The Grand on King George features an iconic tower, reaching 46-stories into the sky — perched on a glass-encased podium.
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Best Things to do on the Family Day Long Weekend in 2021
Looking for something to do on the BC Family Day Long Weekend in February in Vancouver? There are so many fun activities to choose from.
In 2021 the Family Day Long Weekend takes place February 13th to 15th. To learn about top Family Day activities this year, continue reading.
NOTE: Because of COVID-19, many special activities that take place most years won’t likely be possible in 2021. Exact details, however, are to be confirmed.
Some Vancouver Family Day Events:
- Fan Expo – a Cosplay/Comi-Con-type event at the Vancouver Convention Centre all weekend that is fun for both families and adult comic and superhero fans. (Postponed until later in the year in 2021.)
- Museum of Vancouver – free admission on the holiday Monday between 10 and 5 pm. (To be confirmed for 2021.)
- Maritime Museum – free admission at the museum at Vanier Park from 12 until 4 pm. (To be confirmed for 2021.)
- Soar Over Taiwan – the multi-sensory film at FlyOver Canada showed at Canada Place all weekend. It’s more of a Lunar New Year-themed event than a specifically “Family Day” event. (To be confirmed for 2021.)
- BC Sports Hall of Fame – admission to the museum was free on the holiday Monday from 11 am until 3 pm. (To be confirmed for 2021.)
Some Burnaby Family Day Events:
Burnaby Rec Centres – a variety of activities took place at municipal venues throughout Burnaby on Monday (February 17, 2020) including the following:
- Family Day Winter Festival – at the Bill Copeland Sports Complex at 3676 Kensington Avenue from 9:00 am to 1:30 pm. Activities included a pancake breakfast (by minimum $5 donation), skating for $2 (including skates and helmet rental), live entertainment, face painting and craft activities. (To be confirmed for 2021.)
- Family Gym Drop-in – at the Bonsor Recreation Complex at 6550 Bonsor Avenue children and their parents in the afternoon. Cost was a Loonie per person for some activities (e.g., Zumba dancing and family gym drop in) but regular rates for other things (like swimming and badminton). (To be confirmed for 2021.)
- Family Day Fun & Games – for all ages at Cameron Recreation Complex at 9523 Cameron Street. Activities most years include things like an imagination playground, table games, arts and crafts and more. 2020 activities ran from 11:00 am to 1:00 pm. Advanced registration was recommended. (To be confirmed for 2021.)
- Family Recreation Time – at Edmonds Community Centre at 7433 Edmonds Street from 9:00 am until 6:30 pm. Various activities ran at different times throughout the day. Some were free and others cost a loonie. Family gym drop-in activities were free and ran from 9:00 am until noon. Zumba dancing cost $1 per participant and went from 11:45 until 12:30. Family soccer and badminton games took place in the afternoon and were free. (To be confirmed for 2021.)
- Family Day Toonie Skate – at the Kensington Recreation Complex at 6159 Curtis Street from 6:00 until 8:00 pm. Cost was $2 per person and included equipment rental. (To be confirmed for 2021.)
Some North Shore Family Day Events:
- Grouse Mountain – a couple of years ago Grouse offered 50% off admission to the mountain for fun in the snow on the Holiday Monday. In 2019, instead, access to the mountain cost $89.95 for a family of four, or $139.95 for ski tickets, but only for the holiday Monday. In 2020 it appears that there were no discounted rates for access to the resort at all on the Family Day weekend (or at least not when we checked). There were special activities at Grouse Mountain on the Holiday Monday, however, including the following (but you still had to pay for general admission):
- Charity Pancake Breakfast (by minimum $5 donation).
- Complimentary Snowshoe Tours
- Other regular activities including skiing, snowboarding, snowshoeing, ice skating, sliding zone sliding, sleigh rides and the Magical Light Walk.
