with some bouncing along the bottom, than the instant rebound of a Vshaped comeback.
Sunday, December 13, 2009
Housing Starts Hit their Highest Level This Year
Tavia Grant
Published on Tuesday, Dec. 08, 2009 8:17AM EST Last updated on Tuesday, Dec. 08, 2009 8:33AM EST
Housing starts hit their highest level this year in November, more proof that Canada's real-estate market has clawed out of recession.
Starts rose slightly to 158,500 units, on a seasonally adjusted basis, up from 157,400 in October as single-home construction outweighed a drop in multiple home activity, Canada Mortgage and Housing Corp. said Tuesday.
“The improvement in housing starts continued in November,” said Bob Dugan, CMHC's chief economist.
The results were slightly less than the 165,000 starts economists had expected. Still, they're running at a much stronger level than in April, when they sunk to the 118,500 mark.
Record low interest rates are fuelling a rebound in Canada's real-estate market, spurring rising prices and a flurry of buying activity. The Bank of Canada will provide its current view of lending rates and the economy today at 9 a.m. Eastern time.
More builders have plans in the works, a report showed yesterday. Building permits jumped 18 per cent in October to the highest value in 13 months, Statistics Canada said yesterday.
Multiple starts eased in November, CMHC said, to 71,300 units from 72,500 units a month earlier. Single starts rose 3.4 per cent to 69,800 units.
The annual rate of urban starts has risen the most in Quebec, at 10 per cent, followed by Atlantic Canada.
http://www.theglobeandmail.com/report-on-business/housing-starts-hit-2009-high/article1392416/
Published on Tuesday, Dec. 08, 2009 8:17AM EST Last updated on Tuesday, Dec. 08, 2009 8:33AM EST
Housing starts hit their highest level this year in November, more proof that Canada's real-estate market has clawed out of recession.
Starts rose slightly to 158,500 units, on a seasonally adjusted basis, up from 157,400 in October as single-home construction outweighed a drop in multiple home activity, Canada Mortgage and Housing Corp. said Tuesday.
“The improvement in housing starts continued in November,” said Bob Dugan, CMHC's chief economist.
The results were slightly less than the 165,000 starts economists had expected. Still, they're running at a much stronger level than in April, when they sunk to the 118,500 mark.
Record low interest rates are fuelling a rebound in Canada's real-estate market, spurring rising prices and a flurry of buying activity. The Bank of Canada will provide its current view of lending rates and the economy today at 9 a.m. Eastern time.
More builders have plans in the works, a report showed yesterday. Building permits jumped 18 per cent in October to the highest value in 13 months, Statistics Canada said yesterday.
Multiple starts eased in November, CMHC said, to 71,300 units from 72,500 units a month earlier. Single starts rose 3.4 per cent to 69,800 units.
The annual rate of urban starts has risen the most in Quebec, at 10 per cent, followed by Atlantic Canada.
http://www.theglobeandmail.com/report-on-business/housing-starts-hit-2009-high/article1392416/
Bank of Canada Forcast
Louise Egan
Ottawa — Reuters Published on Sunday, Dec. 06, 2009 10:57AM EST Last updated on Sunday, Dec. 06, 2009 4:56PM EST
The Bank of Canada is widely expected to keep its hands off interest rates Tuesday, holding them at near zero and committing to do so until at least July, despite growing evidence the economy is kicking back to life.
Fears of prolonged economic stagnation eased Friday with a report showing employers hired five times as many workers as expected. The data supported the Bank of Canada's view that economic growth will speed up in the fourth quarter after a disappointing third-quarter, when it barely crept out of recession with tepid 0.4 per cent annualized growth.
All 12 of Canada's primary securities dealers , surveyed by Reuters after the jobs report Friday, forecast the central bank would hold its overnight target rate unchanged at 0.25 per cent at its final policy-setting meeting of the year.
The bank releases its rate decision and accompanying statement at 9 a.m. ET Tuesday.
Two-thirds of the traders think the bank will follow through on its pledge to hold rates at that level through mid-2010, conditional on inflation staying on track.
“They will lean over backward to make their conditional forecast come true,” said David Laidler, an economist with the C.D. Howe Institute.
“What they might start doing between now and June or July, is they might start making more and more public noises about the need to raise interest rates immediately afterward. That's the kind of thing you'll see but not in this announcement,” he said.
Others think the bank's job will be to dampen any speculation that it will abandon its zero-rate policy at the earliest opportunity.
“We expect the bank to attempt to temper early rate hike expectations at next Tuesday's policy announcement,” said Sheryl King, head of Canadian economics and strategy at Bank of America Merrill Lynch.
The Bank of Canada will be pleased with the November job gains, not just because its prophecy of a robust 3.3 per cent fourth quarter may be fulfilled but because it lessens the bank's concerns about the strong Canadian dollar hindering a robust recovery.
Ottawa — Reuters Published on Sunday, Dec. 06, 2009 10:57AM EST Last updated on Sunday, Dec. 06, 2009 4:56PM EST
The Bank of Canada is widely expected to keep its hands off interest rates Tuesday, holding them at near zero and committing to do so until at least July, despite growing evidence the economy is kicking back to life.
Fears of prolonged economic stagnation eased Friday with a report showing employers hired five times as many workers as expected. The data supported the Bank of Canada's view that economic growth will speed up in the fourth quarter after a disappointing third-quarter, when it barely crept out of recession with tepid 0.4 per cent annualized growth.
All 12 of Canada's primary securities dealers , surveyed by Reuters after the jobs report Friday, forecast the central bank would hold its overnight target rate unchanged at 0.25 per cent at its final policy-setting meeting of the year.
The bank releases its rate decision and accompanying statement at 9 a.m. ET Tuesday.
Two-thirds of the traders think the bank will follow through on its pledge to hold rates at that level through mid-2010, conditional on inflation staying on track.
“They will lean over backward to make their conditional forecast come true,” said David Laidler, an economist with the C.D. Howe Institute.
“What they might start doing between now and June or July, is they might start making more and more public noises about the need to raise interest rates immediately afterward. That's the kind of thing you'll see but not in this announcement,” he said.
Others think the bank's job will be to dampen any speculation that it will abandon its zero-rate policy at the earliest opportunity.
“We expect the bank to attempt to temper early rate hike expectations at next Tuesday's policy announcement,” said Sheryl King, head of Canadian economics and strategy at Bank of America Merrill Lynch.
The Bank of Canada will be pleased with the November job gains, not just because its prophecy of a robust 3.3 per cent fourth quarter may be fulfilled but because it lessens the bank's concerns about the strong Canadian dollar hindering a robust recovery.
Wednesday, November 25, 2009
7 Ways to Raise Your Creidt Score
7 Ways To Raise Your Credit Score Posted on November 23, 2009 by Kerry
If you're in the market for a mortgage, a car loan, or looking to rent an apartment, it may be time to check your credit score.
A credit score is an ever changing three-digit number between 300 and 900. The higher your number, the more likely you are to be approved for a loan or to negotiate a preferred interest rate. If your credit score is low, you may pay higher rates or be denied credit based on the lender's criteria.
Check out the 5 Minute Guide to Your Credit Report and Credit Score to learn how to find your score.
Your credit score is an important piece of financial information. It's used by lenders, insurers, and landlords to gauge your credit behaviour and determine if you're a good candidate for credit. If you've lost out on an apartment or been denied a loan recently, it may be your credit score that's holding you back.
But don't worry if your score is low, there are ways to improve it. Since your credit score is recalculated continuously to reflect your recent bill payments and debt levels, your score from a month ago is probably not the same score today. Here are seven ways to raise your credit score:
1. Check your credit score at BOTH credit reporting agencies.
Your credit score can vary between Canada's two major credit reporting agencies, Equifax and TransUnion. Each agency uses different credit data as well as a slightly different credit scoring model to tally your number. If you're being denied credit, it may be that one agency is reporting differently. Checking your credit report and score at both agencies can also help you detect any fraudulent activity or possible instances of identity theft.
2. Report and correct any inaccuracies.
Don't let your credit score suffer due to inaccurate information on your file. Be proactive and protect yourself by reviewing your credit files. If you find an inaccuracy, contact the creditor or the credit reporting agency to correct it immediately.
