According to statistics released by The Canadian Real Estate Association (CREA), national resale housing activity edged higher in March 2012.

Highlights:

• Home sales rose 2.5% from February to March.
• Actual (not seasonally adjusted) activity stood 1.6% above levels in March 2011, the smallest year-over-year increase since last April.
• The number of newly listed homes eased 0.3% from February to March.
• While still well balanced, the national housing market tightened due to the rise in activity.
• The national average home price edged down 0.5% on a year-over-year basis in March.

Sales activity over MLS® Systems of Canadian real estate Boards and Associations rose 2.5 per cent from February to March 2012. The increase lifted national activity to its highest monthly level since April 2010.

Activity in March was up from the previous month in two-thirds of all local markets, with Toronto, Calgary, and Edmonton contributing most to the national increase.

Actual (not seasonally adjusted) activity stood 1.6 per cent above levels in March 2011, the smallest year-over-year increase since last April. It reflects moderate gains in a number of major centres, including Toronto, Calgary, Montreal, Ottawa, and Quebec City. Increases in these housing markets offset larger declines in Vancouver and the Fraser Valley, where activity last year ran at unusually strong levels.

A total of 108,373 homes traded hands in the first three months of the year. This is 5.0 per cent above the five-year average for first quarter sales, 3.8 per cent above the 10-year average, and 4.4 per cent above activity in the first quarter of 2011.

New listings were little changed following their uptick in February, having edged lower by 0.3 per cent on a month-over-month basis in March. The number of newly listed homes declined from the previous month in just over half of all local Canadian housing markets, and rose in almost all of the remainder.

“The spring housing market is off to a good start,” said Wayne Moen, CREA’s President. “The number of sales and newly listed properties are up from levels last year, and the vast majority of housing markets remain balanced. That said, all housing is local, so buyers and sellers should talk to their local REALTOR® to understand current and prospective trends where they live.”

The national housing market remains well balanced, although the monthly increase in sales activity caused the balance between supply and demand to tighten slightly.

The national sales-to-new listings ratio, a measure of market balance, stood at 55.1 per cent in March. This remains firmly in balanced market territory, but is up from 53.6 per cent in February. Based on a ratio of between 40 and 60 per cent, more than half of local markets were balanced in March.

The number of months of inventory stood at 5.7 at the end of March on a national basis, down slightly from 5.8 months in February. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand.

The actual (not seasonally adjusted) national average price for homes sold in March 2012 was $369,677, representing a decline of one half of a percentage point from the same month last year.

“Average prices are up from year-ago levels in most large urban centres,” said Gregory Klump, CREA’s Chief Economist. “The slight decline in the national average price points to a tug of war between Toronto and Vancouver from the standpoint of their sales mix compared to last year.”

“The national average price was skewed higher last spring by record level high-end home sales in some of Vancouver’s priciest neighbourhoods. It was expected that this would not recur this spring, which the latest sales figures confirm. The decline in average price reflects the change in Vancouver’s sales mix, not housing price deflation.”

“At the same time, overall home sales activity in Toronto is stronger than it was last spring, and higher-end home sales are up from year-ago levels. Being by far the most active housing market in Canada, Toronto represents the single biggest factor supporting national average price compared to last year.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.

The pace of Canadian housing starts was brisk in March, with construction of apartments and condos remaining strong — aided by continued low interest rates and unseasonably warm weather.

Canada Mortgage and Housing Corp. estimates in its March report that there were 14,517 actual starts last month, which translates to a seasonally adjusted annual rate of 215,600 units.

The adjusted figure irons out monthly variations and is calculated as if the March starts continued at the same pace for a year.

March's seasonally adjusted rate was up from 205,300 units in February — a five per cent increase.

CIBC World Markets said housing starts were higher than expected.

"Although we expect starts to soften in due course, the latest figures suggests that, for time being, the housing sector still has a considerable amount of energy, aided by low financing costs," CIBC said.

Meanwhile, the CMHC said the increase in March starts was due to a strong increase in multiple-unit starts, particularly in Ontario and the Prairies, partly offset by decreased multiple starts in British Columbia and Quebec.

Single-detached starts decreased marginally across the country. Both components remained well above year-earlier levels, CIBC noted.

Urban starts rose by 4.2 per cent in March to 192,100 units on a seasonally adjusted annual basis.

The Bank of Canada announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The profile for global economic growth has improved since the Bank released its January Monetary Policy Report (MPR). Europe is expected to emerge slowly from recession in the second half of 2012, although the risks around this outlook remain high.  The profile for U.S. growth is slightly stronger, reflecting the balance of somewhat improved labour markets, financial conditions and confidence on the one hand, and emerging fiscal consolidation and ongoing household deleveraging on the other.  Economic activity in emerging-market economies is expected to moderate to a still-robust pace over the projection horizon, supported by an easing of macroeconomic policies.  Improved global economic prospects, supply disruptions and geopolitical risks have kept commodity prices elevated.  In particular, the international price of oil has risen further and is now considerably higher than that received by Canadian producers.  If sustained, these oil price developments could dampen the improvement in economic momentum.