- Mount Seymour – kids skied for free after 2:30 pm on the Friday, Saturday, Sunday and Monday with a paying adult (maximum of 2 free kids per paying adult). (To be confirmed for 2021.)
- Cypress Mountain – a couple of years ago Cypress used to offer 50% off Skooter and Child ski, snowshoe, cross-country and tubing passes starting at 5 pm on the Friday and then all day on the Saturday, Sunday and Monday. It appears that Cypress did not offer discounted tickets in 2020. There were various events happening on the mountain on the Friday through to the Monday, however, including fireworks blasting off at 7:00 pm on the Friday night. (To be confirmed for 2021.)
Some Fraser Valley Family Day Events:
In the Fraser Valley, there are events taking place in both Chilliwack and Abbotsford.
- Fort Langley Historic Half Marathon – running races between 1 and 21 km in length in Fort Langley on Sunday, February 16, 2020. (Postponed in 2021 until a date that’s still to be determined.)
- Pet Lover Show – a domestic animal trade show at the Abbotsford Tradex Centre at 1190 Cornell Street on February 15 and 16 in 2020. Expect to see lots of cats, dogs and other pets. (Postponed in 2021 until a date that’s still to be determined.)
- Spirit of the People Family Day Powwow – an Indigenous event in Chilliwack featuring dancing, drumming and other cultural activities at Chilliwack Secondary School at 46363 Yale Road. The event took place on the Saturday and Sunday of February 15 and 16, 2020, (so not on the holiday Monday). (To be confirmed for 2021.)
Some Richmond Family Day Events:
- Richmond Children’s Art Festival – various imagination stations and performances both indoors and outdoors at the Richmond Cultural Centre at 7700 Minoru Gate on Monday, February 17, 2020. General admission was $5. Creativity Classes cost $15 and required preregistration. (Scheduled for February 15th in 2021, but likely in a modified format.)
- Family Day at the Cannery – the cannery was open all weekend and on the Holiday Monday there were canning line machine demonstrations and tours of the facility at set times throughout the day. Free for children ages 17 and under. (To be confirmed for 2021.)
- A wide variety of other activities take place in Richmond on the Family Day Long Weekend. For a comprehensive list that includes events at other community centres and various tourist attractions, see the City of Richmond‘s website.
Some Surrey Family Day Events:
- Family Day at Stewart Farm – free crafts, games and tours of the farmhouse at 13723 Crescent Road in South Surrey on the Monday from 12 until 3 pm. (To be confirmed for 2021.)
- Family Day in Surrey – free family-friendly activities on the Monday at the following locations: Chuck Bailey Recreation Centre, Cloverdale Recreation Centre, Fleetwood Community Centre, Newton Recreation Centre, Guildford Recreation Centre and South Surrey Recreation Centre. (To be confirmed for 2021.)
Some New Westminister Family Day Events:
Family Day in New Westminster – free and almost free family-friendly activities took place at the following locations most years (with exact details to be confirmed):
- Queensborough Community Centre – at 920 Ewen Avenue on the stat holiday. Activities here in the past have included a bouncy castle and crafts, plus free admission to the fitness centre. (To be confirmed for 2021.)
- Centennial Community Centre – at 65 East Sixth Avenue on the Holiday Monday. Free activities in past years have included a family “drop in time” at the gym, crafts and access to various fitness activities at different times. (To be confirmed for 2021.)
- Moody Park Arena – free public skating and skate rentals at 701 Eighth Avenue have happened on the Monday in past years. (To be confirmed for 2021.)
- Canada Games Pool – free fitness centre access and public swimming have been offered on the Monday in the past at 65 East Sixth Avenue venue. Activities in the pool have included duck races down the water slide and other family-friendly activities. (To be confirmed for 2021.)
- Family Fun Zone at Anvil Centre – free live entertainment, crafts and games at 777 Columbia Street between 11 am and 3 pm on the Monday in 2020. (To be confirmed for 2021.)
