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Canadian inflation, as measured by the Consumer Price Index (CPI) rose by 0.7% in June year-over-year, up from a 0.4% decline in May. June saw the fastest rise in the CPI since March 2011. Prices rose in five of eight components year-over-year, with food and shelter prices driving the increase. Rents rebounded in June, rising 0.6% from the previous month, coinciding with the easing of some pandemic related restrictions and the warmer summer months. Mortgage interest costs continued to fall in June due to declining bond yields and the Bank of Canada's low policy rate set in March. Meanwhile, the Bank of Canada's three measures of trend inflation rose by 0.1 percentage points, averaging 1.7% in June.
Regionally, the CPI was positive in all provinces except for Prince Edward Island. In BC, CPI rose by 0.5%, following a 0.2% decline in May year-over-year. Prices for food, alcohol/tobacco/cannabis, and health and personal care continued to rise in June, while downward pressure on gas prices eased up as reopening measures had people using their vehicles more.
Prices for the hardest hit components are beginning to recover, but the rising numbers in COVID-19 cases in Canada and in the US, and the high unemployment rate will likely keep price pressures stunted. This will also likely leave the Bank of Canada's policy rate low.
For more information, please contact: Gino Pezzani.
I think we can all agree that 2020 brought unexpected challenges that continue to affect us. However, as the hot July afternoons transition into cooler August evenings, I sense we’re at a point where we can begin to look back on what the year has brought us as much as we can anticipate what lies ahead.
I got to thinking the other day on what a longer view of this year reveals. What if we glance back about 100 years instead of looking ahead by a few months? What did one short century do for us as a modern society?
On May 21, 1927, Charles Lindbergh flew across the vast Atlantic Ocean, landing his Spirit of Saint Louis in Paris, 33 hours after departing from New York. A century later we do have some extra precautions to take from lingering effects of the recent pandemic, but generally speaking, we can fly to another continent with little effort.
In November 1920, the first commercially licensed radio broadcast was heard from radio station KDKA in Pittsburgh, Pennsylvania. Today, we can hop in the car and turn on a radio, listen to cable music stations through independent providers or talk back to a podcast posted online for subscribers. One century brought us a world of music and news on invisible waves broadcast for anyone to hear. We can listen to the world.
Also in 1920, the 19th Amendment was passed, ensuring women the right to vote. Suddenly, the entire population had a voice in elected leadership and public policy. That’s a pretty powerful thought.
Fall is just around the corner, but I firmly believe the rest of this year is packed with possibility. What will historians look back and say we created in the summer of 2020? What can we do to change the world from where we are now?
Let’s make it an amazing month of invention, of exploration, of leaning in and having serious conversations with friends and family on how we can make our world a better place. It’s going to be a hot one out there!
I wish you the best as we build and rebuild our world together….
Your Real Estate/Mortgage Consultant For Life
What could you achieve if you didn’t place any limitations on yourself? Jazz pianist Art Tatum— called “the eighth wonder of the world” by Count Basie—is a perfect example of a man who knew no boundaries.
Though blind, Tatum expressed an interest in the piano as a youngster. He listened to the music of Fats Waller and Lee Sims on the radio for hours, hoping that someday he would be able to perform as well as they did. Of course, that meant he’d have to learn to play, but unfortunately, like many families in the 1920's, his had few resources to spend on music lessons. As Tatum neared adolescence, he devised his own method for learning the instrument.
He persuaded friends to escort him to a local jazz club, where he was given permission to sit at the player piano. As the music played, Tatum kept his fingers hovering lightly over the falling keys, feeling his way through the songs. He practiced late into the night, as often as he could—in spite of his age, his schoolwork, and his part-time job. Learning to play piano in this manner was difficult, but not just because he was blind.
What Tatum didn’t realize was that player piano rolls of that era were the result of two pianists playing together. He was learning to play with two hands what normally took four. As a result, he developed an incredible dexterity that enabled him to master the piano.
Even though this story starts in the 1920’s, we are still amazed by Art Tatum’s skill and innovation one hundred years later. Art was unaware of his limitations. He did not know he was attempting the impossible; he just did the impossible. If it's true that “necessity is the mother of invention,” then Art reminds us that not knowing something is sometimes the father of innovation.
It’s called “reattachment to work,” and it can take many forms. You might start your day by talking with your spouse or partner about what you’re going to do today, or cycling through your to-do list first thing in the morning, or giving yourself three concrete goals to accomplish as soon as you get to work.