3. Pay all your bills on time.
Lenders look for patterns and love to see a solid history of paying every bill on time. Any late credit card payments, collections, or bankruptcies can significantly lower your credit score -- so be punctual with each bill payment to raise your score.
Check out these 5 Ways to Beat Your Credit Card Debt for some score raising tips!
4. Watch your debt.
Don't run your credit balances close to your limit! Staying below half your available credit limit can help to improve your score sooner. For example, if you have a credit card with a $5,000 limit, try to keep the balance owed below $2,500.
5. Avoid applying for credit.
When you apply for credit, a "hard query" may be made to your report by the lender to check your creditworthiness. Too many "hard queries" in a short period of time can lower your score, so stick to applying for credit only when you need it. Checking your own score won't lower your score since this is a "soft query". Applying for a lot of credit may be interpreted as a sign of financial difficulty, which can impact your score as well.
6. Give yourself some time.
Time can improve your credit score, especially if you can establish a long history of paying bills on time and being responsible with credit. Negative factors such as bankruptcies, collections, or foreclosures drop off your report after a number of years, depending on your home province or territory.
7. Don't close old accounts.
It may seem counterintuitive to us, but unused credit is a good thing in the eyes of a credit reporting agency and lowering the amount of money you can borrow relative to your debt can impact your score.
If you're in the market for a mortgage, a car loan, or looking to rent an apartment, it may be time to check your credit score.
A credit score is an ever changing three-digit number between 300 and 900. The higher your number, the more likely you are to be approved for a loan or to negotiate a preferred interest rate. If your credit score is low, you may pay higher rates or be denied credit based on the lender's criteria.
Check out the 5 Minute Guide to Your Credit Report and Credit Score to learn how to find your score.
Your credit score is an important piece of financial information. It's used by lenders, insurers, and landlords to gauge your credit behaviour and determine if you're a good candidate for credit. If you've lost out on an apartment or been denied a loan recently, it may be your credit score that's holding you back.
But don't worry if your score is low, there are ways to improve it. Since your credit score is recalculated continuously to reflect your recent bill payments and debt levels, your score from a month ago is probably not the same score today. Here are seven ways to raise your credit score:
1. Check your credit score at BOTH credit reporting agencies.
Your credit score can vary between Canada's two major credit reporting agencies, Equifax and TransUnion. Each agency uses different credit data as well as a slightly different credit scoring model to tally your number. If you're being denied credit, it may be that one agency is reporting differently. Checking your credit report and score at both agencies can also help you detect any fraudulent activity or possible instances of identity theft.
2. Report and correct any inaccuracies.
Don't let your credit score suffer due to inaccurate information on your file. Be proactive and protect yourself by reviewing your credit files. If you find an inaccuracy, contact the creditor or the credit reporting agency to correct it immediately.
3. Pay all your bills on time.
Lenders look for patterns and love to see a solid history of paying every bill on time. Any late credit card payments, collections, or bankruptcies can significantly lower your credit score -- so be punctual with each bill payment to raise your score.
Check out these 5 Ways to Beat Your Credit Card Debt for some score raising tips!
4. Watch your debt.
Don't run your credit balances close to your limit! Staying below half your available credit limit can help to improve your score sooner. For example, if you have a credit card with a $5,000 limit, try to keep the balance owed below $2,500.
5. Avoid applying for credit.
When you apply for credit, a "hard query" may be made to your report by the lender to check your creditworthiness. Too many "hard queries" in a short period of time can lower your score, so stick to applying for credit only when you need it. Checking your own score won't lower your score since this is a "soft query". Applying for a lot of credit may be interpreted as a sign of financial difficulty, which can impact your score as well.
6. Give yourself some time.
Time can improve your credit score, especially if you can establish a long history of paying bills on time and being responsible with credit. Negative factors such as bankruptcies, collections, or foreclosures drop off your report after a number of years, depending on your home province or territory.
7. Don't close old accounts.
It may seem counterintuitive to us, but unused credit is a good thing in the eyes of a credit reporting agency and lowering the amount of money you can borrow relative to your debt can impact your score.
Monday, November 23, 2009
Mortgage Rate Article
Consumers need to prepare for higher mortgage rates next year: advisers
Kristine Owram, THE CANADIAN PRESSTORONTO - The Canadian housing market has seen a stronger and faster rebound from the recession than any other segment of the economy, due in large part to enticingly low mortgage rates.
But rates this low - 5.59 per cent for a five-year fixed-rate mortgage and 2.25 per cent for a five-year variable-rate mortgage at one bank - can't last forever, and experts are advising borrowers to prepare for higher rates within the next 12 months.
"We have to realize those are emergency interest rates," said CIBC economist Benjamin Tal.
"Interest rates will rise - it's just a question of time, it's not a question of if. And if that's the case, we have to make sure that when we borrow this money we can afford the same mortgage 200 or 300 basis points higher. That's the key responsibility now of borrowers and lenders, to make sure that what we do, we do it in a prudent way."
Depending on whether they are fixed or floating-rate, mortgages are tied to either the bond market or the Bank of Canada's key lending rate, which are closely related. The central bank's rate has been sitting at a record low of 0.25 per cent since the spring and it has said it will keep it steady until at least next June to help stimulate the ailing economy.
On Wednesday, three of Canada's biggest banks - Royal Bank (TSX:RY), Bank of Montreal (TSX:BMO) and TD Bank (TSX:TD) - announced that they will cut posted rates for fixed-rate mortgages by up to 0.25 percentage points. On Thursday, CIBC (TSX:CM), Laurentian Bank (TSX:LB) and Scotiabank (TSX:BNS) followed suit by cutting their five-year mortgages by 0.25 per cent to 5.59 per cent, in the case of CIBC and Scotiabank, and 5.6 per cent at Laurentian.
But mortgage lenders agree that rates are nearing the bottom and will begin to rise again in 2010.
"The only sort of assurance that you hear in the marketplace is the Bank of Canada's going to try to maintain that rate until June. But past that, there are already warnings that if there need to be adjustments, the adjustments could be a little more abrupt than we've been used to in the past," said Martin Beaudry, vice-president of retail lending at ING Direct.
CIBC's Tal said that with rates this low, "it's almost a crime not to take a mortgage out," but warned that consumers need to be prepared for higher interest rates later on and what this could mean for their personal finances.
For example, a $200,000 mortgage with a term of 25 years and an interest rate of 2.25 per cent has monthly payments of $876.26. For the same mortgage with an interest rate of five per cent, the monthly payments become $1,169.18.
And this doesn't only apply to variable-rate mortgages, but to fixed-rate mortgages that are coming up for renewal, Tal said.
"It's not just variable rates, because five years from now the rates will be much higher, so you don't want to find yourself in a situation five years from now where you can't afford the house," he said.
"It's important to be extremely prudent and not to be totally blinded by those rates."
Both John Turner, director of mortgages at BMO, and ING's Beaudry said they've seen an increase in the number of people opting for fixed-rate mortgages to ensure some certainty when interest rates begin to rise again.
"In the first six months (of 2009), we saw well over 60 per cent of our applications being for variable-rate mortgages, and in particular in our case five-year variable-rate mortgages," Beaudry said.
"Towards the latter part of the summer, until now, the trend has reversed to where we're seeing about 70 to 80 per cent of our applications going for five-year fixed-rate mortgages."
Turner agreed, saying 60 to 70 per cent of BMO's customers were opting for variable-rate mortgages in the past, but lately "there's been a slight shift to fixed."
The key is finding a monthly payment you feel comfortable with and then thinking ahead - if you have a variable-rate mortgage, or a fixed-rate mortgage that's coming up for renewal soon, will you be able to afford to continue to make your payments if interest rates go up?
Turner said now is the time to begin making more frequent payments, while interest rates are still low, if you can afford it. This will reduce your principal more quickly and will mean lower payments down the road when interest rates are higher.
"For example, if you have a $200,000 mortgage and you opt to pay biweekly (instead of monthly), you knock four years off your mortgage and save about $47,000 in interest just by doing that," he said.
As well, if you have a variable-rate mortgage, it's important to keep an eye on interest rates and lock in if you feel they're getting too high, said Jim Murphy, president and CEO of the Canadian Association of Accredited Mortgage Professionals, or CAAMP.