Some Maple Ridge Family Day Events:
Special Family Day Weekend activities also included the following in Maple Ridge:
- Family Day in Maple Ridge – free family-friendly activities at the ACTS Art Centre on Monday, February 17th, between 11:00 am and 3:00 pm.
Other Great Places for Families:
- Check out Vancouver’s top indoor activities which are great places to visit any time of year, especially if it’s a rainy weekend in February.
- The skiing this year has been pretty good. If we continue to get new snow, a fabulous place to spend the holiday weekend is up at the Lower Mainland’s ski hills.
- If the weather is good then the Family Day long weekend can be an excellent time to enjoy time outdoors. Check out Vancouver’s best places in parks and nature for a list of the best places to go, or take a Frisbee – not your swimsuit – and spend the day hanging out at one of Vancouver’s best beaches.
- Also, if the weather’s good and you’re looking for a bit of exercise, check out Vancouver’s best places to walk, jog or cycle.
For the full list of events in each region, click here
A Top Reason People Want to Move: To be Closer to Family
Written by: Buffini & Co.
What Gets in the Way of Connecting with Loved Ones?
- Life gets busy
- Financial constraints
- Work or health
- A vast country with multiple time zones
- “Let’s wait for the right time.
Let’s Strengthen Our Ties!
- Visualize your ideal family outcome
- Find creative ways to always stay connected
- Be realisic with your time and resources
- Don’t procrastinate; brainstorm ways to meet in the middle
- Let FOMO guide you!
Ways to Stay in Touch
- Write specific goals for your ultimate family outcome
- Use technology to schedule a video chat
- Send a handwritten card or small gift
- Use or share your air miles for visits
- Invite everyone to a family get-together
Benefits of Living Near Loved Ones
- Assistance with child or elder care
- Stronger family bonds
- Longer life expectancy
Canadian Home Sales Continued to Rise in January as Markets Tightened
Written by: Dr. Sherry Cooper & Associates
CANADIAN HOME SALES CONTINUED THEIR UPWARD TREND IN JANUARY AS PRICES FELL MODESTLY
The Canadian Real Estate Association announced today that home sales over the last two months show signs of recovery. National sales were up 3.7% between December 2023 and January 2024, building on the 7.9% gain in December. The chart below shows that despite the two-month rise, sales remain 9% below their ten-year average. According to Shaun Cathcart, CREA’s Senior Economist, “Sales are up, market conditions have tightened quite a bit, and there has been anecdotal evidence of renewed competition among buyers; however, in areas where sales have shot up most over the last two months, prices are still trending lower. Taken together, these trends suggest a market that is starting to turn a corner but is still working through the weakness of the last two years.”
National gains were once again led by the Greater Toronto Area (GTA), Hamilton-Burlington, Montreal, Greater Vancouver and the Fraser Valley, Calgary, and most markets in Ontario’s Greater Golden Horseshoe and cottage country.
The actual (not seasonally adjusted) number of transactions was 22% above January 2023, the most significant year-over-year gain since May 2021. While that sounds like a resounding rise in activity, January 2023 posted the weakest transaction level in nearly twenty years.
New Listings
The number of newly listed homes increased 1.5% month-over-month in January, although it remains close to the lowest level since last June.
“The market has been showing some early signs of life over the last couple of months, probably no surprise given how much pent-up demand is out there,” said Larry Cerqua, Chair of CREA.
With sales up by more than new listings in January, the national sales-to-new listings ratio tightened further to 58.8% compared to under 50% just three months earlier. The long-term average for the national sales-to-new listings ratio is 55%. A sales-to-new listings ratio between 45% and 65% is generally consistent with balanced housing market conditions, with readings above and below this range indicating sellers’ and buyers’ markets, respectively.
There were 3.7 months of inventory on a national basis at the end of January 2024, down from 3.8 months at the end of December and 4.1 months at the end of November. The long-term average is about five months of inventory.
Home Prices
The Aggregate Composite MLS® Home Price Index (HPI) fell by 1.2% month-over-month in January 2024, adding to the 1.1% price decline in December.
