Success breeds more success, or so they say. But a study reported in the Journal of Experimental Social Psychology seems to suggest that watching other people succeed lowers the motivation to strive for success on your own.

In an experiment, a group of test subjects watched videos of people completing a series of puzzles. Another group was shown videos where the puzzles were not solved, and a third group watched no videos at all. Then the groups were asked to complete similar puzzles themselves.

Subjects who had watched the puzzles get completed actually had the lowest rate of completion. Scientists call this “vicarious goal satiation,” explaining that watching others achieve goals can provide a sense of achievement that drains the motivation to accomplish goals on one’s own. The lesson: to prime yourself for success, focus on what you need to do, and don’t get distracted by others’ efforts - successful or not.

In September, sales, new listings and housing starts in BC all declined somewhat from August, extending the calming trend relative to peaks in March. While MLS^® sales rose slightly in most regions of the province, a decline in the large market of the lower mainland caused a decline overall. Rental rates remain elevated in Victoria and Vancouver relative to pre-pandemic levels amid generally high consumer price appreciation.

Retail sales in BC rose in August to a fresh record, with sales 8.6 per cent above the same month last year. As of October, restaurant reservations in Vancouver are near the highest level since the onset of the pandemic, at roughly 80 per cent of the pre-pandemic level. This contrasts with a drop in reservations in Montreal and Toronto relative to post-pandemic peaks in late August. In BC, Google’s measure of movement trends remains high, although below the peak in late summer, currently about 14 per cent below pre-pandemic levels.

Although aggregate employment has recovered in BC to pre-pandemic levels, the accommodation and food service sector is about 9 per cent below the pre-pandemic level. The labour market has served high-income workers much better than low-income workers. Employment in high-income industries is about 10 per cent above pre-pandemic employment levels, while employment in low-income industries is about 6 per cent below pre-pandemic employment levels. Manufacturing in BC dropped for a second month in August mostly due to a 18 per cent drop in sales of wood products. Exports in the province edged up in August, while imports surged 21 percent to a fresh record. Consumer and business confidence in BC contracted slightly in September amid new COVID-19 restrictions. In August, US tourists finally began reentering the province, hitting roughly 20 per cent of the February 2020 level. 

For a more comprehensive overview of BC's economic recovery, click here. 

BCREA's updated COVID-19 Recovery Dashboard is available here. 

For more information, please contact: Gino Pezzani.

Canadian seasonally-adjusted retail sales rose 2.1% to $57.2 billion in August. The rise was driven by sales at food and beverage stores (4.8%), gasoline stations (3.8%), and clothing and clothing accessories stores (+3.9%). COVID restrictions were generally eased across the country in August. According to Statistics Canada's survey, just 0.6% of retailers were closed at some point in August. Preliminary estimates, based on roughly 54% of respondents reporting so far to the agency, indicate that retail sales declined 1.9% in September. 

In BC, sales rose 1% to a fresh record in August, erasing a drop in July. Compared to the same month last year, retail sales were up 8.6% in the province. Only food and beverage store sales, electronics and appliance sales, and health and personal care sales were not up on a year-over-year basis in August. In the Greater Vancouver region, sales rose 2.7% month-over-month and were up 16.2% year-over-year. 

In August, Canadian e-commerce sales rose from $2.8 billion to $3 billion. As a result, e-commerce increased from 4.6% of total retail sales in July to 4.9% in August. This percentage is lower than at most points since the onset of the pandemic but is elevated compared to pre-pandemic levels. 

Link:  https://mailchi.mp/bcrea/canadian-retail-sales-august-2021

For more information, please contact: Gino Pezzani.

Canadian prices, as measured by the Consumer Price Index (CPI), rose 4.4% on a year-over-year basis in September, rising at the fastest rate since 2003. On a month-over-month basis, the CPI was up 0.2% in September. The Bank of Canada's preferred measures of core inflation (which use techniques to strip out volatile elements) rose an average of 2.7% year-over-year in September. Major drivers of the year-over-year price increase included transportation prices (+9.1%), shelter (+4.8%) and food prices (+3.9%) partly on continuing supply-chain difficulties. The homeowner replacement cost index, which measures the cost of replacing home structures, rose 14.4% year-over-year in September, which was the fastest rate since the 1980s. In BC, consumer prices were up 0.15% month-over-month, and up 3.5% on a year-over-year basis. 

Inflation continues to run ahead of the Bank of Canada's 2 per cent target. The driving force behind rising prices is still isolated to a few categories of spending. In particular, the rising price of gasoline and the run-up in Canadian home prices since last year. Those categories alone accounted for about half of the observed inflation in September. Home prices in Canada are beginning to flatten out, which should mean a fading impact on inflation over the next year. Likewise, the impact of gas prices should continue to decline as base-year effects have less influence. Other issues putting upward pressure on consumer prices are being driven by bottlenecks and supply shortages. Those shortages are unlikely to resolve quickly and so we anticipate that the current elevated rate of inflation will linger for some time to come. Inflation that is lingering above target for an extended period may put some pressure on the Bank of Canada, though we still expect the first rate increase to come toward the end of 2022.