This kind of planning can jump-start your brain and help you focus on activities and goals that make your day go faster. It will give you a feeling of energy and engagement that can make work feel more satisfying throughout the day.
The Humane Society of the United States offers these guidelines for pet owners to keep their furry friends safe this summer:
During warm weather, the inside of your car can reach 120 degrees in a matter of minutes, even if you’re parked in the shade. Pets who are left in hot cars even briefly can suffer from heat exhaustion, heat stroke, brain damage, and can even die. Don’t think that just because you’ll be gone “just a minute” that your pet will be safe while you’re gone.
Always supervise a pet in a pool. Provide plenty of water and shade for your pets while they’re enjoying the great outdoors so they can stay cool.
On hot days, limit exercise to early morning or evening hours. Hot asphalt can burn your pet’s paws. Pets can get sunburned, too, and your pet may require sunscreen on his or her nose and ear tips.
Your pet can suffer from heat exhaustion and heat stroke. The signs of heat stress include heavy panting, glazed eyes, a rapid pulse, unsteadiness, a staggering gait, vomiting, or a deep red or purple tongue.
If your pet does become overheated, move him into the shade and apply cool (not cold) water over his body. Let your pet drink small amounts of water or lick ice cubes. If necessary, get him to a veterinarian immediately.
These acronyms aren’t new, but they are worth revisiting:
ALF (Always Listen First): Used in training sessions and counseling, this is simply a polite thing to do.
GROW (Goals, Reality, Options, Will): Often used in life coaching sessions, these are factors involved in self-improvement.
IDEA (Identify, Design, Execute, Augment): A planning strategy to first identify the relevant issues, then design a course of action, execute the plan, and adjust or add to it as necessary.
The Bank of Canada held its overnight rate at 0.25 per cent this morning, a level it considers its effective lower bound. In addition, the Bank is continuing its quantitative easing program, committing to large-scale asset purchases of at least $5 billion per week of Government of Canada bonds along with continued purchases of provincial and corporate bonds. In the statement accompanying the decision, the Bank noted that the economic outlook remains extremely uncertain, but global economic activity is picking up. Financial conditions have improved, oil prices have rebounded, and pent-up demand in the Canadian economy has lead to a bounce in output and employment. The Bank expects that the Canadian economy will contract close to 8 per cent this year, but will build momentum into the second half of this year, leading to the economy growing 5.1 per cent in 2021. The Bank further noted that the economy will require extraordinary monetary policy support and the Bank will hold its policy rate at its effective lower bound until slack in the economy is absorbed and inflation has returned to its 2 per cent target.
Like the Bank, BCREA is projecting that the Canadian, and BC economy will start to recover in the third quarter. Positive signs of recovery are emerging in the housing market, with sales in BC recovering their pre-COVID-19 level in June. With the Bank committing to holding its policy rate at 25 basis points until slack in the economy is absorbed, and continuing its quantitative easing program of asset purchases, Canadian mortgage rates should remain at current historical lows for quite some time, providing a significant boost to the BC housing market.
For more information, please contact: Gino Pezzani.
Vancouver, BC – July, 2020. The British Columbia Real Estate Association (BCREA) reports that a total of 8,166 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in June 2020, an increase of 16.9 per cent from June 2019. The average MLS® residential price in BC was $748,155, a 9.1 per cent increase from $685,968 recorded the previous year. Total sales dollar volume in June was $6.1 billion, a 27.5 per cent increase over 2019.
“Sales around the province surged back to pre-COVID-19 levels in June,” said BCREA Chief Economist Brendon Ogmundson. “While there are some temporary factors that may have pushed demand forward, we are cautiously optimistic that market activity will remain firm.”
Although listings activity has normalized along with sales, active listings are still down close to 20 per cent year-over-year and, as a result, many markets are seeing upward pressure on prices.
Year-to-date, BC residential sales dollar volume was up 0.6 per cent to $24.7 billion, compared with the same period in 2019. Residential unit sales were down 8 per cent to 32,875 units, while the average MLS® residential price was up 9.4 per cent to $751,722.
For more information, please contact: Gino Pezzani.
"You have heard the expression, ‘Anything worth doing is worth doing well.’ Here’s your new motto: ‘Anything worth doing is worth being willing to do badly.’
If something is important to you, then you have got to be willing to try it, even knowing that you may fail. If you have the attitude that you can’t do something unless you can do it well, or perfectly, then you will never take a step. Be willing to take the step.”