The Bank of Canada maintained its overnight rate at 0.25 per cent this morning, a level it considers its effective lower bound. The Bank reiterated what it calls "extraordinary forward guidance" in committing to leaving the overnight rate at 0.25 per cent until slack in the economy is absorbed and inflation sustainably returns to its 2 per cent target. The Bank is now projecting that will occur in the second half of 2022 rather than in 2023. The Bank is also continuing its quantitative easing (QE) program, though it will be reducing its bond purchases from at least $4 billion of Government of Canada bonds per week down to $3 billion per week. In the statement accompanying the decision, the Bank noted that the economic recovery has been considerably stronger than forecast and noted risk associated with the rapid rise in home prices, a risk the Bank will continue to monitor. Strong growth in exports and business investment, along with additional fiscal stimulus from the federal and provincial governments are expected to push Canadian Real GDP growth to 6.5 per cent in 2021 and nearly 4 per cent in 2022.

A dramatic re-set of market expectations for growth and inflation prompted a jump in government bond yields over the second half of February. However, since then bond markets have calmed with rates trending sideways for the past several weeks. As a result, Canadian mortgage rates have plateaued around 2.14 per cent on a five-year fixed rate. However, the Bank's announcement of a tapering of its QE program and an earlier date for potential future rate increases may put some upward pressure on mortgage rates in coming months, which along with the proposed 5.25 per cent minimum qualifying rate, could have a moderating influence on home sales through the summer.

For more information, please contact: Gino Pezzani.

Link:  https://mailchi.mp/bcrea/bank-of-canada-interest-rate-announcement-april-21-2021

Canadian housing starts increased 21.6% m/m to 335,200k units in March at a seasonally adjusted annual rate (SAAR), after declining in February. Building activity was up month-over-month in both multi-unit (+34%) and single-detached (+4%) segments. On a year-over-year basis, starts were up 70%, though this measure will become quite distorted by base-year effects going forward as we compare to the start of the COVID-19 pandemic. The six-month moving average in Canadian housing starts stands at a very strong 273,664 units SAAR.

In BC, housing starts increased by 57% m/m to a record high 71.2K units SAAR, following an increase of 21% in the previous month. That remarkable jump in new home construction was the product of a flood of building activity in the multi-unit segment, which was up by 77%, while single-detached starts were up 7%. The rise in the multi-unit segment was led by Vancouver, which reported a 71% increase in multi-unit starts in March to an all-time record of 3,120 units or 41K units SAAR. On a year-over-year basis, total housing starts were up by 106% in BC.

For more information, please contact: Gino Pezzani.

Link:  https://mailchi.mp/bcrea/canadian-housing-starts-march-april-19-2021

How much do you love your houseplants? Enough to play music for them? A British survey reported by The Herald found that almost 50% of plant owners play music for their leafy friends in a variety of genres, from folk to rock to classical, and everything in between.

The most popular artist choice is Scottish pop singer, Lewis Capaldi, shared by 62% of the survey’s 1,150 respondents. The Korean pop band, BTS, came in second with 55%, followed by America’s Taylor Swift, at 51%. Elton John, David Bowie, and Fleetwood Mac also ranked in the Top 10.

Vancouver, BC – April, 2021. The British Columbia Real Estate Association (BCREA) reports that a total of 15,073 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in March 2021, an increase of 123.3 per cent over March 2020 and a new all-time record for monthly BC home sales. The average MLS® residential price in BC was $947,707, a 20.4 per cent increase from $787,032 recorded in March 2020. It should be noted that average prices across the province are being skewed higher as more expensive single-detached homes remain a higher share of dollar volume during the pandemic. Total sales dollar volume was $14.3 billion, a 168.9 per cent increase from last year.

“Home sales in the province shattered the previous record, led by markets in the Lower Mainland,” said BCREA Chief Economist Brendon Ogmundson. “While mortgage rates have risen in recent months and a modest tightening of mortgage regulations is on the horizon, market activity is expected to remain very strong through the spring.”

Total active residential listings were down 24.4 per cent to 22,337 units in March. The total inventory of homes for sale remains severely depleted, but new listings activity has accelerated in response to high prices.