Overall, economic momentum in Canada is slightly firmer than the Bank had expected in January. The external headwinds facing Canada have abated somewhat, with the U.S. recovery more resilient and financial conditions more supportive than previously anticipated.  As a result, business and household confidence are improving faster than forecast in January. The Bank projects that private domestic demand will account for almost all of Canada’s economic growth over the projection horizon.  Household spending is expected to remain high relative to GDP as households add to their debt burden, which remains the biggest domestic risk.  Business investment is projected to remain robust, reflecting solid balance sheets, very favourable credit conditions, continuing strong terms of trade and heightened competitive pressures.  The contribution of government spending to growth is expected to be quite modest over the projection horizon, in line with recent federal and provincial budgets. The recovery in net exports is likely to remain weak in light of modest external demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.

The Bank projects that the economy will grow by 2.4 per cent in both 2012 and 2013 before moderating to 2.2 per cent in 2014. The degree of economic slack has been somewhat smaller than the Bank had anticipated in January, and the economy is now expected to return to full capacity in the first half of 2013.

As a result of this reduced slack and higher gasoline prices, the profile for inflation is expected to be somewhat firmer than anticipated in January.  After moderating this quarter, total CPI inflation is expected, along with core inflation, to be around 2 per cent over the balance of the projection horizon as the economy reaches its production potential, the growth of labour compensation remains moderate, and inflation expectations stay well-anchored.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. In light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target over the medium term. The timing and degree of any such withdrawal will be weighed carefully against domestic and global economic developments.

With the Bank of Canada hinting that it might raise interest rates earlier than expected, the time is ripe for scary news stories about the impact on borrowers. It's safe to take most of them with a grain of salt.

First, any increases won't be starting tomorrow, or even next month. The guessing is that they'll begin around the end of this year. And they'll be gradual.

Most important of all, rising rates are actually good news, since they're based on the expectation of stronger growth in output, incomes and employment.

"If rates are rising by the end of this year, it will only be because we've had some good news on the economy,'' notes Avery Shenfeld, chief economist at CIBC World Markets.

That's not always true, of course. Sometimes in the past, rising rates meant that inflation was getting out of hand, requiring the Bank of Canada to crush this trend by squelching our spending harshly. But today, that's far from the case.

No, what we're seeing now is a much happier story than the one you'll see in most articles about rising interest rates. It's the story of an economy that's leaving behind the problems of recession and financial crisis and beginning to grapple with the much more pleasant problems of prosperity, including the need to ease off on exceptional monetary stimulus.

This country has done exceptionally well compared with most of our counterparts, but we did have to grapple with unemployment that shot up to 8.7 per cent at one point and a global economy whose collapse devastated our exports.

Today, though, unemployment is down to 7.2 per cent, thanks largely to a healthy Canadian banking system and the willingness of Canadians to ramp up big-ticket purchases like homes and cars thanks to bargain interest rates.

Even our exports are now recovering nicely, thanks to a long-delayed recovery in the U.S.

For this reason, economic forecasters, including those at the Bank of Canada, have been ratcheting up their growth expectations for Canada. The central bank expects growth to hit 2.4 per cent this year, up from its January forecast of just two per cent.

The International Monetary Fund chimed in with a similar upgrade for its Canadian forecast, to 2.1 per cent from a prediction of 1.7 per cent three months ago.

Some of the improvement stems from diminished fears that the European economy will implode and higher hopes for the improved growth outlook in the U.S.

But Canadian behaviour plays a part, too. Forecasters see business investment and consumer spending both boosting this country's growth significantly.

Since a good deal of that upbeat consumer outlook comes from a healthy housing market, however, it also raises questions about the record-high debt level of Canadian households.

Some think that this means we have a housing bubble that's just waiting to burst, perhaps triggered by rising mortgage interest rates.

Cooler heads point out that this is nonsense. First, it would take a big jump in interest rates to stress households so much that they'd start defaulting on mortgage payments.

"It's clear that the Bank of Canada is not going to rush headlong into a sizable tightening of monetary policy,'' says Shenfeld. He and other analysts expect rates to rise, if they do, by no more than 3/4 to one per cent over a period of several months before the bank pauses to see how this is being digested.

Second, Canada's mortgage market is nothing like the rickety, fraud-infested mess that came crashing down in the U.S. several years ago. Mortgages here are backed by fairly tough lending standards and often by government mortgage insurance.

At the moment, credit markets remain robustly healthy, despite the high debt burden. Bankruptcy rates are very low and mortgage defaults "extremely low,'' says Shenfeld.

And don't forget the upside of rising interest rates. There are many older Canadians who depend on their savings to provide retirement income and who don't want to venture too far into the uncertainties of the stock market.

The ultralow rates of recent years have been cruel to such savers, but there's now hope that GIC and savings-account rates will begin to improve over the next couple of years.

Once spring has sprung, take some time to give your home a checkup along with its annual spring-cleaning. Adding these home maintenance tips to your routine can help your house operate more efficiently.

Outside The House

Check The A/C
Have a qualified HVAC contractor come out to give your air-conditioning system a tune-up. To help lower your energy bills, do this every year to ensure the system is running at its manufacturer-rated efficiency. Also make sure to inspect your system’s condensate drain hose, especially if you live in a humid climate. This hose could become clogged with algae and sediment, and your contractor may charge you more to clean it out. Avoid this extra cost by checking the hose periodically yourself. Use a wet-vac to suction any blockage out from it.

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The Bank of Canada kept its trend-setting Bank Rate at 1.25 per cent on October 25, 2011. This marks the ninth consecutive announcement in which interest rates have been held steady.

The tone of the accompanying statement was very dovish, with the Bank noting that “the global economy has slowed markedly as several downside risks to the projection outlined in the Bank’s July Monetary Policy Report (MPR) have been realized.”

