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BCREA ECONOMICS NOW Bank of Canada Interest Rate Announcement - October 25, 2017 The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 1 per cent. In the press release accompanying the decision, the Bank noted that inflation has edged up slightly and is expected to return to its target of 2 per cent in the second half of 2018 while economic growth is forecast to slow in the final six months of this year following a very strong first half. The Bank emphasized that it will be cautious in making future adjustments to its policy rate as it assesses the sensitivity of the economy to higher interest rates. There are several factors influencing the Bank's decision to move to the sidelines. Recent economic data points to a slowing of growth from the soaring heights of the first half of 2017. Moreover, inflation remains muted and newly announced tightening of mortgage regulations will have a significant impact on households, particularly in a rising mortgage rate environment. We expect that the Bank will take a wait and see approach over the next few months as the impact of its previous rate tightening takes hold. For inquiries regarding statistical and economics-related news releases, please contact:
Cameron Muir: Chief Economist 604.742.2780 [email protected] Brendon Ogmundson: Economist 604.742.2796 [email protected] The Housing Market Update video podcast is produced monthly by the British Columbia Real Estate Association. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: "Copyright British Columbia Real Estate Association. Reprinted with permission." BCREA makes no guarantees as to the accuracy or completeness of this information. Copyright© British Columbia Real Estate Association 1420 – 701 Georgia Street West PO Box 10123, Pacific Centre Vancouver, BC V7Y 1C6 Phone 604.683.7702 Fax 604.683.8601 www.bcrea.bc.ca [email protected] To subscribe to receive other BCREA publications such as this one, to unsubscribe, or to update your email address or current subscription list, click here. BCREA ECONOMICS NOW Canadian Retail Sales and Inflation - October 20, 2017 Canadian inflation, as measured by the Consumer Price Index (CPI), registered 1.6 per cent in the 12 months to September, up from 1.4 per cent in August. The Bank of Canada's three measures of trend inflation were largely unchanged, averaging 1.6 per cent. In BC, provincial consumer price inflation was 2.0 per cent in the 12 months to September. Canadian retail sales declined 0.3 per cent on a monthly basis in August but were 6.9 per cent higher year-over-year. Sales were down in 8 of 11 retail sub-sectors and excluding the impact of higher gas prices and rising motor vehicle sales, the retail sector was down 1.3 per cent. In BC, after five straight monthly increases, sales fell 1 per cent on a monthly basis, but were up more than 10 per cent compared to September last year. Given that incoming economic data has been signalling a slowing of the economy and inflation is still essentially treading water below the Bank's 2 per cent target, not to mention the tightening of mortgage regulations by OSFI, we expect that the Bank of Canada will stay on the sidelines at its upcoming October 25th meeting. For inquiries regarding statistical and economics-related news releases, please contact:
Cameron Muir: Chief Economist 604.742.2780 [email protected] Brendon Ogmundson: Economist 604.742.2796 [email protected] The Housing Market Update video podcast is produced monthly by the British Columbia Real Estate Association. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: "Copyright British Columbia Real Estate Association. Reprinted with permission." BCREA makes no guarantees as to the accuracy or completeness of this information. Copyright© British Columbia Real Estate Association 1420 – 701 Georgia Street West PO Box 10123, Pacific Centre Vancouver, BC V7Y 1C6 Phone 604.683.7702 Fax 604.683.8601 www.bcrea.bc.ca [email protected] To subscribe to receive other BCREA publications such as this one, to unsubscribe, or to update your email address or current subscription list, click here. BCREA ECONOMICS NOW Canadian Manufacturing Sales - October 18, 2017 Canadian manufacturing sales rebounded 1.6 per cent in August following two consecutive months of falling output. Sales were up in only 8 of 21 manufacturing sub-sectors, with the majority of growth arising due to higher sales in the transportation equipment and energy sectors. In BC, manufacturing sales increased 0.8 per cent on a monthly basis and were up 5.2 per cent year-over-year. Strong gains continued in the wood products sector, along with very strong growth in machinery, and transportation equipment manufacturing. A growing manufacturing base has helped push employment higher across the province, supporting housing demand making strong contributions to BC's economy in 2017. For inquiries regarding statistical and economics-related news releases, please contact:
