Archive for July 2009


July 17, 2009



July 17, 2009

Canada’s “Rare” economic twist!

July 17, 2009

Inflation turns negative, falls below zero for first time in 15 years at -0.3 per cent Fri Jul 17, 8:28 AM Julian Beltrame, The Canadian Press Email Story IM Story Printable View By Julian Beltrame, The Canadian Press OTTAWA – Canada’s annual inflation rate dipped below zero for the first time in 15 years in June, as the low cost of filling up at the gas station compared to last year dropped the overall index to minus 0.3 per cent. The statistical oddity was widely expected and due solely to the rapid acceleration of gas prices across Canada at this time last year. comparison, consumers paid 24.3 per cent less to fill up at the pump this June than last year, when gas averaged 135.1 cents a litre. Filling up last month cost a relatively benign 101.6 cents a litre. Gasoline prices in June were higher than in May, however, producing an even rarer phenomenon of a negative inflation rate when prices in the real world are on the increase measured over the previous month. The month-to-month movement showed prices rising 0.3 per cent over May on the strength of the cost of gasoline, which was 8.6 per cent higher in June than it was in May. Economists have stressed that Canada does not have a deflation problem – a broad and prolonged period of falling prices – and that the dip into negative territory will be short-lived. Gasoline prices, which account for about five per cent of the Statistics Canada basket of goods that comprise the index, peaked at 136.6 cents last July and fell almost immediately afterwards, reaching a low of 76.5 cents a litre in December. Policy makers worry about deflation because it tends to influence consumers and businesses into postponing purchases in expectation of future lower prices, thereby further weakening an already struggling economy. But minus gasoline and the energy component, the cost of most things people purchase in Canada is rising, not falling. Overall, only three of the major components that go into calculation the consumer price index were in negative territory last month – shelter, clothing and footwear and transportation, which includes prices for gasoline. Statistics Canada said if the cost of energy were taken out of the calculation, the annual inflation rate would have been 2.1 per cent in June, with higher food prices the main contributor. As well, the Bank of Canada core inflation rate, which measures underlying pressure on prices and excludes volatile items such as energy and fresh fruit, stood at 1.9 per cent in June, near the central bank’s desired two-per-cent target. The last time Canada experienced a negative annual inflation reading was in November 1994, after the government slashed tobacco taxes in an effort to halt a burgeoning illegal cross-border traffic in cigarettes. Besides gas and energy, the cost of purchasing a passenger vehicle was also lower in June, falling 5.2 per cent from last year. That was up from 6.6 per cent decline registered in May and 8.3 per cent fall in April. The shelter component slid 0.8 per cent due to lower prices for natural gas and fuel oil, which were 23.7 per cent and 40.6 per cent lower than last year respectively, and savings from lower home prices and mortgage interest rates. Clothing and footwear fell 3.6 per cent with women’s clothing was down 6.1 per cent. Food was 5.5 per cent higher in June than a year ago, with health and personal care, recreation, education and reading, and alcohol and tobacco also rising. Regionally, annual inflation is in negative territory in four provinces, with Alberta the lowest rate at -1.6 per cent. – The annual inflation rate was negative 0.3 per cent in June, says Statistics Canada. Here’s what happened in the provinces and territories. (Previous month in brackets): -Newfoundland and Labrador 0.3 (0.6) -Prince Edward Island -1.1 (-0.3) -Nova Scotia -1.1 (-1.1) -New Brunswick -0.0 (0.2) -Quebec 0.2 (0.1) -Ontario 0.0 (0.4) -Manitoba 0.6 (0.8) -Saskatchewan 1.0 (0.7) -Alberta -1.6 (-0.7) -British Columbia -0.7 (0.1) -Whitehorse, Yukon 0.3 (0.4) -Yellowknife, N.W.T. 0.3 (0.3) -Iqaluit, Nunavut 3.0 (3.5) – The annual inflation rate was a negative 0.3 per cent in June, says Statistics Canada. The agency also released rates for major cities, but cautioned that figures may fluctuate widely because they are based on small statistical samples (Previous month in brackets): -St. John’s, N.L., 0.9 (1.1) -Charlottetown-Summerside, -0.5 (-0.8) -Halifax, -0.8 (-0.8) -Saint John, N.B., 0.1 (-0.1) -Quebec, 0.4 (0.4) -Montreal 0.4 (0.4) -Ottawa 0.2 (0.5) -Toronto 0.2 (0.5) -Thunder Bay, Ont., 0.0 (0.3) -Winnipeg, 0.6 (0.7) -Regina 1.8 (1.5) -Saskatoon 0.7 (0.4) -Edmonton -1.2 (-0.2) -Calgary -1.5 (-0.7) -Vancouver -0.5 (0.1) -Victoria -0.4 (0.4)


