PERSONAL CHOICE NEWSLETTER - JANUARY 2023

For the first time since the financial crisis of 2008, all of the cities covered by the Teranet-National Bank HPI have seen prices decline from their peak reached over the past 12 months, marking the end of a prosperous period for the Canadian real estate market. Indeed, price declines were observed in all markets covered, with the last cities on the list to experience contractions being Calgary, Edmonton, Lethbridge and Trois-Rivieres. Since its peak in May 2022, the national composite index has already fallen by 9.0%, almost as much as during the last financial crisis (-9.2%). With the Bank of Canada raising its key interest rate again in December and mortgage rates remaining high, we believe that the impact on property prices should continue to be felt in the coming months. All in all, we still anticipate a total correction of about 15% in house prices nationally by the end of 2023, assuming that the policy rate does not increase further and begins to decline in the second half of 2023. Although corrections are being observed in the vast majority of markets covered by the index, the CMAs that have experienced the most significant price growth over the past two years are also those that have recorded the sharpest declines to date. Ontario, British Columbia, and the Maritimes therefore appear to be more vulnerable, while the Prairie markets are less so, helped by a buoyant economic context.
HIGHLIGHTS:
The Teranet-National Bank Composite National House Price Index™ decreased by 1.1% in November compared to the previous month and after adjusting for seasonal effects, a fifth consecutive monthly decrease.
After adjusting for seasonal effects, 8 of the 11 markets in the composite index were down during the month: Montreal (-2.2%), Hamilton (-1.9%), Vancouver (-1.5%), Ottawa-Gatineau (-1.3%), Winnipeg (-1.1%), Quebec City (-1.1%), Toronto (-0.9%) and Calgary (-0.8%). Conversely, the Halifax (+1.6%), Victoria (+0.9%) and Edmonton (+0.3%) markets were up.
From November 2021 to November 2022, the composite index increased by 2.0%, the lowest annual growth since November 2019. This growth was driven by Calgary (14.6%), Edmonton (7.6%), Halifax (6.2%), Quebec City (5.7%), Montreal (4.7%) and Victoria (3.0%). Growth was lower than average in Winnipeg (1.2%), Vancouver (0.7%) and Ottawa-Gatineau (0.4%), while it remained stable in Toronto and was down in Hamilton (-0.9%).
Source: National Bank of Canada

(NC) As we turn the page on the calendar and another year, it’s the perfect time to get a head start on financial planning for the coming year.
Start a budget
The only way to truly stay on top of your finances is to create a budget where you track all of your income and expenses. That way, you can immediately see if you’re overspending and narrow in on areas where you can pare back. You can use a free online tool, such as the Financial Consumer Agency of Canada’s Budget Planner, or create your own customized spreadsheet.
Create a filing system for your taxes
Rather than digging through the proverbial – or, in some cases, literal – shoebox a few days before your taxes are due (May 1, 2023), organize them in physical or digital folders throughout the year.
You’ll need to have copies of receipts for any charitable donations you made, childcare expenses, tuition and any medical bills that aren’t covered by a healthcare plan. There are also credits for home office expenses if you’re working remotely, and for public transit costs.
If you’re self-employed, you’ll need to keep copies of any expenses you incur to earn a living. There are numerous apps and tools you can use to digitize all your receipts and have them automatically recorded.
Set up reminders for bill payments
We all have a mix of recurring monthly and annual bill payments. Put reminder notices – with alerts – into your calendar or set up those payments for automatic withdrawal. If you opt for the automated route, check your bank account regularly to make sure you have sufficient funds for all the payments.
Run a cyber safety check
All your planning will go to waste if hackers get access to your banking information. But there are easy steps you can take to protect yourself. Make sure your personal device has antivirus software to scan for any abnormal activities. Install any software updates as soon as they’re available and enable automatic updates where possible. Use different passwords for each of your accounts.
Do not respond to any unsolicited emails that ask you to enter your password or give up personal information. You can usually tell if a message is spam because there are spelling errors in the message, or the email address does not come from the organization it’s claiming to be. If in doubt, contact the organization to verify the email.
Learn more at getcybersafe.ca.
www.newscanada.com

PERSONAL CHOICE NEWSLETTER – JANUARY 2023

Canada: Prices down from their peak across the country

How to get your finances on track this year