Canadian housing starts were essentially flat in November, declining just 0.2 per cent to 264.2k units at a seasonally-adjusted annual rate (SAAR). Comparing year-over-year, starts were down from November of 2021 (14 per cent). Single-detached housing starts fell 5 per cent to 67.8k, while multi-family and others rose 2 per cent to 196.4k (SAAR). 

In British Columbia, starts rose by 9 per cent in November to 50.5k units SAAR in all areas of the province. In areas in the province with 10,000 or more residents, single-detached starts fell 4 per cent m/m to 7.4k units while multi-family starts rose 13 per cent to 39.6k units. Starts in the province were 28 per cent above the levels from November 2021. Starts were up by 2k in Vancouver and 0.9k in Kelowna, but were down by 0.1k in Abbotsford and unchanged in Victoria. The 6-month moving average trend rose 3 per cent to 50.7k in BC in November. 

Link: https://mailchi.mp/bcrea/canadian-housing-starts-november-2022

For more information, please contact: Gino Pezzani.

Two siblings worked for their father on the family’s farm. The younger sister was steadily given more responsibility over the years, and one day the older brother asked his father to explain why.

The father said, “First, go to Kelly’s farm and see if they have any geese for sale. We need to add to our stock.”

The son soon returned and said, “Yes, they have five geese they can sell us.”

The father said, “Good. What’s the price?”

The son went back to the farm and returned shortly . “The geese are $10 each,” he said.

The father asked, “Can they deliver the geese tomorrow?” Again, the son went back, and then returned with the answer. “They can deliver the geese tomorrow.”

The father told his son to wait and listen, called his daugher in from the fields and said to her, “Go to Davidson’s farm and see if they have any geese for sale. We need to add to our stock.”

The daughter soon returned with the answer. “They have five geese for $10 each, or 10 geese for $8 each and they can deliver them tomorrow. I asked them to deliver the five unless they heard otherwise from us in the next hour. And I agreed that if we want the extra five geese, we could buy them at $6 each.” 

The father turned to the older son, who nodded. He now realized why his sister was given more responsibility and reward.

For the complete news release, including detailed statistics, click here.

Vancouver, BC – December, 2022. The British Columbia Real Estate Association (BCREA) reports that a total of 4,512 residential unit sales were recorded by the Multiple Listing Service^® (MLS^®) in November 2022, a decrease of 50.8 per cent from November 2021 and about 30 per cent below a historical average November. The average MLS^® residential price in BC was $906,785 an 8.6 per cent decrease from $992,245 recorded in November 2021. Total sales dollar volume was $4.1 billion, a 55 per cent decline from the same time last year. 

“A lot has changed in 2022,” said Brendon Ogmundson, Chief Economist. “This time last year, home sales were near a record for November, home prices were accelerating, and mortgage rates were less than half of current levels. Elevated mortgage rates will continue to constrain sales activity, though with the Bank of Canada nearing the end of its tightening cycle and benchmark bond yields falling, mortgage rate relief may be on the horizon.”

Year-to-date, BC residential sales dollar volume was down 28.7 per cent from the same period in 2021 to $77.4 billion. Residential unit sales were down 34.4 per cent to 77,376 units, while the average MLS^® residential price was up 8.6 per cent to $1 million.   

For more information, please contact: Gino Pezzani.

To view the December 2022 Mortgage Rate Forecast PDF, click here.

Highlights:

1. Bond yield volatility surges through the Fall.

2. The Canadian economy may be starting its descent into a recession.

3. A Bank of Canada pivot in 2023?

For more information, please contact: Gino Pezzani.

The Reader’s Digest website shares these tips for saving money on groceries:

Join loyalty programs. You can get discounts and money back on your purchases through your store’s loyalty program. Sign up and check all the rules so you get maximum value from it.

Look for final markdowns and clearances. Many grocery stores place clearance items in a designated area, or use special stickers to help shoppers identify them.

Be careful with multiples. They can trick you into spending more than you want. For example, if a sign on a bag of chips says “Two for $5,” and a single bag of chips is $3.29, you’re getting a good deal only if you want two bags of chips.

Traveling abroad is stressful enough without accidentally offending the people you’re visiting. Check out these warnings from the BuzzFeed website to steer clear of a faux pas during a trip to a foreign nation:

China. Don’t give any item or gift with the number four in it. The Chinese word for “four” sounds close to the word for “death.”