The association also recommends that homeowners renew their mortgages before the scheduled renewal dates given the current low level of interest rates.
However, Murphy predicted that when interest rates do start to go up it will be a gradual climb, and Canadians shouldn't worry about a sudden jump in the number of people who are forced to default on their mortgages.
"I think people are predicting that rates will start to increase in 2010 at some point in time, but it'll be more of a slow, measured increase as it goes up, and most Canadians who have variable products will have the ability to lock in," Murphy said.
CAAMP says the volumes of residential mortgage credit outstanding is forecast to grow by seven per cent between 2009 and 2011, and is predicted to pass $1 trillion in 2010. The average mortgage interest rate was 4.55 per cent as of October, down from 5.41 per cent a year ago.
Tuesday, November 17, 2009
Home Sale Hit Record High;Outlook upgraded
Homes sales hit record high; outlook upgraded
John Morrissy, Financial Post
OTTAWA -- Home sales hit a new record high in October, leading the Canadian Real Estate Association to boost its outlook for 2009 and 2010.
Resale home activity was up 41.5% in the month, reaching a total of 42,288 units. On a seasonally adjusted basis, homes sold on the Multiple Listing Service totalled 45,818 units in October.
"Low interest rates and upbeat consumer confidence continue to release the pent-up demand that built late last year and earlier this year," said CREA president Dale Ripplinger. "The release of that pent-up demand has boosted national sales activity to new heights and is drawing down inventories."
Further, said Millan Mulraine, economics strategist at TDSecurities, "we expect the recent strong gains in the housing market to remain largely intact, though we suspect that the back-to-back double-digit advance in sales seen earlier this year may not be repeated."
As a result of the sector's strong performance, CREA increased its forecast for sales in 2009 by 6.6% to 460,200 units. For 2010, the national industry group said sales would rise 7% to 492,300 units.
The average home price also reached new highs in October, climbing to $341,079, up 20.7% from a year ago. A separate measure, which limits its focus to Canada's major markets, showed the average price rising 22.1% to $373,095.
At the same time, the sharp rise in housing demand has eaten into inventories. With 194,994 homes listed for sale in Canada at the end of October, the number of listings is 20.8% below the peak reached in October of last year.
It is the sixth month in a row in which inventories have fallen from year-ago levels, bringing supply to 4.1 months on a seasonally adjusted basis, the lowest level in more than two years.
CREA chief economist Gregory Klump said new listings are expected to rise in coming months in response to headline average price increases.
New monthly sales records were set in about one fifth of local markets in October, including Toronto, Montreal and Ottawa. On a provincial basis, new records were set in British Columbia, Ontario and Quebec, largely as a result of increased activity in those provinces' major markets.
Canwest News Service
John Morrissy, Financial Post
OTTAWA -- Home sales hit a new record high in October, leading the Canadian Real Estate Association to boost its outlook for 2009 and 2010.
Resale home activity was up 41.5% in the month, reaching a total of 42,288 units. On a seasonally adjusted basis, homes sold on the Multiple Listing Service totalled 45,818 units in October.
"Low interest rates and upbeat consumer confidence continue to release the pent-up demand that built late last year and earlier this year," said CREA president Dale Ripplinger. "The release of that pent-up demand has boosted national sales activity to new heights and is drawing down inventories."
Further, said Millan Mulraine, economics strategist at TDSecurities, "we expect the recent strong gains in the housing market to remain largely intact, though we suspect that the back-to-back double-digit advance in sales seen earlier this year may not be repeated."
As a result of the sector's strong performance, CREA increased its forecast for sales in 2009 by 6.6% to 460,200 units. For 2010, the national industry group said sales would rise 7% to 492,300 units.
The average home price also reached new highs in October, climbing to $341,079, up 20.7% from a year ago. A separate measure, which limits its focus to Canada's major markets, showed the average price rising 22.1% to $373,095.
At the same time, the sharp rise in housing demand has eaten into inventories. With 194,994 homes listed for sale in Canada at the end of October, the number of listings is 20.8% below the peak reached in October of last year.
It is the sixth month in a row in which inventories have fallen from year-ago levels, bringing supply to 4.1 months on a seasonally adjusted basis, the lowest level in more than two years.
CREA chief economist Gregory Klump said new listings are expected to rise in coming months in response to headline average price increases.
New monthly sales records were set in about one fifth of local markets in October, including Toronto, Montreal and Ottawa. On a provincial basis, new records were set in British Columbia, Ontario and Quebec, largely as a result of increased activity in those provinces' major markets.
Canwest News Service
Friday, October 23, 2009
Central bank forcasts 3% GDP growth in 2010
Central bank forecasts 3% GDP growth in 2010
The Canadian economy is projected to grow by three per cent in 2010 and 3.3 per cent in 2011, the Bank of Canada said in its latest economic forecast Thursday.
The projections are slightly different from those the bank put out in its last update in July. Growth in the second half of this year looks strong, the bank said, with gains in economic output of two per cent and 3.3 per cent in the third and fourth quarters.
That's up from the July estimates of 1.3 per cent and three per cent respectively.
Overall, the Canadian economy is expected to shrink by 2.4 per cent in 2009. That's slightly worse than the 2.3 per cent forecast in July.
The projections for the medium term were downgraded slightly. The three per cent expectation for 2010 in unchanged, but the 3.3 per cent growth the bank now expects in 2011 is 0.2 percentage points off what was expected in July.
"Global economic and financial developments have been somewhat more favourable than expected at the time of the July Report, although significant fragilities remain," the bank said in its latest Monetary Policy Report.
The economy will not reach capacity, when supply and demand are in balance, until 2011, the bank now forecasts.
Despite the generally positive overall tone, the document notes the bank is deeply concerned by the effects of a soaring loonie. "Heightened volatility and persistent strength in the Canadian dollar are working to slow growth and subdue inflation pressures," the bank said.
"The current strength in the dollar is expected, over time, to more than fully offset the favourable developments since July."
The Canadian dollar remained relatively stable from July to early October, trading in a range of 90 to 94 cents US. More recently, however, it has appreciated sharply, averaging about 96 cents US over the past 10 days, much higher than the 87 cents US the bank had assumed at the time of its July report.
In the immediate aftermath of the news, the Canadian dollar fell, slipping a third of a cent to 95.24 cents US at midday. "The Canadian dollar is finished in my mind," currency trader Ian Cochrane at Calgary-based BNH Strategies told CBC News. "Forget about raising rates, they're going the other way. The Bank of Canada governor basically told us this in no uncertain terms."
On Tuesday, the bank maintained its policy rate at 0.25 per cent and reaffirmed its conditional commitment to hold its current policy rate steady until the end of the second quarter of 2010.
"People should manage their affairs prudently in anticipation that at some point rates will return to a more normal level," Bank of Canada governor Mark Carney said at a press conference following the release of the report on Thursday.
"Clearly there are going to need to be adjustments in exchange rate policies in many G20 countries." Carney also expressed some concerns over consumer debt levels, saying it is something the bank keeps a close eye on.
"Consumer borrowing cannot grow faster than the economy forever, to state the obvious," he cautioned. "But Canadian consumer balance sheets are starting from a much firmer starting point than U.S. ones," he noted.
From Sympatico finance page
The Canadian economy is projected to grow by three per cent in 2010 and 3.3 per cent in 2011, the Bank of Canada said in its latest economic forecast Thursday.
The projections are slightly different from those the bank put out in its last update in July. Growth in the second half of this year looks strong, the bank said, with gains in economic output of two per cent and 3.3 per cent in the third and fourth quarters.
That's up from the July estimates of 1.3 per cent and three per cent respectively.
Overall, the Canadian economy is expected to shrink by 2.4 per cent in 2009. That's slightly worse than the 2.3 per cent forecast in July.
The projections for the medium term were downgraded slightly. The three per cent expectation for 2010 in unchanged, but the 3.3 per cent growth the bank now expects in 2011 is 0.2 percentage points off what was expected in July.
"Global economic and financial developments have been somewhat more favourable than expected at the time of the July Report, although significant fragilities remain," the bank said in its latest Monetary Policy Report.
The economy will not reach capacity, when supply and demand are in balance, until 2011, the bank now forecasts.