Price descents of late have been predominantly in Ontario markets, particularly the Greater Golden Horseshoe and, to a lesser extent, British Columbia. Elsewhere in Canada, prices are mostly holding firm or, in some cases (Alberta and Newfoundland and Labrador), continuing to rise.
The Aggregate Composite MLS® HPI was up 0.4% year-over-year in January 2024, similar to readings over the past six months.
Bottom Line
Sales in December and January generally run at about half the peak spring season pace. That could be especially true this year, with interest rates likely to begin falling by mid-year. A strong housing rebound is coming. Housing markets have bottomed, buyer sentiment is improving and fixed mortgage rates have started declining.
Housing markets in Toronto, Vancouver and Montreal are relatively balanced again, and with the spring season, we will see a rise in new listings.
In other news, the inflation data released yesterday in the US were higher than expected, pushing rate-cut forecasts further out. With the strength in the US economy, the 5-year government of Canada bond yield has quietly risen more than 50 basis points this year.
Canada’s Housing Minister, Sean Fraser, said he expects the fall in interest rates this year to encourage builders to ramp up their activity, helping to alleviate some of the country’s crunched housing supply. At a news conference yesterday, the minister said, “My expectation is if we see a dip in interest rates over the course of this year, a lot of the developers that I’ve spoken to will start those projects that are marginal today.”
Sean Fraser, asked whether he’s concerned that Bank of Canada rate cuts will unleash pent-up demand and higher home prices, said lower borrowing costs should also lead to an increase in supply. Fraser said whatever happens with rates, the government’s course of action will remain the same. “We need to do everything we can as quickly as we can to build as many homes as we can. And that’s going to be true today and six months from now, regardless of what may happen in the interest rate environment that we’re dealing with.”
At a news conference last week, Bank of Canada Governor Tiff Macklem said that while he’s heard from developers who’ve indicated higher rates are delaying projects, lowering rates would have a more significant impact on demand.
“It’s very clear in the data that the effects of interest rates on demand are much bigger than those on supply,” he told reporters.
What’s Ahead for the Housing Market
Written by: Buffini & Co.
Due to “higher-for-longer” interest rates and lack of inventory, home sales are projected to rise only slightly throughout most of the country.
The annual national average price has been in the $680,000 to $700,000 range for the past three years.
Average Interest Rates
- 5-Year Fixed Mortgage
- Interest rates fluctuate, but over the last three decades they’ve hovered in the 5-10% range.
- 60% of homeowners will need to renew their mortgages in the next three years.
Canada! A Great Place to Live
Consistently ranked among the top countries to live, Canada is known for its high quality of living and strong job market. It’s a great place to raise a family and own a home.
Top 10 Cities on the Global Liveability Index 2023
- #5 Vancouver
- #7 Calgary
- #9 Toronto
Our Top Reasons for Moving
- Moving closer to family
- Bigger or better housing
- A more desirable neighbourhood
- Form own household
- Change of work or life
December Jobs Report In Canada Not as Weak as Headline Suggests
Written by: Dr. Sherry Cooper & Associates
Brisk Wage Gains in December Will Keep The BOC Watchful
Today’s StatsCanada Labour Force Survey for December was a mixed bag and far more robust than the weak headline figure suggests. Total employment in Canada barely budged, rising by a mere 100 jobs in the final month of last year. However, the labour force participation rate fell, leaving the unemployment rate at 5.8%. Most economists had been expecting considerably more robust job growth and a rising unemployment rate.
Canada has one of the world’s fastest-growing populations owing to high immigration levels. However, employment growth has been slower than labour force growth in recent months.
The employment rate–the proportion of the working-age population with jobs–trended downward in 2023 among core-aged men and women (aged 25 to 54).