“While the total supply of re-sale listings remains at crisis levels, many markets saw record new listings activity in March. Strong new listings activity will need to continue for some time before markets will see a healthier balance with less pressure on home prices,” said Ogmundson.

For more information, please contact: Gino Pezzani.

No foolin’— April is Stress Awareness Month. It’s important to manage stress, because it’s not only emotionally taxing, but it can also be harmful to your physical health. To keep stress under control, try these three simple tips from Harvard Medical School.

Take a new approach. Much of life’s stress comes from how we view the various situations we encounter. For example, two people may take on the exact same task, but only one person may find it stressful. Some of this has to do with personality, but it also has to do with your inner narrative and how you frame things in your mind. If you aim to change your perspective, you can often reduce the number of stressors in your life.

Burn off tension. Physical activity can help get you on a more even keel. But for many people, sticking to a daily exercise schedule is itself stressful, often because they pick activities they don’t enjoy. Instead, choose to do something you love— like gardening, nature walks, or a yoga practice— which can slow the harmful effects of stress. Looking forward to the activity can keep you motivated, and help you destress and recharge.

Get organized. Ever spend 20 minutes looking for your car keys or trying to find a misplaced wallet or purse? Disorganization and clutter can cause unnecessary stress. Taking time to set up some systems, such as a set location for your keys, can help reduce these daily nuisances. In addition, plan ahead when it comes to other strategies that can help you manage your stress. Create a time for exercise, plan healthy meals, and get on a regular schedule to ensure that you’re getting enough sleep.

Also, if you know you’re going to encounter a stressful situation, think ahead of time about how you are going to manage it. Have a plan in place to help reduce your level of stress, and prevent it from taking a toll on your health.

A young woman known to her friends as an avid online shopper discovered she had received a small cash rebate from a purchase. It wasn’t expected, but seeing the envelope show up in the mail brought such a smile to her face, her roommate asked what good news she had received.

When the young lady explained she had received an extra $500, her roommate suggested she consider lending it out in the form of a microloan to women in need who were trying to finish their education or start their own business. The successful young woman liked the idea and, on a whim, signed up with an online site devoted to microloans.

About six months later when the loan was repaid, she decided to lend out the money a second time... then a third... and so on. Several years later, she had lent out the same dollars over and over again, without ever missing the money. In the meantime, she continued to receive thank you letters and updates from many of the women who used the microloan, made possible through her check, to transform their own lives.

Although she has long since moved on from her roommate situation and is now a homeowner, she still sends her old friend a letter every year, sharing a few details of all the women she has helped. Each time, she thanks her old friend for making the suggestion years ago. That first loan changed the meaning of money for her, while changing the outcome for others at the same time.

Canadian employment gained 303K jobs in March (1.6%, m/m), bringing total employment to within 1.5% or 296K jobs of its pre-pandemic level from February 2020. Both part-time employment with full-time employment contributed to the gains in March, rising by 128K and 175K jobs respectively. The national unemployment rate decreased by 0.7 percentage points to 7.5%, which is the lowest rate since February 2020.

In BC, employment grew by 35k (+1.3%, m/m) in March. The unemployment rate decreased from held steady at 6.9%, which is the lowest rate the province has recorded since February 2020. Meanwhile, in Vancouver, employment increased by 32.3k (+2.2%,m/m), following a rise of 13.9k in the previous month. Compared to one year ago, employment in BC was up 8.4% (+116.7K) jobs.

Employment in BC and other parts of Canada may slow in April as more restrictive "circuit-breaker" polices are implemented to mitigate rising COVID-19 cases. Fortunately, daily vaccinations have ramped-up considerably and the labour market should be in a much better place by early summer.

For more information, please contact: Gino Pezzani.

Link:  https://mailchi.mp/bcrea/canadian-employment-march-april-9-2021

Bringing diversity and inclusion into your organization calls for much more than a diversity statement. It takes a solid commitment. Listen to what the WTOP News website has to say:

• Define your terms. What do diversity and inclusion actually mean in your workplace? It should start with creating a safe work environment where everyone feels welcome, valued, and respected, and everyone has equal opportunities for development and advancement.