Cameron Muir: Chief Economist 604.742.2780 [email protected] Brendon Ogmundson: Economist 604.742.2796 [email protected] The Housing Market Update video podcast is produced monthly by the British Columbia Real Estate Association. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: "Copyright British Columbia Real Estate Association. Reprinted with permission." BCREA makes no guarantees as to the accuracy or completeness of this information. Copyright© British Columbia Real Estate Association 1420 – 701 Georgia Street West PO Box 10123, Pacific Centre Vancouver, BC V7Y 1C6 Phone 604.683.7702 Fax 604.683.8601 www.bcrea.bc.ca [email protected] To subscribe to receive other BCREA publications such as this one, to unsubscribe, or to update your email address or current subscription list, click here.  For the complete news release, including detailed statistics, click here. For immediate release BC Home Sales Ratchet Higher in September Vancouver, BC – October 12, 2017. The . The British Columbia Real Estate Association (BCREA) reports that a total of 8,340 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in September, an increase of 9.9 per cent from the same period last year. Total sales dollar volume was $5.8 billion, up 30.2 per cent from September 2016. The average MLS® residential price in the province was $693,774, up 18.5 per cent from September 2016. “BC home sales rose nearly 5 per cent from August on a seasonally adjusted basis," said Cameron Muir, BCREA Chief Economist. "Total active listings on the market continue to trend at ten-year lows in most BC regions, limiting unit sales and pushing home prices higher. While the economic fundamentals support elevated housing demand, rising home prices are eroding affordability, particularly for first-time buyers." Year-to-date, BC residential sales dollar volume was down 12.8 per cent to $57.6 billion, when compared with the same period in 2016. Residential unit sales declined 13 per cent to 81,608 units, while the average MLS® residential price was down 0.2 per cent to $705,501. For inquiries regarding statistical and economics-related news releases, please contact:
Cameron Muir: Chief Economist 604.742.2780 [email protected] BCREA is the professional association for more than 20,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients. To demonstrate the profession's commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods. For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada's real estate boards to ensure maximum exposure of properties listed for sale. To subscribe to receive other BCREA publications such as this one, to unsubscribe, or to update your email address or current subscription list, click here. BCREA ECONOMICS NOW Canadian Housing Starts - October 10, 2017 Canadian housing starts decreased by 4 per cent in September to 217,118 units at a seasonally adjusted annual rate (SAAR). The six-month trend in Canadian housing starts also declined to 214,821 units SAAR. New home construction in BC rose 6 per cent on a monthly basis to 37,470 units SAAR but was down 18 per cent on a year-over-year basis. Single detached starts were flat compared to one year ago while multiple unit starts declined 24 per cent year-over-year. Looking at census metropolitan areas (CMA) in BC:
For inquiries regarding statistical and economics-related news releases, please contact:
Cameron Muir: Chief Economist 604.742.2780 [email protected] Brendon Ogmundson: Economist 604.742.2796 [email protected] The Housing Market Update video podcast is produced monthly by the British Columbia Real Estate Association. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: "Copyright British Columbia Real Estate Association. Reprinted with permission." BCREA makes no guarantees as to the accuracy or completeness of this information. Copyright© British Columbia Real Estate Association 1420 – 701 Georgia Street West PO Box 10123, Pacific Centre Vancouver, BC V7Y 1C6 Phone 604.683.7702 Fax 604.683.8601 www.bcrea.bc.ca [email protected] To subscribe to receive other BCREA publications such as this one, to unsubscribe, or to update your email address or current subscription list, click here. BCREA ECONOMICS NOW Canadian Employment - October 6, 2017 Canadian employment increased by 10,000 jobs in September while the the national unemployment rate remained steady at 6.2 per cent. In the twelve months to August, employment in Canada is up 1.8 per cent, or 320,000 jobs. Somewhat tepid job growth along with slumping exports and flat real GDP in recent months means the Bank of Canada will very likely hold off on raising rates at its October meeting. In BC, employment declined for a third consecutive month, falling by 6,700 jobs in September. Full-time employment was up by 5,000 jobs but an 11,600 decrease in part-time work more than offset those gains. Over the past twelve months, the level of employment in BC is up 3.6 per cent. Despite three months of falling employment, the provincial unemployment rate continued to slide lower due to declining participation in the labour market. The BC unemployment rate fell 0.2 points to 4.9 per cent, the lowest rate since September 2008. For inquiries regarding statistical and economics-related news releases, please contact:
Cameron Muir: Chief Economist 604.742.2780 [email protected] Brendon Ogmundson: Economist 604.742.2796 [email protected] The Housing Market Update video podcast is produced monthly by the British Columbia Real Estate Association. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: "Copyright British Columbia Real Estate Association. Reprinted with permission." BCREA makes no guarantees as to the accuracy or completeness of this information. Copyright© British Columbia Real Estate Association 1420 – 701 Georgia Street West PO Box 10123, Pacific Centre Vancouver, BC V7Y 1C6 Phone 604.683.7702 Fax 604.683.8601 www.bcrea.bc.ca [email protected] To subscribe to receive other BCREA publications such as this one, to unsubscribe, or to update your email address or current subscription list, click here. |