Of particular note, the Bank said it now expects a “brief recession” in the Eurozone. The Bank remains of the opinion that the euro-area crisis will be contained, but flagged obvious downside risks to that assumption.

As a result of this and other factors, the Bank has downgraded its forecast Canadian economic growth this year (2.1% compared to 2.8% in the July MPR) and for 2012 (1.9% compared to 2.6% in the July MPR).

That said, the outlook for growth in 2013 was upgraded to 2.9% from 2.1%, indicating the Bank believes that anticipated stronger growth will eventually be achieved. Along with the return of more robust economic activity being pushed further out into the future, core inflation is now expected to remain below the Bank’s 2% target until the end of 2013.

What it all means is that interest rates will likely be on hold even longer. Expectations as to how long it would be before the Bank hikes rates had previously centered around the fall  of 2012, although it will now more likely be into 2013 before the Bank begins to tighten monetary policy from current levels.

As of October 25, 2011, the advertised five-year lending rate stood at 5.29 per cent. This is down 0.1 percentage points from 5.39 per cent on September 7, when the Bank made its last policy interest rate announcement.

The Bank will make its next scheduled rate announcement on December 6th, 2011.

Housing outlook

A new report on Canada's housing market carries this notable title: "Slowdown postponed."

The report from National Bank Financial is in line with other forecasts, projecting the market will slow in 2012 and 2013, but it won't crash. National Bank's Shubha Khan also upgraded his projection for this year because of a stronger-than-expected third quarter and a longer-than-expected timeline for interest rate hikes in Canada.

"Given the resulting deterioration in the global economic outlook, the Bank of Canada is now expected to leave its policy rate unchanged until late 2012 or early 2013," Mr. Khan said.

"Mortgage rates will almost certainly linger near their current historical lows for at least the next 12 months, which should prevent a pronounced slump in housing market activity. We previously expected rate hikes would materialize as early as [the fourth quarter of] 2011."

Mr. Khan projects an 8-per-cent gain in the dollar value of home sales this year, a 3-per-cent dip in 2012 and a 5-per-cent decline a year later.

"Given our interest rate outlook, housing affordability is projected to be stable through 2012, which suggests that home prices are unlikely to adjust materially next year," Mr. Khan added in a discussion about the debt service ratio, or DSR, for mortgages.

The DSR, or what's needed in terms of a household's disposable income to meet its monthly payments, now stands at 21.6 per cent, compared to a 20-year average of 20 per cent.

"In 2013, however, rising interest rates will result in a significant deterioration of the DSR ... pricing many potential buyers out of the market unless (i) home prices decline or (ii) households’ appetite for credit expands (i.e. households tolerate a higher DSR)," he said in the report.

"With the weak global economy weighing on consumer confidence and non-mortgage credit at record levels, this appetite is unlikely to grow. Therefore, home prices will have to fall, in our view ... we estimate that the average home price will have to decline by around 9 per cent from current levels if, as we expect, mortgage rates increase by 100 to 150 basis points in 2013."

OTTAWA – October 17, 2011 – According to statistics released by The Canadian Real Estate Association (CREA), national resale housing activity picked up in September 2011.

Highlights:

• Sales activity rose 2.7 per cent in September from the previous month.
• Holding in line with the ten-year average, activity during the first nine months of this year pulled ahead of sales over the same period last year.
• The number of newly listed homes held steady when compared to the previous month.
• The national housing market tightened in September from the month before, but remains firmly entrenched in balanced territory.
• The national average price posted the smallest year-over-year increase since January.
National sales activity rose 2.7 per cent in September when compared to August, and follows three months of stable activity. September’s increase reflects strengthened activity in a number of major markets, led by Toronto. The monthly increase pushed national sales to its highest level since recently tightened mortgage regulations dampened sales earlier this year.

Actual (not seasonally adjusted) national sales activity came in 11 per cent above levels in September 2010. As was the case over the summer, the year-over-year increase reflects weakened activity one year ago.

A total of 361,749 homes have traded hands via Canadian MLS® Systems to date this year. This is 1.2 per cent above levels for the same period in 2010, and in line with the ten-year average.

“The Canadian housing market remains a bright spot against a backdrop of mixed headline news about the global economy,” said Gary Morse, CREA President. “Low mortgage rates continue to draw buyers to the housing market, while recently tightened mortgage regulations are working as intended. That said, housing market trends often diverge from national trends due to local factors, so buyers and sellers should talk to a local REALTOR® to understand housing market trends at play where they live.”

The number of newly listed homes nationally was little changed from each of the previous two months. New listings were up from the previous month in a number of major markets including Toronto, Montreal, Ottawa, Oakville and Vancouver, offset by fewer new listings in other markets including Edmonton and the Fraser Valley.

The monthly rise in sales resulted in a tighter national housing market that remains firmly planted in balanced territory. The national sales-to-new listings ratio, a measure of market balance, stood at 52.8 per cent in September, up from 51.6 per cent in August.

Based on a sales-to-new listings ratio of between 40 to 60 percent, nearly two-thirds of all local markets in Canada were in balanced market territory in September, with an even split of buyer’s and seller’s markets among the remainder.

The number of months of inventory stood at 6.1 months at the end of September on a national basis, little changed from the end of August (6.2 months). It represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of balance between housing supply and demand. Months of inventory have held steady at about six months since April.