Denmark. You’ll show bad manners if you take the last item of food off a plate. If you want a little more, take only part of it and leave the rest.

India. Only use your right hand when eating or passing food. The left hand is considered unclean in India, as well as in Africa and the Middle East.

Japan. Don’t stick your chopsticks straight up in a bowl of rice because rice is presented this way during funerals. Doing it during a meal will be seen as bad luck.

Mexico. Your server won’t bring your check to the table before you ask for it, so don’t assume he or she isn’t being attentive to you.

Netherlands. Never gift a knife or anything with a sharp edge, such as scissors. These items are considered unlucky.

Venezuela. If you arrive on time for a business meeting, you’ll appear greedy and rude. You’re actually better off being 10 or 15 minutes late.

The Bank of Canada raised its overnight policy rate by 50 basis points, bringing it to 4.25 per cent, its highest level since 2008. In the statement accompanying the decision, the Bank noted that the Canadian economy continues to operate in excess demand with tight labour markets and as a result inflation remains elevated. There is increasing evidence that tighter monetary policy is restraining the domestic economy, with household spending declining in the third quarter while interest-rate sensitive sectors like housing continue to sharply contract. The Bank continues to expect economic growth to stall through the end of 2022 and into the first half of 2023. Inflation is expected to ease over the next year, falling to 3 per cent in 2023 and returning to the 2 per cent inflation target in 2024. The next rate announcement is on January 25th, 2023. 

After a year of aggressive tightening that now appears to be at or very close to an end, the Bank may reverse course in the second half of 2023 as the economy slows significantly or even tips into recession. Crucially, any loosening of monetary policy will only occur if we see a sustained decline in inflation. Given weakening economic growth, falling gasoline and other commodity prices, and fading effects from pandemic driven supply chain problems, we could see a significant downward trajectory for inflation in 2023, which would provide the Bank with the necessary support to begin lowering its policy rate.

Link: https://www.bankofcanada.ca/2022/12/fad-press-release-2022-12-07/

For more information, please contact: Gino Pezzani.

The “clocks” in our bodies are important to maintaining good health—and interfering with them can cause big problems, according to researchers.

Three researchers recently won the Nobel Prize for their work studying how these clocks influence every cell in the human body. According to the NPR website, pulling an all-nighter for work or school, or jet lag from a transatlantic flight, can cause blood pressure to go up, disrupt hunger hormones, and increase blood sugar levels.

You can overcome these problems in time, but a regular schedule that throws off your body clock can lead to such health problems as weight gain and Type 2 diabetes. Late-night snacking can also disrupt your body clock. When darkness falls, your “master clock” advises other clocks not to eat. When you override that command, the pancreas starts releasing insulin to break down the food, which can reset the pancreatic clock and take it out of synch with other clocks in your body.

The takeaway? Be attentive and tune in to the clocks inside your body for better health.

If you're thinking about giving gifts to your employees during the December holidays, that's a good idea, but approach it with caution. Here are some basic pointers:

Don’t exclude people. Give gifts to your entire department. Handing out presents to some and not others will only cause resentment and trouble.

Be consistent. Give everyone the same item or a gift that is similar in price and style. Don’t give any one employee a present that stands out from the rest.

Go beyond the workplace. Don’t limit yourself to professional or workplace-related gifts. Decorative items for the home are usually appreciated as much as workplace accessories. 

Be careful when giving food. Some employees might have religious or medical restrictions on what they eat or drink. You should know your recipients well enough to steer clear of potential minefields.

Make returns simple. You can’t please everyone. Include gift receipts so people can return or exchange your presents without trouble.

Canadian employment rose by a hair to 19.666 million in November, up by 10,000 (0.05 per cent). The Canadian unemployment rate fell by 0.1 to 5.1 per cent, hovering just above all-time lows. Average hourly wages were up 5.6 per cent from this time last year. Wage gains remain below the inflation rate, however, which hit 6.9 per cent year-over-year in the most-recent data. Total hours worked were up 1.8 per cent year-over-year. 

Employment in BC fell by 0.5 per cent to 2.748 million in November, while Metro Vancouver's employment rose by 0.1 per cent month over month. BC's unemployment rate rose in November to 4.4 per cent, still near record lows, while Metro Vancouver's rate rose to 4.7 per cent. Among the provinces, only Quebec and Saskatchewan currently have a lower unemployment rate. 

Link: https://mailchi.mp/bcrea/canadian-employment-november-2022-december-2-2022

For more information, please contact: Gino Pezzani.