Slide in new-home prices slows
Filed Under Main Content · Tagged: Calgary, Economist, Edmonton, Hirsch, Previous Year, Statistics Canada, Vancouver Sun
The Vancouver Sun- The price of a new home in Edmonton remained flat in May from a year ago, according to data released by Statistics Canada Thursday.
Edmonton registered only a 0.1-per-cent 12-month dip in the contractors’ selling price, the federal agency said Thursday.
Since July 2008, prices have fallen each month by as much as 12 per cent from the previous year.
ATB Financial senior economist Todd Hirsch said both Edmonton and Calgary have seen new-home prices trending up in the first half of 2010 after spending much of the past two years priced below the previous year…
Slide in new-home prices slows
Wealth effect is anything but
Filed Under Main Content · Tagged: Assets, Bank Of Canada, Consecutive Quarter, Economist, First Quarter, Household, Net Worth, Ottawa Citizen, Recession, Royal Bank Of Canada, Statistics Canada, Stock Portfolios, Trillion, Wealth Effect
Ottawa Citizen- There is something about our stock portfolios and homes being worth more that makes us want to spend.
“It’s called the wealth effect. If you feel you have more, you are more willing to spend more,” says David Onyett-Jeffries, an economist with Royal Bank of Canada.
“When people see their house value increase, they are more willing to spend because there is less requirement to save. They view these assets as being marketable and gaining value.”
Statistics Canada said this week that household net worth increased by 1.3% in the first quarter to $6-trillion — a fourth consecutive quarter of improving wealth. Household net worth has recovered 96% of what was lost during the recession…
Household worth rebounds after recession
Filed Under Main Content · Tagged: Asset Prices, Assets, Borrowings, Canadians, Decline, Economic Downturn, Economics Research, Economist, Household Debt, Jeffries, Liabilities, Low Interest Rates, Net Worth, Rbc, Rebounds, Recession, Residential Real Estate, Rising Stocks, Statistics Canada, Trillion
Times Colonist- Rising stocks and home prices have helped restore almost all of the value Canadians lost in household net worth during the economic downturn.
Household net worth rose 1.3%, or by $74-billion, to $6-trillion, as the growth in the value of assets, particularly equities and residential real estate, exceeded the increase in liabilities, Statistics Canada reported Monday.
“This marks the fourth consecutive quarterly improvement in household net worth and reflects a 96 per cent recovery off the net worth lost during the recent economic downturn,” David Onyett-Jeffries, economist at RBC Economics Research, wrote in an analysis.
“The increase of household net worth continues to repair the cumulative $552-billion decline.”
Household debt has also risen as low interest rates have encouraged Canadians to increase borrowings, but that has led to strengthening in demand and asset prices, particularly housing, said Mr. Onyett-Jeffries…
Household worth rebounds after recession
Housing prices set to fall: CIBC
Filed Under Main Content · Tagged: Bank Of Commerce, Banks Canada, British Columbia, Canadian Imperial Bank, Canadian Imperial Bank Of Commerce, Cibc, Crash, Demographic Changes, Economist, House Prices, Imperial Bank Of Commerce, Market Fundamentals, Vancouver Sun
Vancouver Sun- A new report from one of the country’s major banks says house prices in Canada are sitting 14 per cent over their “fair” value.
The report from Canadian Imperial Bank of Commerce says the average price of a home has risen 23 per cent since reaching its cyclical low in January 2009.
British Columbia and Alberta homes are the most overpriced, at 25 per cent above their fair value. CIBC establishes what it calls fair value from market fundamentals that include income, rent and demographic changes.
“This doesn’t mean that house prices are going to crash tomorrow,” said Benjamin Tal, senior economist with the bank. “I’m saying they probably will go down by five per cent or 10 per cent…”