The actual (not seasonally adjusted) national average price for homes sold in September 2011 stood at just under $352,600, remaining below record level heights reached earlier this year. While up 6.5 per cent from September 2010, the year-over-year increase is the smallest since January.

“Canada’s housing market remains stable amid continuing financial market volatility, contributing to Canadians’ confidence in the economy and providing support for Canadian economic growth,” said Gregory Klump, CREA’s Chief Economist. “Interest rates are expected to remain low for longer, and evidence suggests that recent changes to mortgage regulations are preventing the kind of excesses they were designed to avert. Both of these developments are good news for the housing market.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 99,000 REALTORS® working through more than 100 real estate Boards and Associations.

OTTAWA, October 11, 2011 — The seasonally adjusted annual rate of housing starts was 205,900 units in September, according to Canada Mortgage and Housing Corporation (CMHC). This is up from 191,900 units in August 2011.

“Housing starts picked up in September due to an increase in multiple starts in the Atlantic region, Quebec and in British Columbia,” said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre. “Multiple housing starts are expected to move back towards levels consistent with demographic fundamentals in the near term.”

The seasonally adjusted annual rate of urban starts increased by 8.0 per cent to 185,900 units in September. Multiple urban starts were up by 14.2 per cent to 118,000 units, while urban single starts decreased by 1.5 per cent in September to 67,900 units.

September’s seasonally adjusted annual rate of urban starts increased by 47.0 per cent in the Atlantic region, 32.0 per cent in Quebec and by 18.6 per cent in British Columbia, while urban starts decreased by 3.5 per cent in Ontario and by 12.1 per cent in the Prairie region.

Rural starts were estimated at a seasonally adjusted annual rate of 20,000 units in September.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

Halloween is a fun and exciting time for children, and for adults! However, the excitement of Halloween shouldn¡¯t make us forget about food safety. You should also keep in mind that children with allergies and sensitivities must be especially careful before eating trick-or-treat goodies or certain foods served at Halloween social gatherings.

The following steps will help make Halloween an enjoyable experience for everyone.

Before Trick-or-Treating

• Remind children not to eat any of their collected goodies while out trick-ortreating, until they are inspected by an adult.
• Remind children not to accept and especially not to eat homemade candy or baked goods.
• Give children a snack or light dinner before they go out to help prevent them from munching while trick-ortreating. Don't send them out on an empty stomach!

After Trick-or-Treating

• Throw away homemade candy or baked goods.
• Check all commercially wrapped treats. Throw out any treats that are not wrapped, those in torn or loose packages, or those that have small holes in the wrappers.
• Be cautious before giving children treats that could be potential choking hazards, such as chewy candies, gum, hard candies, lollipops, mini-cup jelly products, peanuts, or small toys. Depending on the size, shape, consistency and composition, mini-cup jelly products may become lodged in the throat and may be difficult to remove.
• Wash fresh fruit thoroughly. Inspect it for holes, including small punctures, and if found, do not let children or adults eat the fruit.
• Remember, when in doubt, throw it out!

Children with Allergies and Sensitivities

Some Halloween treats may contain ingredients that can cause severe adverse reactions in children who have allergies or sensitivities. These treats often include ingredients such as peanuts, tree nuts, milk and egg - some of the most common food allergens.

Some treats, such as chocolate products, may contain allergens that are not declared on the label. The most common undeclared allergens found in chocolate products include peanuts, tree nuts and milk protein. Consuming products with an undeclared allergen can be life-threatening.

You should therefore take the following precautions before allowing children with allergies and sensitivities to eat any Halloween goodies:

• Throw away homemade candy or baked goods.
• Read labels carefully for all commercially wrapped treats.
• Avoid products that do not have a list of ingredients. Bear in mind that Halloween candies do not always have ingredients listed on their labels.
• Avoid products with precautionary labelling (may contain¡± statements).
• Do not allow your children to consume a particular product if you are unsure if it contains an allergen.

Halloween Parties and Food Safety

When preparing or serving food at Halloween parties, it is always important to follow safe food-handling practices. Here are a few tips you should follow to prevent harmful bacteria from spreading and causing foodborne illness.

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OTTAWA – According to statistics¹ released on September 15, 2011 by The Canadian Real Estate Association (CREA), national resale housing activity in August 2011 remained stable for the second consecutive month.

Highlights:

• Sales activity was stable from July to August, but posted another big year-over-year gain reflecting weakened demand last summer.
• Year-to-date sales pulled ahead of 2010 levels for the first time this year, and remain in line with the ten-year average.
• The number of newly listed homes was also little changed from July to August.
• The national housing market stayed firmly entrenched in balanced territory.
• There were more balanced local markets in August than at any other time on record.
• The national average price posted another year-over-year gain in August, but has moderated from elevated levels earlier this year.
• Upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of national activity in Vancouver and Toronto.

For a second consecutive month, national home sales activity held steady in August 2011 when compared to the previous month.

Among major urban centres, Toronto and Ottawa posted a monthly increase in activity while Calgary, Montreal and Vancouver saw activity decline slightly.

“The housing market in Canada remained on a firm footing in August when compared to volatile financial markets,” said Gary Morse, CREA President. “Through their actions, homebuyers are showing that they remain confident about the stability of the Canadian housing market, and recognize that the continuation of low interest rates represents an excellent opportunity to buy their first home or trade up.”