The participation rate—the number of employed and unemployed people as a percentage of the population aged 15 and older—fell in December (-0.2 percentage points) to 65.4%. This was down from a recent peak of 65.7% in June. Most of the decline from June to December was attributable to a drop in the youth participation rate, which decreased 2.1 percentage points to 63.5% over the period. On a year-over-year basis, the labour force participation rate fell 3.3 percentage points to 85.4% among youth not attending school. At the same time, it declined 1.0 percentage points to 46.4% among youth who were students (not seasonally adjusted). The participation rate held steady among those in the core-aged group (88.7%) and people aged 55 years and older (36.9%), compared with June 2023 and December 2022.
Total hours worked rose 0.4% month-over-month in December and 1.7% from a year earlier. That followed a 0.7% month-over-month drop in November.
Employment in professional, scientific and technical services increased by 46,000 (+2.4%) in December, following little change in the three previous months. This was the second monthly increase in the industry in 2023, the first having been a rise of 52,000 in August. On a year-over-year basis, employment in this industry was up by 78,000 (+4.2%) in December.
Following four months of little change, employment in health care and social assistance rose by 16,000 (+0.6%) in December, building on increases in June (+21,000) and July (+25,000). On a year-over-year basis, health care and social assistance employment increased by 124,000 (+4.8%) in December. According to the most recent data from the Job Vacancy and Wage Survey, the job vacancy rate in healthcare and social assistance was 5.3% in October 2023, down from a peak of 6.3% in April but still the highest rate across all sectors. In December, employment fell in wholesale and retail trade (-21,000; -0.7%) for a third consecutive month. From August to December, work in the industry decreased by 80,000 (-2.7%). This followed gains from December 2022 to August 2023, when employment increased by 108,000 (+3.7%).
Employment rose in British Columbia (+18,000; +0.6%), Nova Scotia (+6,300; +1.3%), Saskatchewan (+4,800; +0.8%), and Newfoundland and Labrador (+2,400; +1.0%) in December, while it declined in Ontario (-48,000; -0.6%). Employment in other provinces was primarily unchanged.
The most concerning thing for the Bank of Canada was the acceleration in wage inflation to 5.4% y/y last month, compared to 4.8% in the prior two months. With Canadian productivity falling, this is particularly troublesome for the overall inflation outlook. For this reason, the Bank of Canada will continue to be cautious.
Bottom Line
The next Bank of Canada confab is on January 24, before which we will see the December inflation data on January 16. Given the mixed labour force survey, particularly the wage spike, the Bank of Canada will remain cautious. They will wait until inflation is sustained meaningfully before 3% before cutting the overnight policy rate for the first time this cycle.
Mansour Group Community Connect
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Canadian Housing Markets Bottoming
Written by: Dr. Sherry Cooper & Associates
Housing Markets Preparing for a 2024 Rebound
Before we get into the details of the November housing market data released this morning by the Canadian Real Estate Association (CREA), big positive news for housing occurred yesterday. The US Federal Reserve gave its clearest signal yet that its historic policy tightening campaign is over by projecting more aggressive interest-rate cuts in 2024. This ignited one of the biggest post-meeting rallies in bonds and stocks in recent memory. Global shares spiked higher. Short-term Treasuries posted their best day since March, while world currencies surged against the US dollar and corporate bonds rallied. Canadian markets followed suit. If anything, Canada is far more interest-sensitive than the US, and our economy is far weaker.
Monthly mortgage payments relative to after-tax income are far higher in Canada than in the US, even more so given the tax deductibility of mortgage interest and property taxes south of the border. The US economy grew by a whopping 5.2% in the third quarter compared to a decline of 1.1% in Canada. Therefore, the Bank of Canada will likely cut interest rates sooner and more aggressively than in the US, improving housing affordability.
The CREA data for November showed a bottoming housing market. Home sales recorded over Canadian MLS® Systems edged down by 0.9% from October to November 2023, the smallest decline since July.
New Listings
Sellers move to the sidelines as well. The number of newly listed homes fell 1.8% month-over-month in November. This followed a 2.2% decline in October.
