On a seasonally adjusted basis, home sales decreased 12.6% from March to April, a second monthly decline in a row. Despite this pullback, the resale market remained very active on a historical basis, standing above the historically high level of 45K now for 22 consecutive months.
This seems to be the beginning of a downward trend as 80% of covered markets experienced a decline during the month.
The recent drop in the resale market is in part due to the increase in fixed mortgage interest rates which are consequently leading to more restrictive stress tests. The effect on variable rates should begin to be felt in the coming months and accentuate the slowdown.
New listings decreased by 2.2% during the month. However, the reduction in sales compensated for the decrease in new properties for sale, so that the number of months of inventory rose from 1.9 to 2.2 months in April.
Based on the active-listings-to-sales ratio, market conditions loosened during the month but the housing market continued to be tight in 8 of the 10 provinces, with only Saskatchewan and B.C. (the latter switched this month) indicating a balanced market.
Housing starts in Canada increased by 18.9K in April to 267.3K (seasonally adjusted and annualized), the strongest print since November 2021 (at 305.9K) and above consensus expectations calling for a 245.7K print. All told, housing starts continue to stay well above the historical average.
The Teranet-National Bank Composite National House Price Index increased 2.0% in March compared to February after seasonal adjustment, the second-highest monthly increase on record. Ten of the 11 markets in the composite index were up during the month: Halifax (5.4%), Hamilton (3.3%), Toronto (2.7%), Ottawa-Gatineau (2.4%), Victoria (1.9%), Vancouver (1.5%), Winnipeg (2.4%), Montreal (1.1%), Edmonton (0.6%) and Calgary (0.5%). Only Quebec City was down (-0.6%).
Source: https://www.nbc.ca/content/dam/bnc/en/rates-and-analysis/economic-analysis/economic-news-resale-market.pdf
(NC) A vacation should be a time of rest and relaxation away from the hectic pace of work and daily life. But it can also become a time with a lot of expenses that may prevent you from enjoying the moment.
To make sure you don’t ruin your vacation with worries about unexpected spending, prepare a budget for the activities you would like. This way you can set limits on your spending, identify ways to reduce costs, ensure you spend within your means, feel in control and, most importantly, reduce your stress.
The same principles apply to a vacation budget as to your regular spending. Make a list of your planned expenses and divide them into needs and wants. Consider required expenses such as accommodation, food, gas, and travel insurance. Wants might include things like guided tours, boat rides and eating at the best restaurants. When considering the fun stuff, think about what’s important to you and what you can live without. Also, include a cushion for the unexpected. All this will allow you to better estimate how much money you’ll need and plan ahead to put that amount aside.
The Financial Consumer Agency of Canada has a free, easy-to-use online budget planner that can help you prepare. And when you’re on your vacation, watch for new electronic alerts from your bank to help warn you about overspending. By June 30th, 2022, Canadian banks must send alerts to customers when they have $100 left in their chequing account or come within $100 of their credit card limit. You can contact your bank to customize this minimum amount, so you’ll receive a text, email or app notification if you go past it.
Overall, your vacation should be a time of relaxation and adventure, and thinking about your spending in the planning phase can help it stay that way.
Find more information at canada.ca/money.
www.newscanada.com
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