Actual (not seasonally adjusted) sales activity came in 15.8 per cent above national levels reported one year earlier. This was the largest year-over-year increase since last April, but largely reflects weakened activity one year ago.

A total of 324,030 homes have traded hands via Canadian MLS® Systems so far this year. While this stands only marginally above levels in the first eight months of last year, it nevertheless marks the first time this year that year-to-date activity has pulled ahead of 2010 levels.

As has been the case for much of this year, the year-to-date sales figure continues to run in line with the ten-year average.

The number of newly listed homes nationally was also little changed from July to August. This kept the national housing market firmly planted in balanced territory. The national sales-to-new listings ratio, a measure of market balance, stood at 51.6 per cent in August, unchanged compared to July.

Based on a sales-to-new listings ratio of between 40 to 60 per cent, 70 per cent of all local markets in Canada were in balanced market territory in August – a greater percentage than at any other time on record. There were just 12 buyers’ markets in August, which was the lowest figure so far this year.

The number of months of inventory stood at 6.2 months at the end of August on a national basis, which is little changed from the end of July (6.1 months). The national months of inventory figure has been stable at about six months since April. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand.

The actual (not seasonally adjusted) national average price for homes sold in August 2011 stood at $349,916. This is 7.7 per cent above its year-ago level, which marked the low point for 2010.

The national average price has moderated compared to earlier this year, with sales activity in Vancouver, and more recently in Toronto, exerting less of an effect on the national average. Their share of provincial and national sales activity reached unusually elevated levels earlier this year, but has since receded in line with normal seasonal variations.

“Once again, economic and financial market headwinds outside Canada are keeping interest rates lower for longer,” said Gregory Klump, CREA’s Chief Economist. “Those headwinds will likely persist until, and indeed after, fiscal quagmires in the U.S. and Europe are resolved. In the meantime, the Bank of Canada will have ample reason to delay raising interest rates further, which is supportive for the Canadian housing market.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas.

Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.

Further information can be found at http://www.crea.ca/public/news_stats/media.htm.

1 All figures in this release, unless otherwise noted, are seasonally adjusted to remove normal seasonal variation. Removing regular seasonal variations enables analysis of monthly changes and fundamental trends in the data.

Ottawa, Ontario - The Bank of Canada announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The global economic outlook has deteriorated in recent weeks as several downside risks to the projection in the Bank’s July Monetary Policy Report (MPR) have been realized. The European sovereign debt crisis has intensified, a broad range of data has signalled slower global growth, and financial market volatility has increased sharply. Recent benchmark revisions show that the U.S. recession was deeper and its recovery has been shallower than previously reported. In combination with recent economic data, this implies that U.S. growth will be weaker than previously anticipated. The Bank expects that American household spending will be even more subdued in the face of high personal debt burdens, large declines in wealth and tough labour market conditions. Fiscal stimulus in the United States will also soon turn into material fiscal drag. Acute fiscal and financial strains in Europe have triggered a generalized retrenchment from risk-taking and could prompt more severe dislocations in global financial markets. Resolution of these strains will require additional significant initiatives by European authorities. Growth in emerging-market economies has been robust, although its rate and composition will be affected by weakness in major advanced economies. While commodity prices have declined owing to diminished global growth prospects, they remain relatively high.

Largely due to temporary factors, Canadian economic growth stalled in the second quarter. The Bank continues to expect that growth will resume in the second half of this year, led by business investment and household expenditures, although lower wealth and incomes will likely moderate the pace of investment and consumption growth. The supply and price of credit to businesses and households remain very stimulative. However, financial conditions in Canada have tightened somewhat and could tighten further in the event that global financial conditions continue to deteriorate. Net exports are now expected to remain a major source of weakness, reflecting more modest global demand and ongoing competitiveness challenges, in particular the persistent strength of the Canadian dollar.

Slower global economic momentum will dampen domestic resource utilization and inflationary pressures. The Bank expects total CPI inflation to continue to moderate as temporary factors, such as significantly higher food and energy prices, unwind. Core inflation is expected to remain well-contained as labour compensation growth stays modest, productivity recovers, and inflation expectations remain well-anchored.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. In light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.

Canada's annual inflation rate was stronger than expected in August, checking in at 3.1 per cent as consumers paid more for gasoline and groceries.

The August rise followed increases of 2.7 per cent in July and 3.1 per cent in June, Statistics Canada said Wednesday.

Economists had been forecasting a 2.9 per cent year-over-year rate of inflation for August, according to a Reuters survey of 24 forecasts.

The Bank of Canada's closely watched core inflation index rose 1.9 per cent in the 12 months to August, following a 1.6 per cent gain in July. The higher increase in August was mainly due to a rise in prices for passenger vehicle insurance premiums, food purchased from restaurants as well as bakery and cereal products.

The ups and downs of what you spend money onThe central bank aims to keep overall inflation at the two per cent target, the midpoint of its one to three per cent inflation-control target range. The central bank's governor, Mark Carney, said Tuesday that he was not worried about inflation and that he would not raise interest rates.

"Despite the upside surprise to core inflation, the Bank of Canada appears in no rush to tighten given the economic and financial market headwinds that are currently blowing," BMO Financial Group chief economist Sherry Cooper said in commentary. "But the appetite to ease now looks smaller."

Derek Burleton, deputy chief economist at TD Economics, thinks the August inflation rise will be temporary.

"Since August, near-term economic growth prospects globally and in Canada have soured, and world commodity prices have pulled back," Burleton said. "These developments should begin to show up in the September inflation numbers."