For more information, please contact: Gino Pezzani.

Link: https://mailchi.mp/bcrea/canadian-inflation-september-2021

Canadian housing starts declined for the fourth consecutive month in September, but remain strong compared to typical pre-pandemic activity. Housing starts decreased by 11.6k to 251.2k units (-4.4% m/m) in September at a seasonally-adjusted annual rate (SAAR). Comparing year-over-year, starts were up significantly from September of 2020 (20.1% y/y). Single-detached housing starts dipped 5% in September to 76.7k, while multi-family and others declined 4% to 174.4k (SAAR). 

In British Columbia, starts declined for a third consecutive month, dropping sharply by 23.7% m/m to 35.9k units SAAR in all areas of the province. Single-detached starts rose 9.6% m/m to 7.9k units while multi-family starts offset this growth with a 32.5% decline to 23.7k units. Despite this, starts in the province remained 11% above the levels from September 2020. BC's six-month moving average for starts declined sharply following three months of gains. 

For more information, please contact: Gino Pezzani.

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

Did you know? A teal pumpkin is a sign that a host will offer treats suitable for anyone who has any food allergies or intolerances. Although the practice originated with trick-or- treaters, it has since spread to harvest festivals, community gatherings, and other autumn celebrations where food is handed out to young children.

If someone has a food allergy or intolerance to the treat on offer, it could ruin the fun for them. So consider having an alternative that anyone can tolerate: colorful pencils, stamps and stickers, costume jewelry and bubbles are all fun choices that anyone can enjoy.

Creativity and intelligence aren’t just in the brain. Your physical body plays a large role in your ability to think clearly, solve problems, and find innovative strategies. The Height Media website offers these tips for strengthening your body to enhance your mind:

Practice paced breathing. Steady, healthy breathing releases chemicals that can help you stay calm during stressful situations. Spend 10 minutes a day breathing deeply from your diaphragm; in through the nose and out through your mouth. The in and out counts can be different. One study found that after 21 days of paced breathing, a group of bankers achieved an average of 62% improvement in cognitive capacity on complex decision-making tasks.

Sit and stand straight. Hunching over for hours on end reduces the space your lungs need to expand adequately, increasing carbon dioxide levels and reducing your emotional and mental performance. Sit and/or stand with your feet flat on the ground, straighten your spine as if you had a string attached from the ceiling to the top of your head, and square your shoulders. Check your posture during the day.

Walk throughout the day. Sitting too much increases your risk of cancer by 13%, according to studies, and also raises your mortality risk by 17%. However, you’re 45% more likely to have a creative idea while you’re walking than when you’re seated, even if you’re walking on a treadmill. If you’re blocked for ideas, a walk can be a quick, easy way to unleash your imagination.

These words from an unknown poet remind me to be thankful on Thanksgiving and all the other days, too.

Be thankful that you don't already have everything you desire.
If you did, what would there be to look forward to?

Be thankful when you don't know something,
for it gives you the opportunity to learn.

Be thankful for the difficult times.
During those times, you grow.

Be thankful for your limitations,
because they give you opportunities for improvement.

Be thankful for each new challenge,
because it will build your strength and character.

Be thankful for your mistakes.
They will teach you valuable lessons.

Be thankful when you're tired and weary,
because it means you've made a difference.

It's easy to be thankful for the good things.

A life of rich fulfillment comes to those who are also thankful for the setbacks.Gratitude can turn a negative into a positive.

Find a way to be thankful for your troubles, and they can become your blessings.I love the thought that Thanksgiving is less of a meal and more of a mindset. May your Thanksgiving be filled with friends, family, love and all that is important to you.

Canadian employment grew for the fourth consecutive month in September, rising by 157,000 to 19.13 million (0.8%, m/m). During the survey period, several provinces had reintroduced or planned to reintroduce vaccine passports and indoor masking. Restrictions on international travelers entering the country were eased on September 7th, likely boosting tourism employment. 

The current employment level matches the figure from February 2020, meaning that the job market has technically erased the losses from the pandemic. Due to population growth, the employment rate remains 0.9 percentage points below February 2020 at 60.9%. The Canadian unemployment rate declined for a fourth consecutive month to 6.9%, the lowest level since the onset of the pandemic. 

In BC, employment grew by 12,300 to 2.682 million (0.46%, m/m), once again hitting the highest level since the pandemic began. For the fourth consecutive month, British Columbia was the sole province with employment notably above its pre-pandemic level. The unemployment rate declined by 0.3 in September to 5.9%, the lowest level since the pandemic began. BC has the third lowest unemployment rate in Canada, following Manitoba and Quebec. 

For more information, please contact: Gino Pezzani.
Link: https://mailchi.mp/bcrea/canadian-employment-september-2021