Despite the generally positive overall tone, the document notes the bank is deeply concerned by the effects of a soaring loonie. "Heightened volatility and persistent strength in the Canadian dollar are working to slow growth and subdue inflation pressures," the bank said.
"The current strength in the dollar is expected, over time, to more than fully offset the favourable developments since July."
The Canadian dollar remained relatively stable from July to early October, trading in a range of 90 to 94 cents US. More recently, however, it has appreciated sharply, averaging about 96 cents US over the past 10 days, much higher than the 87 cents US the bank had assumed at the time of its July report.
In the immediate aftermath of the news, the Canadian dollar fell, slipping a third of a cent to 95.24 cents US at midday. "The Canadian dollar is finished in my mind," currency trader Ian Cochrane at Calgary-based BNH Strategies told CBC News. "Forget about raising rates, they're going the other way. The Bank of Canada governor basically told us this in no uncertain terms."
On Tuesday, the bank maintained its policy rate at 0.25 per cent and reaffirmed its conditional commitment to hold its current policy rate steady until the end of the second quarter of 2010.
"People should manage their affairs prudently in anticipation that at some point rates will return to a more normal level," Bank of Canada governor Mark Carney said at a press conference following the release of the report on Thursday.
"Clearly there are going to need to be adjustments in exchange rate policies in many G20 countries." Carney also expressed some concerns over consumer debt levels, saying it is something the bank keeps a close eye on.
"Consumer borrowing cannot grow faster than the economy forever, to state the obvious," he cautioned. "But Canadian consumer balance sheets are starting from a much firmer starting point than U.S. ones," he noted.
From Sympatico finance page
Monday, October 19, 2009
Good habits we've gained from the recession
Good habits we’ve gained from the recession
Posted on October 14, 2009 by Flyerland
Throughout the recent economic meltdown many people started cutting back on their spending and living on less. The Canadian economy is moving toward recovery, but it still pays to be frugal, especially when you’re saving for the things you really want. Maintaining your recession shopper savings strategies—even in good times—can help you keep more cash in your pocket.
Here are just a few of the valuable lessons learned through the recent financial crisis that we should keep in mind no matter how the economy is doing.
Posted on October 14, 2009 by Flyerland
Throughout the recent economic meltdown many people started cutting back on their spending and living on less. The Canadian economy is moving toward recovery, but it still pays to be frugal, especially when you’re saving for the things you really want. Maintaining your recession shopper savings strategies—even in good times—can help you keep more cash in your pocket.
Here are just a few of the valuable lessons learned through the recent financial crisis that we should keep in mind no matter how the economy is doing.
- Review your spending habits. Do you know where your money is going each week? One tried and true trick is to track every purchase for a week or two. Write down everything from the grocery bill to the cost of your morning latte. You will likely see spending patterns emerge and places where you can cut back and save.
- Use a shopping list. More people are using—and sticking to—lists to plan shopping trips. This helps to avoid over-spending or purchasing items you don’t need. And, why not try shopping for things like groceries online, where there might be less impulse buys if you can’t see and smell the goods.
- Shop the sales. Who doesn’t like buying stuff on sale? Check out Flyerland.ca for the latest flyers—not only for deals on groceries but clothing, electronics, furniture, home improvement and much more!
- Buy in bulk. When you find a great deal on the items you use every day—food staples and non-perishables, cleaning supplies, laundry detergent or dog food—stock up and save.
- Try other stores. If you shop at the same supermarket you could be missing out on super savings. Flyerland.ca posts flyers for all the major stores, making it easy to compare prices.
- Use points cards. When your favourite products are on sale or can earn you bonus points, buy a bunch. The points add up and can save you money on future purchases. Take a few minutes to register for the points program at your local stores. Shopping at Sobey’s, Loblaws, Metro and Shopper’s Drug Mart can earn you points, and that adds up to savings. The caveat is to make sure that you are buying things that you need or use often.
- Invest your savings. People are budgeting smarter and planning better. And with all the money you’re saving there are ways to invest. Contribute to an RESP for your children, or open a Tax-free Savings Account and save up to $5,000 each year without paying tax on the interest. You can also use your savings to pay down your mortgage or up your RRSP contribution—your financial planner can recommend the strategy that’s best for you.
Tuesday, October 13, 2009
Mortgage Rate On The Rise
Mortgage rates on the rise...some lenders still offer current rates until midnight tonight
Several Canadian banks raise rates for closed, fixed rate mortgages
THE CANADIAN PRESS TORONTO -
Several Canadian banks (TSX:BNS, TSX:CM, TSX:BMO) raised their posted rates for closed, fixed rate mortgages by up to 0.35 percentage points effective Wednesday.
Scotiabank, CIBC and the Bank of Montreal all raised their five-year closed rate by 0.35 percentage points. Increases for other mortgages ranging from one year to 10 years ranged from no change to 0.35 percentage points.
The change follows a similar move by the Royal Bank to raise rates last week.
Several Canadian banks raise rates for closed, fixed rate mortgages
THE CANADIAN PRESS TORONTO -
Several Canadian banks (TSX:BNS, TSX:CM, TSX:BMO) raised their posted rates for closed, fixed rate mortgages by up to 0.35 percentage points effective Wednesday.
Scotiabank, CIBC and the Bank of Montreal all raised their five-year closed rate by 0.35 percentage points. Increases for other mortgages ranging from one year to 10 years ranged from no change to 0.35 percentage points.
The change follows a similar move by the Royal Bank to raise rates last week.
Monday, October 12, 2009
How to know if you qualify for the new Home Buyers' Tax Credit
How to know if you qualify for the new Home Buyers' Tax Credit
www.newscanada.com
Find out if you meet the criteria to claim federal government money
Before you claim the proposed First-Time Home Buyers' Tax Credit, there are some things you should know about qualifying:
Neither you, your spouse or common-law partner lived in a house that either of you owned in the year of purchase or any of the four preceding years.
- If you are a person with a disability or are buying a house for a relative with a disability, you don't have to be a first-time home buyer. However, the home must be purchased to allow the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
- A qualifying home is a housing unit located in Canada that already exists or is being built.
- A share in a co-operative housing corporation that entitles you to possess, and that gives you an equity interest in a housing unit located in Canada, also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.
- The home must have been acquired after January 27, 2009.
The HBTC is part of the Government of Canada's $62 billion economic stimulus announced in the Economic Action Plan to give first-time home buyers up to $750 in tax relief.
For more information, visit www.cra-arc.gc.ca.
www.newscanada.com
Find out if you meet the criteria to claim federal government money
Before you claim the proposed First-Time Home Buyers' Tax Credit, there are some things you should know about qualifying:
Neither you, your spouse or common-law partner lived in a house that either of you owned in the year of purchase or any of the four preceding years.
- If you are a person with a disability or are buying a house for a relative with a disability, you don't have to be a first-time home buyer. However, the home must be purchased to allow the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
- A qualifying home is a housing unit located in Canada that already exists or is being built.
- A share in a co-operative housing corporation that entitles you to possess, and that gives you an equity interest in a housing unit located in Canada, also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.
- The home must have been acquired after January 27, 2009.
The HBTC is part of the Government of Canada's $62 billion economic stimulus announced in the Economic Action Plan to give first-time home buyers up to $750 in tax relief.
For more information, visit www.cra-arc.gc.ca.
Saturday, October 10, 2009
Wednesday, October 7, 2009
In the News
Housing market recovering: Royal LePage
08/10/2009 8:49:49 AM
The Canadian housing market is on the road to recovery, a new report by real estate brokerage Royal LePage suggests.
The average price of a two-storey home in Canada in the third quarter of 2009 was comparable to a year ago, up 0.1 per cent to $409,335. Average bungalow values increased 0.06 per cent year-over-year to $341,146, while the price of an average condominium increased 0.09 per cent to $243,748, the company said.
After the recession caused a sales drought and declining prices in the fourth quarter of 2008 and first quarter of 2009, there's actually a "pronounced undersupply" of homes in Ontario and other parts of the country.
Bidding wars in some cities. A shortage in housing supply is leading to bidding wars in several cities, including Toronto, Richmond Hill, Ont., Markham, Ont., Montreal, St. John?s, Saint John, Moncton, Edmonton, Calgary, North and West Vancouver, and Victoria, the company said.