Higher gas, food prices

Statistics Canada said gasoline prices went up 22.8 per cent between August 2010 and August 2011, compared with the 23.5 per cent 12-month increase in July. Prices for fuel oil and electricity also rose, while natural gas prices fell.

Food prices went up 4.4 per cent in the 12 months to August, following a 4.3 per cent annual increase in July. Consumers paid 5.0 per cent more for food purchased from stores and 2.7 per cent for restaurant meals.

On a seasonally adjusted monthly basis, consumer prices rose 0.3 per cent from July to August. Economists had expected a rise of 0.1 per cent.

TORONTO – More than half of Canadians feel they are satisfied with their current debt situation, according to a new poll by Royal Bank of Canada.

The RBC Debt Poll finds a majority of Canadians, 67 per cent, are comfortable with their current state of debt, or they have no personal debt at all.

Three-quarters of Canadians surveyed feel they are in better shape with their non-mortgage debt than their friends and neighbours.

The poll reveals demographic information like age and family size is closely linked to debt anxiety. Thirty-nine per cent of 18-to 34-year-olds say they feel anxiety related to their debt, compared to 21 per cent of Canadians 55 and older.

The poll reveals the priorities of most Canadians lie closer to financial security rather than lavish living.

Ninety-three per cent believe paying down debt is more important than, or just as important as, saving for the future.  Four in ten Canadians remain cautious about their financial situation, opting to forgo or delay plans to avoid adding to their debt loads.

Nearly a quarter of those polled say they have postponed a vacation or held off on a big-ticket purchase to avoid falling deeper into debt.

The results indicate Canadians with children are most likely to axe their travel plans, curb their consumption or delay the purchase of a home. Forty eight per cent of parents are far more likely to switch their spending intentions due to debt, compared to the 37 per cent national average.

Cross-Canada highlights

British Columbia: 50 per cent of B.C. residents say saving and investing for the future is as important as paying down debt, the highest rate in the country.

Alberta: Albertans are the most anxious about debt compared to other provinces. They’re also the most likely to revise their long-term plans due to debt concerns.

Prairies: Residents in Saskatchewan and Manitoba lead the country on not changing their plans due to debt concerns. They’re also the most comfortable and happy with their personal debt situation compared to other provinces.

Ontario: 24 per cent of Ontarians said they have no personal debt, above the national average of 22 per cent.

Quebec:  27 per cent of Quebecers say they are in worse shape than their friends and neighbours for non-mortgage debt, tying Alberta for the highest rate in the country.  

Atlantic Canada: East coast Canadians are the most optimistic about their debt situation compared to their friends, neighbours and other provincial averages. 

As the leaves change and the days get shorter, take the time this autumn to prepare for the oncoming cold weather. Ready the furnace for the months of work it will have ahead, and clean out the fireplace. Test them both to ensure they’ll be working when you need the heat. Don’t wait until it’s snowing to clear out your gutters. With upkeep in the fall, you’ll have peace of mind in the winter and more time to hibernate.

Inside The House

Heating System Checkup
Be sure to change the air filter in your furnace and check its efficiency before the cold weather begins. Call in an HVAC contractor to test the heating output and give the system a tune-up. This technician can also check for and correct possibly hazardous carbon monoxide levels generated by your heating system. Stock up on several air filters for the winter, and change them every month. If you don’t have a programmable thermostat, purchase one for the system to help lower your energy costs.

After your furnace has been tuned up to its maximum efficiency, take a moment to inspect your heating ducts and vents. Dust them off and clear away anything that may have gotten into them over the summer. Then check your windows for any leaks that may compromise your heating efficiency. If you feel cold air coming in, purchase a plastic sealing kit from the hardware store and place the plastic around the window to keep the heat from escaping. Be sure to check your doors as well, and fix their weather-stripping if needed.

Check The Fireplace And Chimney
Most chimney sweeps recommend an annual sweeping, but depending on how often you use the fireplace, you might be able to wait on a full sweep. But if you will be using the fireplace often, call a chimney sweep for an inspection. For further information, read the Chimney and Woodburning Fireplace Safety guide.

Hopefully you will have your older, seasoned firewood now ready for use after sitting for the spring and summer. It’s recommended to keep the firewood at least 30 feet from the house and covered. Seasoned wood is best for fires, as it burns cleaner and longer.

Review Home Fire Safety
The introduction of the heating season brings new potential for fire hazards, so take a moment to review fire safety in your home. Check and replace fire extinguishers if necessary, and change the batteries in your smoke detectors. Also go over the home fire evacuation plan with your family.

Outside The House

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Housing starts are forecast to remain steady in 2011 and 2012, according to Canada Mortgage and Housing Corporation’s (CMHC) third quarter Housing Market Outlook, Canada Edition.¹

“Housing starts have been strong in the last few months, but are forecast to moderate closer in line with demographic fundamentals,” said Mathieu Laberge, Deputy Chief Economist for CMHC. “Despite recent financial uncertainty, factors such as employment, immigration and mortgage rates remain supportive of the Canadian housing sector.”

Housing starts will be in the range of 166,300 to 197,200 units in 2011, with a point forecast of 183,200 units. In 2012, housing starts will be in the range of 161,700 to 207,200 units, with a point forecast of 183,900 units.