With new listings down by more than sales in November, the national sales-to-new listings ratio tightened slightly to 49.8% compared to 49.4% in October. It was the first time this measure has increased since April. The long-term average for the national sales-to-new listings ratio is 55.1%.
There were 4.2 months of inventory nationally at the end of November 2023, up only slightly from 4.1 months at the end of October. As such, this measure also looks to be stabilizing and is still almost a full month below its long-term average of nearly five months of inventory.
We are definitely in a buyers’ market.
Home Prices
The Aggregate Composite MLS® Home Price Index (HPI) declined by 1.1% month-over-month in November 2023, reflecting softer market conditions since the end of the summer. Prices often react with a slight lag, so it will be interesting to see if month-over-month declines get smaller or stop getting larger in December in response to a stabilizing demand-supply balance.
While price declines remain mainly an Ontario phenomenon, home prices are now softening in the Fraser Valley, Winnipeg, and Halifax. Elsewhere in Canada, prices are mostly holding firm or, in some cases (Alberta, Saskatchewan, New Brunswick, Price Edward Island, Newfoundland and Labrador), continuing to climb. The Aggregate Composite MLS® HPI was up 0.6% on a year-over-year basis.
Bottom Line
The Bank of Canada policymakers will meet again on January 24th. While it will likely be several months before the Bank begins to cut the policy rate, market-driven interest rates have fallen sharply. Fixed mortgage rates have also come down but more moderately. I expect to start easing monetary policy in the spring, taking the overnight rate down by roughly 100 bps by yearend 2024. Housing activity will strengthen in 2024 and 2025, although the economy will be burdened by a substantial rise in monthly mortgage payments as many renewals or refinancings rise, peaking in 2026.
THE BANK OF CANADA HELD RATES STEADY AND TOOK A MORE NEUTRAL TONE
Written by: Dr. Sherry Cooper & Associates
It was widely expected that the Bank of Canada would maintain its key policy rate at 5% for the third consecutive time. It will continue to sell government securities (quantitative tightening) to normalize its balance sheet. Market participants weighed and measured each word of the BoC press release and assessed that the Bank took a less hawkish stance.
This time, the release said, “Higher interest rates are clearly restraining spending: consumption growth in the last two quarters was close to zero, and business investment has been volatile but essentially flat over the past year. Exports and inventory adjustment subtracted from GDP growth in the third quarter, while government spending and new home construction provided a boost. The labour market continues to ease: job creation has been slower than labour force growth, job vacancies have declined further, and the unemployment rate has risen modestly. Even so, wages are still rising by 4-5%. Overall, these data and indicators for the fourth quarter suggest the economy is no longer in excess demand.”
At the prior meeting in late October, the Bank said that the labour market remained “on the tight side” but acknowledged today that it was loosening. Indeed, the October Monetary Policy Report suggested that the inflation rate would not hit its 2% target level until late 2025.
Today, the tone was much more optimistic, suggesting that policymakers are increasingly confident interest rates are restrictive enough to bring inflation back to the 2% target. Still, Bank officials want to see more progress on core inflation before it begins to ease. It said, “The Bank’s preferred measures of core inflation have been around 3½-4%, with the October data coming in towards the lower end of this range.”
The central bank focuses on “the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour” and remains resolute in restoring price stability.
Bottom Line
Bond yields peaked in early October and have fallen by nearly 100 basis points. This has led to reductions in fixed mortgage rates; however, those cuts have been far less than historical experience would have suggested, given the rally in 5-year government bonds.
Cuts in variable mortgage rates await a reduction in the overnight policy rate, which triggers a commensurate decline in the prime rate, which is currently stuck at 7.2%. I expect the BoC to begin cutting the policy rate by the middle of next year, taking it down a full percentage point to 4% by yearend.
Welcome to SkyLiving: A New Horizon of Luxury Living!