But the company stopped well short of predicting a boom to come. The data suggests a "normal market correction and not the beginning of another aggressive expansionary cycle," the company said.
"Once housing supply returns to normal levels, we believe the economy will support modest pricing growth into 2010,? Royal LePage president Phil Soper said in a statement.
Regionally, the Atlantic provinces saw a strong recovery in home prices with double-digit percentage increases year-over-year in some markets in the third quarter of 2009.
Western provinces, especially British Columbia and Alberta, have been slower to recover from the significant price corrections that occurred in 2008, the company said.
Ontario and Quebec saw home prices stabilize or gain slightly year-over-year with much of the recovery occurring throughout the strong third quarter.
The Royal LePage survey is the largest monitor of seven types of housing in more than 250 neighbourhoods across the country.
08/10/2009 8:49:49 AM
The Canadian housing market is on the road to recovery, a new report by real estate brokerage Royal LePage suggests.
The average price of a two-storey home in Canada in the third quarter of 2009 was comparable to a year ago, up 0.1 per cent to $409,335. Average bungalow values increased 0.06 per cent year-over-year to $341,146, while the price of an average condominium increased 0.09 per cent to $243,748, the company said.
After the recession caused a sales drought and declining prices in the fourth quarter of 2008 and first quarter of 2009, there's actually a "pronounced undersupply" of homes in Ontario and other parts of the country.
Bidding wars in some cities. A shortage in housing supply is leading to bidding wars in several cities, including Toronto, Richmond Hill, Ont., Markham, Ont., Montreal, St. John?s, Saint John, Moncton, Edmonton, Calgary, North and West Vancouver, and Victoria, the company said.
But the company stopped well short of predicting a boom to come. The data suggests a "normal market correction and not the beginning of another aggressive expansionary cycle," the company said.
"Once housing supply returns to normal levels, we believe the economy will support modest pricing growth into 2010,? Royal LePage president Phil Soper said in a statement.
Regionally, the Atlantic provinces saw a strong recovery in home prices with double-digit percentage increases year-over-year in some markets in the third quarter of 2009.
Western provinces, especially British Columbia and Alberta, have been slower to recover from the significant price corrections that occurred in 2008, the company said.
Ontario and Quebec saw home prices stabilize or gain slightly year-over-year with much of the recovery occurring throughout the strong third quarter.
The Royal LePage survey is the largest monitor of seven types of housing in more than 250 neighbourhoods across the country.
In the News
Resale housing on rebound: TD
07/10/2009 4:57:10 PMCBC
News Markets for resale housing have rebounded sharply in nine Canadian cities, TD economists reported Wednesday.
Their report said the number of home resales, after dropping by nearly a third in the last six months of 2008, climbed back 61 per cent from January through August. The economists attribute the bounce back to pent-up demand, lower prices and low interest rates.
The report looked at markets in Vancouver, Calgary, Edmonton, Saskatoon, Winnipeg, Toronto, Ottawa, Montreal and Halifax.
"We estimate that between 45,000 and 53,000 sales that would normally have occurred in [the last three months of] 2008 did not, because of the fear and uncertainty created by the financial market turmoil," the report said.
After the dust settled and it became clearer that the economy was not tilting into deflation and depression, potential buyers had another look.
What they were looking at in most markets was an incredible window of opportunity: an environment in which price concessions had been made and where mortgage rates were at rock bottom low levels."
TD predicts that demand will level off by November and that more homes will come on the market and prices will rise only modestly the rest of 2009 and through 2010.
TD expects rising prices in 2011 will weaken demand but, as more houses will come on the market, the rate of price increases will ease.
07/10/2009 4:57:10 PMCBC
News Markets for resale housing have rebounded sharply in nine Canadian cities, TD economists reported Wednesday.
Their report said the number of home resales, after dropping by nearly a third in the last six months of 2008, climbed back 61 per cent from January through August. The economists attribute the bounce back to pent-up demand, lower prices and low interest rates.
The report looked at markets in Vancouver, Calgary, Edmonton, Saskatoon, Winnipeg, Toronto, Ottawa, Montreal and Halifax.
"We estimate that between 45,000 and 53,000 sales that would normally have occurred in [the last three months of] 2008 did not, because of the fear and uncertainty created by the financial market turmoil," the report said.
After the dust settled and it became clearer that the economy was not tilting into deflation and depression, potential buyers had another look.
What they were looking at in most markets was an incredible window of opportunity: an environment in which price concessions had been made and where mortgage rates were at rock bottom low levels."
TD predicts that demand will level off by November and that more homes will come on the market and prices will rise only modestly the rest of 2009 and through 2010.
TD expects rising prices in 2011 will weaken demand but, as more houses will come on the market, the rate of price increases will ease.
How to use the Equity in Home to Take Advantage of the Home Renovation Tax Credit
Have you been putting off some needed or wanted renovations? With the available Home Renovation Tax Credit offered by the government, now is a good time to get some renovations done.
The basics are spend $10, 000 on approved home renovations and receive up to a $1350 tax credit. *see blog post for infomation on government site for details
Did you know you can use your exisiting equity in your home to do those home renovations?
A couple of options are
1) Refinance plus improvement
2) Equity line of Credit
3) Equity Visa
4) Purchase plus improvement
These products combined with the great mortgage rate available make putting in a new kitchen or finishing your basement affordable.
The basics are spend $10, 000 on approved home renovations and receive up to a $1350 tax credit. *see blog post for infomation on government site for details
Did you know you can use your exisiting equity in your home to do those home renovations?
A couple of options are
1) Refinance plus improvement
2) Equity line of Credit
3) Equity Visa
4) Purchase plus improvement
These products combined with the great mortgage rate available make putting in a new kitchen or finishing your basement affordable.
Put Your Tax Dollars Back Into Your Home-The Home Renovation Tax Credit
Put Your Tax Dollars Back Into Your Home
13 July 2009
Save up to $1,350 on home improvements purchased before February 1, 2010.
The Home Renovation Tax Credit applies to eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum non-refundable tax credit of $1,350 [($10,000 - $1000) x 15%].
The Home Renovation Tax Credit is subject to Parliamentary approval.
You can claim a non-refundable tax credit on your 2009 income tax return. This tax credit is based on eligible expenses incurred for work performed or goods acquired after January 27, 2009 and before February 1, 2010. Only agreements entered into after January 27, 2009 and related to a qualified dwelling are eligible.
Where can you get Home Renovation Tax Credit envelopes?
Home Renovation Tax Credit envelopes will be available by the beginning of September. [more...]
Can you claim the HRTC?
Eligibility, time limits, dwelling and eligible expenses [more...]
How to calculate your HRTC
Worksheet and examples of calculations [more...]
How to claim your HRTC
Acceptable supporting documentation, medical expense tax credit and other tax credits [more...]
For more information about the Home Renovation Tax Credit, please call 1-888-959-1-CRA or visit www.cra.gc.ca/hrtc
The Home Renovation Tax Credit is subject to Parliamentary approval.
13 July 2009
Save up to $1,350 on home improvements purchased before February 1, 2010.
The Home Renovation Tax Credit applies to eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum non-refundable tax credit of $1,350 [($10,000 - $1000) x 15%].
The Home Renovation Tax Credit is subject to Parliamentary approval.
You can claim a non-refundable tax credit on your 2009 income tax return. This tax credit is based on eligible expenses incurred for work performed or goods acquired after January 27, 2009 and before February 1, 2010. Only agreements entered into after January 27, 2009 and related to a qualified dwelling are eligible.
Where can you get Home Renovation Tax Credit envelopes?
Home Renovation Tax Credit envelopes will be available by the beginning of September. [more...]
Can you claim the HRTC?
Eligibility, time limits, dwelling and eligible expenses [more...]
How to calculate your HRTC
Worksheet and examples of calculations [more...]
How to claim your HRTC
Acceptable supporting documentation, medical expense tax credit and other tax credits [more...]
For more information about the Home Renovation Tax Credit, please call 1-888-959-1-CRA or visit www.cra.gc.ca/hrtc
The Home Renovation Tax Credit is subject to Parliamentary approval.
Monday, October 5, 2009
Grandma Thompson's Prize-Winning Apple Pie
Just in time for Thanksgiving!