July 17, 2009

Jim Kovacs President of the Chatham Kent Real Estate Board said the real estate market in Chatham Kent hurt by the economy is on the mend.

Overall trend for sales activity continues to improve.

MLS homes sales were up 18 per cent in June compared to the previous month, the largest gain over this period in four years, he said.

Dollar value was $19.3 million down 10 per cent from one year earlier. 

Average residential price for a home was $140,107–

Buyers who delayed getting into the market earlier this year are jumping off the fence Kovacs said. 

(this information taken from Chatham Daily News article which appeared July 16, 2009, Bob Boughner writer).


July 15, 2009

Sales of existing homes in Canada jumped 31.5 percent in the second quarter from the first and saw their first year-over-year quarterly increase since before the peak of the financial crisis, the Canadian Real Estate Association said on Tuesday. The industry group said actual home sales totaled 147,351 units in the second quarter of 2009, up 1.4 per cent from the same quarter of 2008.

Home sales rose 8.7 percent in June from May on a seasonally adjusted basis. They were up 17.9 percent from June 2008, using nonseasonally adjusted figures.

“This is on par with the record for the month of June set in 2007 and is the fourth highest ever for activity in any month on record,” CREA said in a report.

A total of 41,304 homes changed hands in the month.

The report is the latest piece of evidence showing that consumers are venturing back into the home market, encouraged by low mortgage rates and signs that the worst of the recession is over.

“The recovery in the Canadian housing market continued in earnest in June …,” said Millan Mulraine, economics strategist at TD Securities.

“With prices remaining quite favorable and low borrowing rates enhancing affordability, it is likely that this uptick in sale activity may continue for some time as the recovery in the housing sector takes hold,” he said.

The average home price rose 3.6 percent year-over-year to a record high C$326,613 (about $287,000) in June.

On a quarterly basis, the average price was up 0.5 percent from a year earlier to C$318,696.

But CREA said strong sales activity in a handful of very expensive markets was distorting the national average to make prices look unusually high.

Sales growth in Vancouver, Toronto, Montreal, Calgary and Edmonton contributed the most to the national increase.

The inventory of unsold resale homes — measured as the number of months it would take to sell the stock of houses at current sales rate — fell to its lowest level since August 2007 at 4.2 months.

“Clearing out excess resale inventories is an important step toward witnessing a more material recovery in new housing construction, which is value-added and does impact GDP growth,” said Derek Holt, economist at Scotia Capital.

($1=$1.14 Canadian)


July 8, 2009

Approximately 63% of buyers are willing to pay more to purchase a house that’s in move-in condition

Home Stagers know that the sale begins where the buyer’s eye stops.

  • Out in the street, where they see a beautiful, landscaped yard
  • In the inviting foyer, where they notice plenty of room in the closet
  • Down in the basement, where they find the family TV room with a kids’ play area
  • Home’s that are Staged sell for more money


    July 3, 2009

    The following sites will be where your home is listed when you list with McPhail Realty Services Ltd, Brokerage, Office 519-352-1743,


    We work hard to get lots of exposure for your listing.