Mansour Real Estate Group along with Allure Ventures is excited to announce our latest community, SkyLiving. Read more about it below and feel free to call Mohamed at (604) 319-5827 if you have any questions.
Imagine waking up to a world where luxury and convenience are not just words but a way of life. Welcome to SkyLiving, nestled in the vibrant heart of Surrey City Centre, where every day is an opportunity to Dream Big and Live Bigger.
A Home That Reflects You
Designed by the acclaimed Christina Oberti Interior Design, SkyLiving offers residences that are more than just homes; they are reflections of your aspirations. With state-of-the-art appliances, sleek contemporary kitchens, built-in closet organizers, and efficient heating/cooling systems, we’ve crafted an unparalleled living experience tailored just for you.
A Community That Inspires
The magic of SkyLiving doesn’t stop at your doorstep. Our thoughtfully curated amenities are more than mere conveniences; they are extensions of your lifestyle. Whether it’s breaking a sweat in our state-of-the-art fitness centre or enjoying a serene sunset at the expansive outdoor SkyPark, SkyLiving is your playground for relaxation, socialization, and entertainment.
A Location That Connects
At SkyLiving, you are at the heart of it all. Dozens of retail and dining options await you, just a leisurely stroll away. Here, convenience isn’t just a feature; it’s a philosophy woven into the very fabric of SkyLiving.
A Design That’s Uniquely Yours
We understand that luxury is a journey, uniquely yours. That’s why we offer personalized design schemes that resonate with your individual taste. From the elegance of your kitchen and bathroom to the harmonious blend of materials and textures, every detail is meticulously curated to create a home that’s unmistakably you.
Visit www.SkyLiving.ca today and embark on a journey that redefines luxury living. At SkyLiving, we don’t just build homes; we craft dreams. Welcome to SkyLiving – where you can dare to Dream Big.
Benefits of Investing In Real Estate
Written By: Buffini & Co.
- Tax Incentives
- You may be eligible for certain tax breaks and deductions.
- Extra Income
- After your monthly expenses are deducted from the rental payment, there may be additional income left.
- Leverage Funds
- Real estate investments can be financed through mortgages and other financing options, allowing you to leverage your capital and amplify returns.
- Hedge Against Inflation
- Real estate historically keeps pace with inflation.
- Equity and Appreciation
- Real estate properties tend to appreciate in value over time, allowing investors to build equity and accumulate wealth.
- Portfolio Diversification
- Adding real estate to a portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk. It is also not affected by fluctuations in the stock market.
As with any investment, through research, careful planning and professional guidance are crucial to maximize returns and minimize risks. Always consult your trusted tax professional or financial advisor.
3 Terms to Know
Fair Market Value (FMV)
- The highest price available in an open and unrestricted market between informed and prudent parties, acting at arm’s length and under no compulsion to act, expressed in terms of cash.
Capitalization Rate
- This rate is determined by dividing the annual net operating income by the current market property value, converted to a percentage. This number will give you an estimate of how long it will take your investment to break even.
Return On Investment (ROI)
- Measures the profit you have made (or could make if you were to sell) in an investment. It is calculated by comparing the amount you have invested in the property, including the initial purchase price plus any further costs, to its current value.
Hawkish Hold By The Bank of Canada
Written By: Dr. Sherry Cooper & Associates
The Bank of Canada today held its target for the overnight rate at 5%, as was widely expected. The central bank continues to normalize its balance sheet through quantitative tightening, reducing its Government of Canada bonds holdings.
The Monetary Policy Report (MPR) detailed a slowdown in global economic growth “as past increases in policy rates and the recent surge in global bond yields weigh on demand.” Continued increases in longer-date bond yields reflect the stronger-than-expected growth in the US, where the Q3 economic growth rate, released tomorrow, is expected to be a whopping 5%. Ten-year yields in the US have risen to nearly 5%, boosting fixed mortgage rates in Canada.
Oil prices are higher than was assumed in the July MPR, and the war in Israel and Gaza is a new source of geopolitical uncertainty.
