CMHC reported on June housing starts last week, which showed no slowing in homebuilding quite yet. The annualized rate of starts was trending higher in June than in May and beat economists’ consensus estimates. The stand-alone annualized rate of starts in June was 198,185, well above the 190,000 rate which was expected.
Statistics Canada reported last week in its New Housing Price Index that new home prices in Canada increased by 0.1% in May. The annualized rate of increase was 1.5%. Calgary continues to lead the way with an annual increase of 7.6%.
Royal LePage points out in their House Price Survey and Market Forecasts which was published last week, that the national market is influenced by a few large urban markets which are experiencing price spikes from supply shortages while most of the rest of the country is seeing only moderate price gains, if any. They are forecasting that average prices will rise by 5.1% this year before cooling in 2015.
Canada’s employment figures, released on Friday by Statistics Canada, were disappointing comparing to the US report. The Canadian economy lost 9,400 jobs in June and over the past year, total job gains were only 72,000.
The benchmark government of Canada five year bond yield ended the week at 1.53%, down from 1.62% the previous week.
Original article from: www.mcap.com