Grandma Thompson's Prize-Winning Apple Pie
By Adell Shneer and The Canadian Living Test Kitchen (canadianliving.com)
Related Content- Maple Magic with Cheddar- Peach Blackberry Cobbler- Crispy Oven-Baked Chicken Fingers with Zesty Caesar Dip
Thanksgiving weekend last year and The Village at Blue Mountain, Ont., was filled with the fragrance of freshly baked apple pies. For the first-ever Quintessential Apple Pie contest, bakers from this apple-growing region that rings Georgian Bay carried their pies – double crust, single crust, lattice top, streusel, Cheddar crust, even a chocolate apple combo – to the judging tables. Collingwood baking enthusiast Brenda Hall took first prize with a classic double-crust pie – a family recipe that's not too sweet but full and juicy with freshly harvested local McIntosh apples.
Servings: 8
Ingredients: Double-Crust sour_cream Pastry 1 egg_yolk2 tbsp (25 mL) coarse_sugarFilling:8 apples (such as McIntosh or Northern Spy), about 3 lb (1.5 kg)3/4 cup (175 mL) granulated_sugar2 tbsp (25 mL) cornstarch1 tsp (5 mL) cinnamonPinch each ground nutmeg and salt2 tbsp (25 mL) butter, softened
Filling: Peel and core apples; cut into 1/4-inch (5 mm) thick slices and place in large bowl. In small bowl, toss together sugar, cornstarch, cinnamon, nutmeg and salt ; add to apples and toss to coat. On lightly floured surface, roll out half of the pastry to generous 1/8-inch (3 mm) thickness; fit into 9-inch (23 cm) pie plate. Trim to leave 3/4-inch (2 cm) overhang; fold under and flute edge. Scrape filling into pie shell; dot with butter.Roll out remaining pastry. Whisk egg yolk with 1 tbsp (15 mL) water; brush over pastry rim. Fit pastry over filling; trim to leave 3/4-inch (2 cm) overhang. Fold overhang under bottom pastry rim; seal and flute edge. Brush egg mixture over pastry. Cut steam vents in top; sprinkle with coarse sugar. Bake in bottom third of 450°F (230°C) oven for 10 minutes. Reduce heat to 350°F (180°C); bake for 65 minutes or until bottom is deep golden and filling is bubbling and thickened. Let cool on rack. (Make-ahead: Set aside for up to 24 hours.)
Grandma Thompson's Prize-Winning Apple Pie
By Adell Shneer and The Canadian Living Test Kitchen (canadianliving.com)
Related Content- Maple Magic with Cheddar- Peach Blackberry Cobbler- Crispy Oven-Baked Chicken Fingers with Zesty Caesar Dip
Thanksgiving weekend last year and The Village at Blue Mountain, Ont., was filled with the fragrance of freshly baked apple pies. For the first-ever Quintessential Apple Pie contest, bakers from this apple-growing region that rings Georgian Bay carried their pies – double crust, single crust, lattice top, streusel, Cheddar crust, even a chocolate apple combo – to the judging tables. Collingwood baking enthusiast Brenda Hall took first prize with a classic double-crust pie – a family recipe that's not too sweet but full and juicy with freshly harvested local McIntosh apples.
Servings: 8
Ingredients: Double-Crust sour_cream Pastry 1 egg_yolk2 tbsp (25 mL) coarse_sugarFilling:8 apples (such as McIntosh or Northern Spy), about 3 lb (1.5 kg)3/4 cup (175 mL) granulated_sugar2 tbsp (25 mL) cornstarch1 tsp (5 mL) cinnamonPinch each ground nutmeg and salt2 tbsp (25 mL) butter, softened
Filling: Peel and core apples; cut into 1/4-inch (5 mm) thick slices and place in large bowl. In small bowl, toss together sugar, cornstarch, cinnamon, nutmeg and salt ; add to apples and toss to coat. On lightly floured surface, roll out half of the pastry to generous 1/8-inch (3 mm) thickness; fit into 9-inch (23 cm) pie plate. Trim to leave 3/4-inch (2 cm) overhang; fold under and flute edge. Scrape filling into pie shell; dot with butter.Roll out remaining pastry. Whisk egg yolk with 1 tbsp (15 mL) water; brush over pastry rim. Fit pastry over filling; trim to leave 3/4-inch (2 cm) overhang. Fold overhang under bottom pastry rim; seal and flute edge. Brush egg mixture over pastry. Cut steam vents in top; sprinkle with coarse sugar. Bake in bottom third of 450°F (230°C) oven for 10 minutes. Reduce heat to 350°F (180°C); bake for 65 minutes or until bottom is deep golden and filling is bubbling and thickened. Let cool on rack. (Make-ahead: Set aside for up to 24 hours.)
Sunday, October 4, 2009
2009 E-Waste Events
Keep electronics out of the landfill. Bring your unwanted and broken electronic and electrical equipment for FREE recycling at one of the local events. No appliances are excepted.
Satellite Systems
Computers, monitors, printers and accessories
Fax machines and photocopiers
Gaming systems
Televisions
Phones and PDAs
Calculators and electronic cash registers
Radios, amplifiers, turntables and stereos
VCR, DVD players and projectors
Cameras and recorders
Sat Oct 17 9am to 1pm
Municipality of Clarington
178 Darlington/Clarke
Townline Rd. Bowmanville
Sat Oct 24 9am to 1pm
Town of Whitby
Whitby Operations Centre
333 Mc Kinney Dr Whitby
Durham Region Works Department www.durhamregionwaste.ca
Satellite Systems
Computers, monitors, printers and accessories
Fax machines and photocopiers
Gaming systems
Televisions
Phones and PDAs
Calculators and electronic cash registers
Radios, amplifiers, turntables and stereos
VCR, DVD players and projectors
Cameras and recorders
Sat Oct 17 9am to 1pm
Municipality of Clarington
178 Darlington/Clarke
Townline Rd. Bowmanville
Sat Oct 24 9am to 1pm
Town of Whitby
Whitby Operations Centre
333 Mc Kinney Dr Whitby
Durham Region Works Department www.durhamregionwaste.ca
Saturday, October 3, 2009
In the News
With mortgage rates dropping, it's strategy time
ROB CARRICK
September 15, 2009
It was a little less than a year ago that the global financial crisis began to hit home, which is to say that mortgage rates spiked higher.
Now, the cost of mortgages is coming down. If you're buying a home or renewing a mortgage, it's time to review your options.
Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate mortgages. For the first time in almost a year, it's possible to get a variable-rate mortgage at the prime rate used by most major financial institutions, which is currently 2.25 per cent.
Pre-crisis, variable-rate mortgages came with discounts that ranged from 0.75 percentage points to as much as 0.9 points off prime. By late last fall, crisis conditions prompted lenders to start charging prime plus a full percentage point or more. Now, some lenders are starting to unwind their crisis-rate premiums.
"Variable-rate mortgages are all over the map right now," said Gary Siegle, regional manager with the mortgage brokerage firm Invis Inc. in Calgary. "We're seeing them right in the area of prime with some lenders."
An example of a variable-rate mortgage at prime: ResMor Trust, a small player that deals through mortgage brokers, is offering four-year variable-rate mortgages at prime in all provinces except Quebec. The catch: You have to have your mortgage approved by Sept. 30 and close the purchase within 45 days.
Can variable-rate mortgages fall back to their pre-crisis lows any time soon?
"Definitely, 100 per cent, no," said Robert McLister, a mortgage broker and author of the Canadian Mortgage Trends blog (canadianmortgagetrends.com). "Could they get a little below prime? Definitely."
Okay, it's strategy time. With prime at 2.25 per cent and fully discounted five-year fixed-rate mortgages going for something in the area of 3.9 to 4.1 per cent, you're got some thinking to do if you're buying a home or renewing a mortgage.
The variable rate looks tempting. Sure, the prime is going to rise in the medium term, but it's expected to stay put until next spring at least. Even when prime does move higher, it will have to increase by roughly 1.75 percentage points to get to where today's five-year mortgages are.
"The risk is obviously that rates go up a lot more," Mr. McLister warned. "Rates went down four percentage points from December, 2007, through April, 2009. They could easily go up four - why not?"
Variable-rate mortgages allow you to lock into a fixed-rate mortgage, so there's no reason why you have to ride interest rates all the way up. Still, you have to recognize that fixed-rate mortgages could be significantly more expensive by the time you decide to lock in.