The Governing Council said that past increases in interest rates are slowing economic activity in Canada and relieving price pressures. “Consumption has been subdued, with softer demand for housing, durable goods and many services. Weaker demand and higher borrowing costs are weighing on business investment. The surge in Canada’s population is easing labour market pressures in some sectors while adding to housing demand and consumption. In the labour market, recent job gains have been below labour force growth, and job vacancies have continued to ease. However, the labour market remains on the tight side, and wage pressures persist. Overall, a range of indicators suggest that supply and demand in the economy are now approaching balance.”
Economic growth in Canada averaged 1% over the past year, and the Bank forecasts it will continue to be weak for the next year before increasing in late 2024 and through 2025. The Bank is not forecasting a recession over this period. “The near-term weakness in growth reflects both the broadening impact of past increases in interest rates and slower foreign demand. The subsequent pickup is driven by household spending as well as stronger exports and business investment in response to improving foreign demand. Spending by governments contributes materially to growth over the forecast horizon. Overall, the Bank expects the Canadian economy to grow by 1.2% this year, 0.9% in 2024 and 2.5% in 2025.”
The central bank highlighted the volatility of CPI inflation in recent months–at 2.8% in June,k 4.0% in August and 3.8% in September. “Higher interest rates are moderating inflation in many goods that people buy on credit, and this is spreading to services. Food inflation is easing from very high rates. However, in addition to elevated mortgage interest costs, inflation in rent and other housing costs remains high. Near-term inflation expectations and corporate pricing behaviour are normalizing only gradually, and wages are still growing around 4% to 5%. The Bank’s preferred measures of core inflation show little downward momentum.”
In today’s MPR, CPI is expected to average about 3.5% through the middle of next year before gradually falling to the 2% target level in 2025. “Inflation returns to target about the same time as in the July projection, but the near-term path is higher because of energy prices and ongoing persistence in core inflation.”
The hawkish tone of the final paragraph of today’s press release is noteworthy. The Bank does not want to boost interest-sensitive spending, such as housing and durable goods purchases, by assuring markets that its next move will be a rate cut. Instead, the Bank said, “Governing Council is concerned that progress towards price stability is slow and inflationary risks have increased, and is prepared to raise the policy rate further if needed. The Governing Council wants to see downward momentum in core inflation. It continues to be focused on the balance between demand and supply in the economy, inflation expectations, wage growth and corporate pricing behaviour. The Bank remains resolute in its commitment to restoring price stability for Canadians.”
Bottom Line
Nothing was surprising in today’s report. The slowdown in economic activity since late last year has dramatically reduced excess demand. The output gap–the difference between the actual growth in GDP and its potential growth at full employment–is essentially closed, suggesting that demand pressures have been easing. They had previously expected the output gap to close in early 2024.
Of concern to the Bank is that inflation remains above their 2% target in the face of increased global risks of higher inflation. Upside risks to inflation include elevated inflation expectations of households and businesses, growing extreme weather events, and heightened geopolitical uncertainties including the Israel-Hamas war.
Price gains in energy and shelter — upward pressures on inflation — are “anticipated to be partially offset by the easing of excess demand, weaker pressure from input costs and further disinflation in globally traded goods,” the Bank said.
“Ongoing excess supply in the economy moderates price inflation, helps ease inflation expectations and encourages businesses to gradually return to more normal pricing behaviour.”
Canada’s households are more indebted, on average, than their US counterparts and their shorter-duration mortgages roll over faster. That makes the Canadian economy more sensitive to higher rates and is one reason the Bank of Canada first declared a pause in January, well before the US Federal Reserve. The central bank’s next decision is due Dec. 6, after two releases of jobs data, October inflation numbers and third-quarter gross domestic product figures. I expect the Bank to pause rate hikes for the next six to nine months. When they finally begin to ease monetary policy, they will do so gradually, taking the overnight rate down to roughly 4% by the end of next year.
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