Existing home sales will be in the range of 425,000 to 472,500 units in 2011, with a point forecast of 446,700 units, essentially the same level as in 2010. In 2012, MLS®² sales are expected to move up modestly in the range of 407,500 to 510,000 units, with a point forecast of 458,000 units.

The average MLS® price increased in the first half of 2011 partly as a result of more higher-end homes sold during that period. For the remainder of 2011, the average MLS® price is expected to moderate. Nevertheless, the annual average MLS® price will experience an overall increase in 2011 compared to last year. As the existing home market moves to more balanced markets, growth in the average MLS® price in 2012 is expected to be more modest.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

1 The forecasts included in the Housing Market Outlook reflect information available as of August 12, 2011. Where applicable, forecast ranges are also presented in order to reflect financial and economic uncertainty.

2 Multiple Listing Service® (MLS®) is a registered trademark owned by the Canadian Real Estate Association.

Canada's real estate market is now expected to grow this year rather than decline, as buyers take advantage of continued low interest rates that are intended to offset recent economic turmoil, economists said recently.

The comments came after the Canadian Real Estate Association revised its 2011 national forecast for home resales, citing stronger than expected sales and higher prices in the second quarter.

An earlier CREA forecast that called for a one per cent dip in sales this year from 2011. But the association said Tuesday sales should grow this year — albeit less than one per cent above 2010.

CIBC deputy chief economist Benjamin Tal said recent stock market uncertainty due to the European debt crisis and the United States credit downgrade is actually helping boost sales in Canada's real-estate market.

Bad economic news abroad tends to keep Canadian interest rates low, he said.

Since the European and American debt issues came to a head in recent weeks, economists have been predicting the Bank of Canada will leave its key rate untouched at one per cent until at least next year.

That's a change of opinion since last winter, when economists widely expected Canada's central bank would begin hiking its rates sometime in 2011 as the economy strengthened — putting upward pressure on the price of borrowing.

With the global economy now looking weaker than expected, and the U.S. Federal Reserve promising last week that it will keep its key short-term rate at an all-time low for another two years, the Bank of Canada is now expected to put off raising its short-term lending rates.

"The uncertainty globally is really benefiting mortgage holders because it's really postponing the increase in interest rates in Canada," Tal said, explaining that when the stock market turns volatile, real estate becomes an attractive investment because of its security.

"Many people can use this opportunity to look into extremely low mortgage rates, so again the misery of other people elsewhere is helping Canadian home buyers."

Sonya Gulati, an economist at TD Economics said the bank is anticipating that sales will be a bit more subdued in the next two months, but buyers, especially first timers and immigrants won't likely be deterred in the longer term as interest rates stay low.

"People may be waiting to see whether or not they want to purchase homes, see if things turn for the better. It really has been a roller coaster for the last little while so we anticipate a little bit more subdued activity in August and September," she said.

"(The stock market) will be a factor in their decision making process, but at the end of the day one of the key things for people is the interest rate and mortgage rates are still very low and they may actually want to enter the market for that reason despite the uncertainty out there."

Meanwhile, CREA's chief economist Gregory Klump said it is too early to judge whether buyers are moving towards or shying away from real estate due to volatile stock markets. But he said historically, real estate does well during times of uncertainty.

"During periods of financial market upheaval the Canadian real estate market has remained far more stable," he said, adding that even though some investors put off buying high end homes during the financial crisis of 2008 and 2009, those buyers returned to real estate soon after recovery began.

"The last time we had financial market instability, the housing market wasn't immune, but it was certainly less volatile and certainly Canadians recognize that and feel comfortable investing in their home."

Overall, CREA said Tuesday that 450,800 housing units are expected to be sold across Canada under its Multiple Listing Service in 2011, and the average selling price will be slightly higher. In May, it had estimated 441,100 units would be sold through the MLS.

About 90 per cent of home resales in Canada are listed on MLS.

Both Gulati and Tal said they expect the market to cool off in 2012 once interest rates rise again. Gulati said home prices could fall as much as 10 per cent, while Tal said they could fall between five and 10. Gulati described this as a "correction" while Tal said it was an "adjustment," but "nothing to write home about."

Meanwhile, the association said it was revising its sales expectations for 2012 downward to 447,000 units, roughly on par with the 10-year average.

On a regional basis, British Columbia's 2011 sales forecast has been revised slightly higher as home sales in the province appear to have bottomed out soon than predicted, while stronger than expected activity in Ontario is expected to offset slightly softer than anticipated demand in Quebec, Manitoba and Newfoundland and Labrador.

CREA said it now expects the national average home price will rise 7.2 per cent in 2011, to $363,500. The previous estimate in May was $352,500.

The upward revision reflects increases in the second quarter in Vancouver and acceleration in other parts of the country, particularly Toronto. Vancouver has experienced a surge in multimillion-dollar home sales this year.

CREA said the two markets have a high number of sales and average price, so they play a big part in influencing the national average.

Additional new listings should also result in a more balanced resale housing market in most provinces, with the national average price forecast to stabilize in 2012.

According to statistics¹ released today by The Canadian Real Estate Association (CREA), national resale housing activity was stable on a month-to-month basis in July following an uptick in June.

Highlights:

• Sales activity was stable from June to July, but posted a big year-over-year gain due to weakened demand in July 2010.
• Year-to-date sales continue to run in line with the ten-year average.
• The number of newly listed homes inched up by less than one per cent from June to July.
• The national housing market remains firmly entrenched in balanced territory.
• The national average price posted the largest year-over-year gain since April 2010, but was below where it stood in June.
• Upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of national activity in Vancouver and Toronto.