An academic study of rates between 1950 and 2007 found variable-rate mortgages were the money-saving choice over five-year fixed-rate mortgages 89 per cent of the time. If you're willing to ride rates higher for a while in hopes of longer-term savings on interest costs, then consider a possible approach suggested by Mr. McLister.
Instead of arranging a variable-rate mortgage now, go for a one-year fixed-rate mortgage. Then, when you're renewing in one year's time, you'll move into a variable-rate mortgage that will ideally have a rate that is discounted below prime.
Fully discounted one-year closed mortgages today go for about 2.55 per cent, so you're not paying much of a penalty at all compared with what variable-rate mortgages are pegged at right now.
Another suggestion from Mr. McLister is to consider a three-year mortgage, which offers an attractive blend of low rates and security against interest rate surges. Three-year mortgage typically go for around 3.39 per cent on a fully discounted basis, but he knew of one small lender offering 2.9 per cent through the mortgage broker channel.
The case for going with a five-year fixed rate is that rates are very cheap by historical standards. Rates were a little bit lower last spring, but they're not as high as they were a month or two ago thanks to a pullback in bond yields that has trickled down to fixed-rate mortgages.
Mr. Siegle said over half of his firm's clients are locking into a fixed-rate mortgage right now. "You can't ever time the bottom of the market, but are these good rates that you can be comfortable with? A lot of people are saying, 'yeah, they are.' "
Bank of Canada expected to keep rates at record low
Paul Vieira, Financial Post Published: Tuesday, September 08, 2009
OTTAWA -- Analysts appear to be unanimous in believing the Bank of Canada will hold its record-low policy rate steady at its meeting Thursday, and maintain its commitment to keep the rate at 0.25% until June 2010.
The only item to look for in the pending rate statement, they indicate, is any change in nuance or tone, and possibly further concern about the rise of the Canadian dollar.
"The fact that the major economic data has largely evolved in line with the Bank of Canada's forecasts suggests (the central bank) is likely to reiterate its conditional statement to keep the overnight rate at 0.25% until the end of the second quarter of 2010," said Charmaine Buskas, senior economics strategist with TD Securities.
"And with no expected change to the overnight rate, all the focus will be on the nuances in the statement. It is likely to be very similar to the July 21 statement."
For the record, 21 economists in a Bloomberg News survey anticipate no change in the Bank of Canada rate, nor do the 11 members of the C.D. Howe Institute's monetary policy council.
The C.D. Howe said the Bank of Canada should stick to its mid-2010 commitment, adding that growth prospects remain uncertain as council members questioned how sustainable Canadian exports growth abroad will be, with "the dependence of U.S. and Chinese growth on government stimulus being a particular point of concern."
CMHC expects housing market to rebound strongly this year and next
Financial Post Published: Friday, September 04, 2009
Canada's housing market will rebound strongly in the second half of this year and into 2010, the federal housing agency said yesterday. Housing starts will reach 141,900 this year and increase to 150,300 for 2010, said Canada
Mortgage and Housing Corp. "Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction," CMHC said.
Bob Dugan, CMHC's chief economist, said, "Economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year. In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen."
Housing activity on brink of rebound, Canada Mortgage and Housing says
Canada's national housing agency predicts home construction to make a comeback in the second half of this year and into 2010, however economists say it could be a long time before we see the same building frenzy that has dominated this decade.
Canada Mortgage and Housing Corp. said Thursday it believes housing starts will hit 141,900, of which 68,400 will be single-family detached homes and 73,500 multiple-housing units, such as condos.
CMHC chief economist Bob Dugan said economic uncertainty and lower employment tempered new-housing construction in the first half of this year."In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen," he said in releasing the agency's third-quarter outlook.CMHC says improving activity on the resale market and lower inventory levels in both the new-and existing-home markets should prompt builders to increase residential construction.CMHC predicts overall starts to reach 150,300 in 2010.That compares to 211,056 housing starts recorded in 2008, of which 93,202 were single-family and 117,854 were multiple-housing units.Annual housing starts have surpassed the 200,000 mark every year since 2002.
However, CIBC World Markets economist Benjamin Tal believes the recovery in housing starts will be much slower."I think those number are a bit on the high side," he said, predicting a "not very weak, but not very strong" recovery of about 140,000 units in 2010.Tall also believes housing starts won't surpass 200,000 annually again for quite some time."We simply can't justify it. We don't have the demand," Tal said.The new normal will be about 170,000 to 180,000 starts annually, which we could hit by 2011, Tal said.Slower population growth and higher costs for new homes after provincial sales taxes are harmonized with the GST in provinces such as Ontario and B.C. next year will soften near-term growth in new home construction, Tal said.
Scotiabank economist Adrienne Warren also sees a slow recovery in new home building due to oversupply in some major markets, particularly in the condominium sector.But Warren said the CMHC forecast is yet another sign Canada's real estate market is on the rebound, and performing better than previously thought."It reaffirms that the market is far exceeding expectations across the board," Warren said.
CMHC also said Thursday it expects total sales on the Multiple Listing Service (MLS) to hit 420,700 in 2009 compared with 433,990 in 2008.That forecast is slightly higher than the Canadian Real Estate Association's recently revised 2009 resale forecast of 432,000 units.CREA boosted its outlook last week, saying it expects resale activity to drop by 0.4 per cent in 2009 versus 2008. That's better than its previous forecast of a 14.7 per cent drop year-over-year.
CHMC said the average price of a home across Canada last year was $303,607 and is expected to fall slightly to $301,400 in 2009, before climbing to $306,300 in 2010.
Warren predicts 2009 sales and prices will be on par with last year's levels."By and large we are looking at matching last year's levels, and holding steady on average, which is far from what anyone expected a few months ago," she said.She expects a "modest pickup" in sales in 2010."We will be looking at more of a balanced market."
Meantime, sales of existing homes rose in major centres across Canada in August compared to the month before.In the Greater Toronto Area, sales were up 27 per cent last month to 8,035 units compared to August 2008. The average price was $387,921, up by six per cent compared to the same month last year.Year-to-date sales in the Toronto area were 58,421 were up two per cent compared to the first eight months of 2008, the Toronto Real Estate Board reported this week. The average price of $385,978 was up by less than one-half of one per cent.
In Greater Vancouver, residential property sales increased 119.5 per cent in August to 3,441 compared to 1,568 in August 2008, according to the The Real Estate Board of Greater Vancouver.It said prices were down 1.1 per cent to $539,600 in August compared to the same month last year, but up 11.4 per cent from the start of the year.
ROB CARRICK
September 15, 2009
It was a little less than a year ago that the global financial crisis began to hit home, which is to say that mortgage rates spiked higher.
Now, the cost of mortgages is coming down. If you're buying a home or renewing a mortgage, it's time to review your options.
Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate mortgages. For the first time in almost a year, it's possible to get a variable-rate mortgage at the prime rate used by most major financial institutions, which is currently 2.25 per cent.
Pre-crisis, variable-rate mortgages came with discounts that ranged from 0.75 percentage points to as much as 0.9 points off prime. By late last fall, crisis conditions prompted lenders to start charging prime plus a full percentage point or more. Now, some lenders are starting to unwind their crisis-rate premiums.
"Variable-rate mortgages are all over the map right now," said Gary Siegle, regional manager with the mortgage brokerage firm Invis Inc. in Calgary. "We're seeing them right in the area of prime with some lenders."
An example of a variable-rate mortgage at prime: ResMor Trust, a small player that deals through mortgage brokers, is offering four-year variable-rate mortgages at prime in all provinces except Quebec. The catch: You have to have your mortgage approved by Sept. 30 and close the purchase within 45 days.
Can variable-rate mortgages fall back to their pre-crisis lows any time soon?
"Definitely, 100 per cent, no," said Robert McLister, a mortgage broker and author of the Canadian Mortgage Trends blog (canadianmortgagetrends.com). "Could they get a little below prime? Definitely."
Okay, it's strategy time. With prime at 2.25 per cent and fully discounted five-year fixed-rate mortgages going for something in the area of 3.9 to 4.1 per cent, you're got some thinking to do if you're buying a home or renewing a mortgage.