• Get leadership on board. If your CEO and other top leaders don’t take your efforts seriously, neither will anyone else. They have to be honest and open about what they hope to achieve, and be willing to work together with employees across the board to make progress.

• Start small. You can’t transform an entire organization overnight. Set modest goals for increasing diversity at the outset— changing underrepresentation of certain groups, for example. Track progress over a few months, looking at success and gaps. Use the data to expand your efforts and grow.

• Recruit with diversity in mind. Your recruiters and hiring managers should become D&I ambassadors for your organization. Make sure they’re reaching out beyond their usual sources of talent so they can attract candidates who will be a good fit for your organization, regardless of whether they check every single box for experience and qualifications.

April is Jazz Appreciation Month, culminating with a grand finale on April 30: International Jazz Day, formally declared by the United Nations back in 2012. Even if jazz isn’t among your favorite genres, I’ll bet some of those celebratory sounds speak to your soul.

Although there is some debate over the exact year jazz was born, most everyone can agree what makes it unique is all the different components which, when braided together, form one cohesive sound. The idea is not unlike being in a group of people who bring completely different ideas to the table, but ultimately collaborate to produce a great final product — jazz, in human form.

When you think about it that way, what are you composing these days?

If you’re not working on anything besides everyday life, consider this: April is the perfect month to start conceptualizing your next act, something you truly want to compose and revise until it sounds just right.

If we are to believe Arthur Schopenhauer, the German philosopher, who said, “Music is the food of soul,” then April is your time to feast on all the possibilities life has to offer.

Whether you choose to embark on a new branch in your career or revise your plan for the year, this beautiful month of blue skies, sandwiched between chilly March and May’s goodbye to spring, is ideal for planning. With three-quarters of the year left ahead of you, a world that is remembering how to thrive, and opportunities everywhere… April is practically beckoning you to craft harmonious, collaborative plans into your life.

Play on!

Gino Pezzani,

Your Real Estate Consultant For Life

It was a strong start for the Canadian economy as real GDP expanded 0.7 per cent on a monthly basis in January. The increase in January marks the ninth consecutive month of positive economic growth, however, total economic activity is still about 3 per cent below its pre-COVID-19 level. With the strong start to 2021, first quarter real GDP growth is tracking at 5.5 per cent on an annualized basis.

An acceleration of vaccinations appears to be on the immediate horizon. As that roll-out progresses, we expect pent-up spending throughout the economy to be unleashed, driving a strong economic recovery. Following an unprecedented contraction in 2020, we expect the Canadian economy will enjoy two years of very strong growth with the economy expanding by more than 5 per cent this year and about 4.5 per cent in 2022.

For more information, please contact: Gino Pezzani.

Link:  https://mailchi.mp/bcrea/canadian-monthly-economic-growth-real-gdp-january-2021

Are you happy at work? The answer may depend on your attitude. The New York Post explains how to move from enduring your job, to enjoying it:

• Keep your balance. Don’t devote your whole life to your job. When you’re working, do the best you can. When you’re not, do something you really like to do; relax and recharge. Value both your work life and your personal time equally.

• Anticipate setbacks. Not every plan will succeed. Don’t be pessimistic, but take a realistic view of what could go wrong so you can plan to avoid problems or solve them as they come up. This will prevent you from being blindsided and paralyzed by obstacles in your path.

• Reward yourself. You’ve finished a big project? Celebrate. Even if you have to cut back on activities because of the pandemic, find ways to treat yourself. Plan a vacation for when it’s safe to travel again, or just take a day off to do something completely different.

• Expand your mind. Learn something new, whether it’s related to your job or not. Take an online course, study a new language, or just read something out of your usual selection. You’ll keep your mind agile and discover the joy in new pursuits.

• Remember: The grass isn’t always greener. You may think that any other job would be better than the one you’ve got now. That’s not necessarily true. Find out what your colleagues are dealing with. You may realize that you’ve got it pretty good right now.

• Consider why you have your job. Go back and think about why you chose the career path you’ve followed. Chances are you saw it as an opportunity to do some good and create value. Remember that as you work, and
remember to look for ways to incorporate your early dreams
back into your current situation.