National home sales activity held steady in July 2011 compared to the previous month, with just over half of local markets posting month-over-month gains.
Major markets that saw gains compared to June include Edmonton, Montreal, as well as Newfoundland and Labrador. Activity also held steady in Toronto, while Vancouver recorded a small decline.

“The continued stability in national sales activity shows that homebuyers remain confident about the soundness of investing in a home,” said Gary Morse, CREA’s President. “Mortgage interest rates are low and keeping home affordability within reach, making it an excellent time for buyers to take advantage of very favourable financing. Prices and affordability evolve differently among local markets, so buyers and sellers should consult their local REALTOR® to better understand how the outlook for housing supply, demand, and prices is shaping up in their housing market.”

Actual (not seasonally adjusted) sales activity came in 12.3 per cent above national levels reported one year earlier. This increase reflects weakened activity in July 2010, when levels for the month reached their lowest point since 2002.

A total of 284,537 homes have traded hands via Canadian MLS® Systems so far this year. This stands just 1.6 per cent below levels in the first seven months of last year, and continues to run in line with the ten-year average.

The number of newly listed homes edged up by less than one per cent from June to July. New listings were down in 60 per cent of local markets, but increased in many large urban centres including Toronto, Vancouver, Edmonton, and Ottawa.

The national housing market remains firmly planted in balanced territory. The national sales-to-new listings ratio, a measure of market balance, stood at 51.8 per cent in July, which is little changed from 52.3 per cent in June.

Based on a sales-to-new listings ratio of between 40 to 60 percent, about three in every five local markets in Canada were balanced in July. Half of the remaining markets may be classified as sellers’ markets, with a sales-to-new listings ratio of above 60 per cent.

The number of months of inventory stood at 6.1 months at the end of July on a national basis, which is little changed from the end of June (6.0 months). The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand.

The actual (not seasonally adjusted) national average price for homes sold in July 2011 stood at $361,181, which is the lowest level since January. While up 9.3 per cent from its year-ago level, the increase reflects a short-lived decline in the average price following the introduction of the HST in B.C. and Ontario, and tighter mortgage regulations earlier in 2010.

“Earlier this year, the national average price was being skewed upward by sales in some expensive Vancouver neighbourhoods, but this factor is now diminishing,” said Gregory Klump, CREA’s Chief Economist. “Upward skewing of the national average price is also shrinking due to overall sales trends in Vancouver, and most recently in Toronto. Their market shares as a percentage of provincial and national sales activity are declining from the elevated levels seen in the first half of the year.”

“Changes in the national average home price are open to being misinterpreted,” added Klump. “They often signify changes in the mix of sales activity across and within local markets, rather than a rising or falling price trend for typical homes in a specific market.”

“The national share of sales activity in some of Canada’s more expensive urban centres may retreat further from elevated levels recorded earlier this year, resulting in an easing trend for the national average home price,” he added. “Even so, the stability of Canada’s housing market will likely continue to stand in stark contrast to further expected volatility in financial markets.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas.

Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.

1. Disinfecting and Deodorizing Sponges
Don't throw out the kitchen sponge that smells like last night's salmon. Soak it in water spiked with white vinegar or lemon juice, then heat it on high for 1 minute. (Use an oven mitt to remove it.) This will also disinfect any sponges you used to wipe up the juices from a raw chicken.
 
2. Cooking an Entire Dinner in Under 10 Minutes
Not just the TV variety. We mean braised salmon with green beans and mashed potatoes. Use the microwave for any recipe that calls for braising, poaching, or steaming. Just subtract about three-quarters of the cooking time. Remember to stir liquids often to redistribute the heat, and always take the food out a minute or two before it's completely done, since it will continue to cook.

3. Disinfecting Plastic Cutting Boards
Wash the board well, rub it with the cut side of a lemon, then heat for 1 minute.

4. Making Potatoes
While the microwave won't give you a baked potato with a crisp skin, it will cook the average russet in about 4 minutes. You can simultaneously cook as many as will fit. (The general rule for heating more food is to check for doneness every 30 seconds beyond the regular cooking time.) Prick the potatoes all over with a fork and cook for 2 minutes. Turn them over and cook for 2 to 3 minutes longer. For mashed potatoes, be sure to heat the milk in the microwave before adding it. (Cold milk makes for cold mashed potatoes.)

5. Softening Brown Sugar
Keep the sugar in its plastic packaging, add a few drops of water, and heat on medium for 10 to 20 seconds.

6. Decrystallizing Honey
Honey that has solidified can be brought back to liquid life by uncovering the jar and heating on medium power for 30 seconds to 1 minute.

  7. Proofing Yeast Doughs
Yeast doughs that normally take an hour or more to rise at room temperature can be proofed in the microwave in about 15 minutes. Place the dough in a very large bowl and cover with plastic. Place an 8-ounce cup of water in the back of the microwave with the bowl of dough in the center, and set the power as low as possible (10 percent power). Heat for 3 minutes, then let the dough rest in the microwave for 3 minutes. Heat for 3 minutes longer, then let rest for 6 minutes. The dough will double in bulk.

  8. Heating up Health Aids
You use a microwave to reheat your coffee, so why not use it to heat and reheat gel packs for headaches? (Don't do this with a metal-wrapped pack.)

9. Warming Beauty Products