The variable rate looks tempting. Sure, the prime is going to rise in the medium term, but it's expected to stay put until next spring at least. Even when prime does move higher, it will have to increase by roughly 1.75 percentage points to get to where today's five-year mortgages are.
"The risk is obviously that rates go up a lot more," Mr. McLister warned. "Rates went down four percentage points from December, 2007, through April, 2009. They could easily go up four - why not?"
Variable-rate mortgages allow you to lock into a fixed-rate mortgage, so there's no reason why you have to ride interest rates all the way up. Still, you have to recognize that fixed-rate mortgages could be significantly more expensive by the time you decide to lock in.
An academic study of rates between 1950 and 2007 found variable-rate mortgages were the money-saving choice over five-year fixed-rate mortgages 89 per cent of the time. If you're willing to ride rates higher for a while in hopes of longer-term savings on interest costs, then consider a possible approach suggested by Mr. McLister.
Instead of arranging a variable-rate mortgage now, go for a one-year fixed-rate mortgage. Then, when you're renewing in one year's time, you'll move into a variable-rate mortgage that will ideally have a rate that is discounted below prime.
Fully discounted one-year closed mortgages today go for about 2.55 per cent, so you're not paying much of a penalty at all compared with what variable-rate mortgages are pegged at right now.
Another suggestion from Mr. McLister is to consider a three-year mortgage, which offers an attractive blend of low rates and security against interest rate surges. Three-year mortgage typically go for around 3.39 per cent on a fully discounted basis, but he knew of one small lender offering 2.9 per cent through the mortgage broker channel.
The case for going with a five-year fixed rate is that rates are very cheap by historical standards. Rates were a little bit lower last spring, but they're not as high as they were a month or two ago thanks to a pullback in bond yields that has trickled down to fixed-rate mortgages.
Mr. Siegle said over half of his firm's clients are locking into a fixed-rate mortgage right now. "You can't ever time the bottom of the market, but are these good rates that you can be comfortable with? A lot of people are saying, 'yeah, they are.' "
Bank of Canada expected to keep rates at record low
Paul Vieira, Financial Post Published: Tuesday, September 08, 2009
OTTAWA -- Analysts appear to be unanimous in believing the Bank of Canada will hold its record-low policy rate steady at its meeting Thursday, and maintain its commitment to keep the rate at 0.25% until June 2010.
The only item to look for in the pending rate statement, they indicate, is any change in nuance or tone, and possibly further concern about the rise of the Canadian dollar.
"The fact that the major economic data has largely evolved in line with the Bank of Canada's forecasts suggests (the central bank) is likely to reiterate its conditional statement to keep the overnight rate at 0.25% until the end of the second quarter of 2010," said Charmaine Buskas, senior economics strategist with TD Securities.
"And with no expected change to the overnight rate, all the focus will be on the nuances in the statement. It is likely to be very similar to the July 21 statement."
For the record, 21 economists in a Bloomberg News survey anticipate no change in the Bank of Canada rate, nor do the 11 members of the C.D. Howe Institute's monetary policy council.
The C.D. Howe said the Bank of Canada should stick to its mid-2010 commitment, adding that growth prospects remain uncertain as council members questioned how sustainable Canadian exports growth abroad will be, with "the dependence of U.S. and Chinese growth on government stimulus being a particular point of concern."
CMHC expects housing market to rebound strongly this year and next
Financial Post Published: Friday, September 04, 2009
Canada's housing market will rebound strongly in the second half of this year and into 2010, the federal housing agency said yesterday. Housing starts will reach 141,900 this year and increase to 150,300 for 2010, said Canada
Mortgage and Housing Corp. "Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction," CMHC said.
Bob Dugan, CMHC's chief economist, said, "Economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year. In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen."
Housing activity on brink of rebound, Canada Mortgage and Housing says
Canada's national housing agency predicts home construction to make a comeback in the second half of this year and into 2010, however economists say it could be a long time before we see the same building frenzy that has dominated this decade.
Canada Mortgage and Housing Corp. said Thursday it believes housing starts will hit 141,900, of which 68,400 will be single-family detached homes and 73,500 multiple-housing units, such as condos.
CMHC chief economist Bob Dugan said economic uncertainty and lower employment tempered new-housing construction in the first half of this year."In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen," he said in releasing the agency's third-quarter outlook.CMHC says improving activity on the resale market and lower inventory levels in both the new-and existing-home markets should prompt builders to increase residential construction.CMHC predicts overall starts to reach 150,300 in 2010.That compares to 211,056 housing starts recorded in 2008, of which 93,202 were single-family and 117,854 were multiple-housing units.Annual housing starts have surpassed the 200,000 mark every year since 2002.
However, CIBC World Markets economist Benjamin Tal believes the recovery in housing starts will be much slower."I think those number are a bit on the high side," he said, predicting a "not very weak, but not very strong" recovery of about 140,000 units in 2010.Tall also believes housing starts won't surpass 200,000 annually again for quite some time."We simply can't justify it. We don't have the demand," Tal said.The new normal will be about 170,000 to 180,000 starts annually, which we could hit by 2011, Tal said.Slower population growth and higher costs for new homes after provincial sales taxes are harmonized with the GST in provinces such as Ontario and B.C. next year will soften near-term growth in new home construction, Tal said.
Scotiabank economist Adrienne Warren also sees a slow recovery in new home building due to oversupply in some major markets, particularly in the condominium sector.But Warren said the CMHC forecast is yet another sign Canada's real estate market is on the rebound, and performing better than previously thought."It reaffirms that the market is far exceeding expectations across the board," Warren said.
CMHC also said Thursday it expects total sales on the Multiple Listing Service (MLS) to hit 420,700 in 2009 compared with 433,990 in 2008.That forecast is slightly higher than the Canadian Real Estate Association's recently revised 2009 resale forecast of 432,000 units.CREA boosted its outlook last week, saying it expects resale activity to drop by 0.4 per cent in 2009 versus 2008. That's better than its previous forecast of a 14.7 per cent drop year-over-year.
CHMC said the average price of a home across Canada last year was $303,607 and is expected to fall slightly to $301,400 in 2009, before climbing to $306,300 in 2010.
Warren predicts 2009 sales and prices will be on par with last year's levels."By and large we are looking at matching last year's levels, and holding steady on average, which is far from what anyone expected a few months ago," she said.She expects a "modest pickup" in sales in 2010."We will be looking at more of a balanced market."
Meantime, sales of existing homes rose in major centres across Canada in August compared to the month before.In the Greater Toronto Area, sales were up 27 per cent last month to 8,035 units compared to August 2008. The average price was $387,921, up by six per cent compared to the same month last year.Year-to-date sales in the Toronto area were 58,421 were up two per cent compared to the first eight months of 2008, the Toronto Real Estate Board reported this week. The average price of $385,978 was up by less than one-half of one per cent.
In Greater Vancouver, residential property sales increased 119.5 per cent in August to 3,441 compared to 1,568 in August 2008, according to the The Real Estate Board of Greater Vancouver.It said prices were down 1.1 per cent to $539,600 in August compared to the same month last year, but up 11.4 per cent from the start of the year.
Friday, October 2, 2009
Mortgage Rates as of Oct 2/09
1 year Bank posted rate 3.70%...my rate 2.55%
2 years Bank posted rate 3.85%...my rate 2.85%
3 years Bank posted rate 4.35%...my rate 3.35%
4 years Bank posted rate 4.94%... my rate 3.64%
5 years Bank posted rate 5.49%...my rate 3.84%
7 years Bank posted rate 6.60%...my rate 4.35%
10 years Bank posted rate 6.75%..my rate 5.30%
Bank Prime 2.25%
Variable Bank posted rate2.45%..my rate 2.25%
* rates subject to change without notice
*quick close discounts available
2 years Bank posted rate 3.85%...my rate 2.85%
3 years Bank posted rate 4.35%...my rate 3.35%
4 years Bank posted rate 4.94%... my rate 3.64%
5 years Bank posted rate 5.49%...my rate 3.84%
7 years Bank posted rate 6.60%...my rate 4.35%
10 years Bank posted rate 6.75%..my rate 5.30%
Bank Prime 2.25%
Variable Bank posted rate2.45%..my rate 2.25%
* rates subject to change without notice
*quick close discounts available
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