Canadian housing starts fell to 236.1k units in December at a seasonally-adjusted annual rate (SAAR). This brings the total number of housing starts in 2021 to 271.2k, 16% above the previous record in 2004. Housing starts were down by 67.7k (22.3% m/m) in December (SAAR). Comparing year-over-year, starts were up slightly from December of 2020 (1.3% y/y). Single-detached housing starts dipped 3.4% in December to 70.8k, while multi-family and others dropped 28.3% to 165.3k (SAAR). 

In British Columbia, starts were up 39.1% in December, rising to 55.3k units SAAR in all areas of the province. In areas in the province with 10,000 or more residents, single-detached starts rose 20.5% m/m to 8.7k units while multi-family starts leaped 47.9% to 42.3k units. Starts in the province were 26.7% above the levels from December 2020. Starts were up by 7.7k units in Vancouver, 3.6k in Victoria, 1.9k in Kelowna, and 1.5k in Abbotsford. The 6-month moving average trend declined 4.1% to 44.2k in December in BC. 

Link: https://mailchi.mp/bcrea/canadian-housing-starts-december-2021

For more information, please contact: Gino Pezzani.

Later this year, the Bank of Canada is widely expected to embark on its first interest rate tightening cycle since 2018. In this Market Intelligence, Too Tight? The Impact of Bank of Canada Tightening on BC Housing Markets, we will consider how high interest rates might rise and using both historical data and model simulations, we analyze how BC housing markets may be impacted.

Click here to read the full report. 

Summary Findings:

1.The Bank of Canada is signalling that in response to elevated Canadian inflation, it will begin raising its policy rate or “tightening” monetary policy this year.

2. Historically, Bank of Canada tightening has led to falling home sales and flattening home prices.

3. With markets so out-of-balance, it will take a substantial decline in demand to return active listings to a healthy state. 

4. Model simulations show that the most likely outcome of this round of Bank of Canada tightening will be home sales falling to near their historical averages and for home price growth to moderate, but because of severely low supply, it is unlikely to result in significant home price declines.

For more information, please contact: Gino Pezzani.

Schools may be opening up, but some remote e-learning will no doubt continue until the pandemic is well and truly gone. Online classes will remain, so be careful of the strain too much screen time can put on a young person’s eyes. Follow this guidance from U.S. News & World Report.

•Take regular breaks. Set a timer to remind kids to look away from the screen every 20 minutes or so.

•Mark book chapters. Use paperclips to mark real books every few chapters to again encourage kids to rest their eyes.

•Keep screens at arm’s length. The screen of your child’s laptop or tablet should be 18–24 inches from their eyes.

•Reduce glare. Place the light source behind your child’s back; not behind the screen. Use the monitor’s controls to adjust brightness and contrast so it’s easy on the eyes. Don’t keep the room too dark, or the screen’s brightness can aggravate after-images and cause eye discomfort.

•Stop before bedtime. Kids should discontinue screen watching 30–60 minutes before going to bed.

•Spend time outdoors. After doing their school work, or during breaks, have children spend some time outdoors. Exposure to natural light can slow the development of nearsightedness, especially in younger children.

•“Stick to your business plan.” No matter how good your plan is, it shouldn’t be set in stone.

Situations change, and if you’re not willing and able to adapt and adjust, you’ll run your career into the ground. Stay on top of trends and developments in your industry so you can react quickly.

•“Do what you love.” You probably shouldn’t pursue a career in a field or position you absolutely hate, but just because you love to cook doesn’t mean you’ll be able to open and run a 5-star restaurant. Figure out what you do best, and look for a career that fits your talents. You’ll be happier and more successful in the long run.

•“Never say no.” The customer isn’t always right, or reasonable. You may think you can’t afford to turn down an opportunity, but take the time to consider whether a request is reasonable, and if you’re the right person (or organization) to do it. You’ll last longer by being judicious about where to invest your energy and resources instead of trying to please absolutely everybody.

•Eat more plants. Fruits and vegetables contain fiber, antioxidants, and lots of vitamins and minerals.

•Limit animal fat. Stick to mono-unsaturated fats found in olive oil, avocados, and many nuts, along with polyunsaturated fats from fish like wild salmon and sardines.

•Watch your sugar intake. Americans consume roughly 22 teaspoons per day. Limit sugar intake by checking the labels on everything you buy.

•Exercise often. The American Heart Association advises about 150 minutes of moderate exercise a week.

•Watch your stress. Stress can heighten your heart disease risk. Try yoga and meditation!

A university professor began reflecting on the people who’d had a positive impact on his life. In particular he remembered a schoolteacher who’d gone out of her way to instill in him a love of poetry. He hadn’t seen or spoken to her in many years, but he located her address and sent her a letter of thanks.

A short time later, he received this reply: “I cannot tell you how much your note meant to me. I am in my 80s, living alone in a small room, cooking my own meals, lonely, and, like the last leaf of autumn, lingering behind. You will be interested to know that I taught school for 50 years and yours is the first note of appreciation I ever received. It came on a blue-cold morning, and it cheered me as nothing has in many years.” The teacher’s note brought the professor to tears—and then he began searching for others who’d shaped his life, just to say thanks.

For immediate release

Vancouver, BC – January, 2022. The British Columbia Real Estate Association (BCREA) reports that a record 124,854 residential unit sales were recorded by the Multiple Listing Service^® (MLS^®) in 2021, a 32.8 per cent increase from the 94,001 units sold in 2020. The annual average MLS^® residential price in BC was $927,877, an 18.7 per cent increase from $781,572 recorded the previous year. Total sales dollar volume was $115.8 billion, a 57.7 per cent increase from 2020.

“Last year was a record year for BC homes sales with seven market areas setting new highs,” said BCREA Chief Economist Brendon Ogmundson. “Listings activity could not keep up with demand throughout the year. As a result, we start 2022 with the lowest level of active listings on record.” 

A total of 6,871 MLS^® residential unit sales were recorded across the province in December down 17.6 per cent from a record-setting December 2020. The average MLS^® residential price in BC passed the $1 million mark for the first time as the average price in three of the largest markets in the province were over $1 million in December. Total sales dollar volume was $7.1 billion, a 1.2 per cent increase year-over-year. 

Total active residential listings were down 41.2 per cent to a record low of 12,179 units. The supply situation is particularly concerning in the Fraser Valley, Chilliwack and Vancouver Island where there is one month or less of supply at the current pace of sales.  

For more information, please contact: Gino Pezzani.

Nurturing the right mindset is crucial to long-term success in any occupation or industry. The Tampa Bay Times advises adopting attitudes like these:

Learning from mentors. The right mentor can share invaluable experience and advice to guide you in your career. Analyze his or her approach to people, challenges, and opportunities. Ask lots of questions, and listen to your mentor’s advice.

Being a good team member. You don’t get ahead all by yourself. You’ll advance in your career by committing yourself to the goals of your team and organization. You’ll be offered opportunities to do more if you show you’re willing to support the big picture.

Finding a healthy balance. Don’t devote yourself single-mindedly to work, or you’ll burn yourself out. Make time for family and friends. Exercise and eat healthy. Give yourself regular down time.

Examining your beliefs. From time to time, look at the values and rules that guide your life. Are they still working for you? Don’t be reluctant to make changes that fit your circumstances better as you progress in your life and career.

Giving Back. Wherever you are in your career, be ready to help people. Volunteer, share your expertise, mentor others, and demonstrate that you're willing to help others.

Canadian employment grew for the seventh consecutive month in December according to Statistics Canada, rising by 55,000 to 19.371 million (0.3%, m/m). Canadian employment had recovered to its pre-pandemic level in September and is now roughly 1.3% above that level. Since the prior survey period, public health measures were largely unchanged. The survey occurred prior to the emergence of the Omicron variant and restrictions were very low across the country. 

December employment gains were most pronounced among males aged 25-54, Ontarians, and those within the construction and education sectors. Fulltime employment increased by 123,000 (+0.8%) in December, whereas employment among those working part-time declined by 68,000 (-1.9%). The Canadian unemployment rate declined for a seventh consecutive month to 5.9%, the lowest level since the onset of the pandemic. The unemployment rate is now within 0.2% of the rate in February of 2020 (5.7%). 

In BC, employment was essentially flat (+400, m/m), remaining at the highest level since the pandemic began. The unemployment rate, however, declined in December, reaching 5.3%, the lowest level since the pandemic began. Only Quebec and Manitoba currently have a lower unemployment rate in Canada. 

Link: https://mailchi.mp/bcrea/canadian-employment-december-2021

For more information, please contact: Gino Pezzani.