Nominations open for 2021 Tri-Cities Chamber of Commerce business excellence awards

General Angela Calla 23 Sep

Tri-Cities Chamber of Commerce Business Excellence Awards

The Tri-Cities Chamber of Commerce Business Excellence Awards.Facebook/Tri-Cities Chamber of Commerce

 

Do you know of a business or businessperson that deserves recognition for their perseverance and dedication?

It’s undoubtedly been another trying season for businesses — big, medium or small — in the region with the COVID-19 pandemic, but the Tri-Cities Chamber of Commerce (TCCC) is hoping to honour those who’ve persevered.

As of Tuesday (Sept. 21), the nomination period is open for the organization’s 2021 Business Excellence Awards with a deadline of Oct. 8.

The award categories, along with nomination criteria and last year’s winners, are listed as follows:

Business Leader of the Year

  • 2020 Winner(s)
  • Criteria:
    • Has a proven track record of sustained success in his or her field
    • Has had a significant impact on his or her business as evidenced by growth, innovation, and an established reputation as a business leader
    • Demonstrates leadership by way of giving back through participation with local business initiatives and not-for-profit organizations
    • Has a reputation of business excellence and expertise in his or her field
    • Has an innovative spirit and has demonstrated an exceptional level of performance and dedication to leadership

Business of the Year

  • 2020 Winner(s)
  • Criteria:
    • Demonstrates an exceptional level of leadership and is regarded as a leader in its industry
    • Demonstrates excellence in performance as evidenced by longevity, retention, financial growth, and reputation (please provide documentation if at all possible)
    • Innovative based on the unique product and/or service it provides to the Tri-Cities, including exceptional customer service and satisfaction, and community services
    • Demonstrates a positive social conscience by utilizing its resources to improve its community through events and initiatives, support of local not-for-profits, and reducing its environmental impact
    • Has an overall positive impact on the Tri-Cities and makes the community a better place to live and work

Business Resiliency Award

  • 2020 Winner(s)
  • Criteria:
    • Responded to the pandemic with an exceptional level of leadership
    • Reacted positively to business interruptions during the pandemic
    • Found innovative ways to sustain and grow their business during the pandemic and beyond
    • The business supported its staff throughout the shutdown and pandemic
    • Demonstrates a positive social conscience by utilizing its resources to improve its community

Community Spirit Award

  • 2020 Winner(s)
  • Criteria:
    • Uses their resources to provide outstanding support to local initiatives and not-for-profit organizations
    • Embodies leadership in community initiatives and has had a significant positive impact on the Tri-Cities community
    • Demonstrates a passion for the community, making a positive difference and giving back
    • Demonstrates an outstanding generous spirit and dedication to making the Tri-Cities a better place to live and work

Not-for-Profit of the Year

  • 2020 Winner(s)
  • Criteria:
    • Has an established reputation within the community for providing exceptional programs and services
    • Provides innovative programs and services that would not otherwise be available to those in the community
    • Has a strong local impact
    • Has exceptional reach within the Tri-Cities community

Young Professional of the Year

  • 2020 Winner(s)
  • Criteria:
    • Embodies leadership and support in community initiatives and has had a significant positive impact on the Tri-Cities community and local businesses
    • Has a proven track record of sustained success, leadership, and growth in his or her field
    • Has had a significant impact on his or her business as evidenced by growth, innovation, and an established reputation as a business leader
    • Has a reputation of business excellence and expertise in his or her field
    • Showcases dedication to his or her company and bettering both the community and him or herself

Environmental Steward of the Year

  • 2020 Winner(s)
  • Criteria:
    • Demonstrates an in-depth understanding and an outstanding, cooperative effort to environmental sustainability
    • Is a role model for businesses in environmental sustainability best practices (recycling, composting, energy/water conservation, gardening, etc.)
    • Demonstrates sustainable business practices in its own operations (aside from the product or service for sale)
    • Helps to build environmental awareness and promote environmental stewardship within the Tri-Cities environmental landscape
    • Has milestones and/or measurable accomplishments that demonstrate effective sustainable operations

The Tri-Cities Chamber is encouraging interested residents and entrepreneurs to submit thorough nominations so judges can better determine the finalists.

A celebration is currently planned for Jan. 29, 2022.

For more information, you’re encouraged to visit the TCCC’s website.

Article published by the Tricity News 

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Team Banner housing market

Update | Liberals on the Housing Market

General Angela Calla 16 Sep

The Liberals have clarified what they’ll do for the Canadian Housing Market in a recent campaign. The Party releases an aggressive housing plan faceted to combat other Party’s aggressive housing plans.

Trudeau promises a number of notable things,

      • Billions of dollars in new funding, measures to curb the practice of “flipping” homes
        • Efforts to block foreign nationals from buying homes for two years
        • New regulatory measures to police exploitative real estate agents
        • A three-point program which includes,

          • Unlocking home ownership through new government funding
          • A plan to build more homes to address supply constraints
          • Measures to establish and protect new rights for buyers.
        •  Introduce a first home savings account which would allow Canadians up to age 40 to save $40,000 toward their first home and withdraw it tax-free when it comes time to buy.
        • Double the first-time home buyers tax credit from $5,000 to $10,000
        • Slash mortgage insurance rates by 25 per cent
        • A “rent-to-own” program, with $1 billion in new funding to “create a pathway for renters in five years or less
        • Build, preserve or repair 1.4 million homes in the next four years” by giving cities “new tools to speed up housing construction.”
        • Create a $4 billion pool of cash that cities could tap if they help to create “middle-class homes”
        • The party is also promising $2.7 billion over four years to build or repair more affordable homes
        • Money to convert empty office space into housing,
        • A “multigenerational home renovation tax credit” to offset the costs of adding a secondary unit to a home
        • More money for Indigenous housing to help First Nations, Métis and Inuit people who live in substandard conditions.

For more information, visit https://liberal.ca/housing/

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Liberals on the Housing Market

 

Maximum allowable rent increase capped at 1.5% for 2022

General Angela Calla 15 Sep

B.C.’s maximum allowable rent increase amount for 2022 is being set at 1.5%, based on inflation.

This increase cannot take effect prior to Jan. 1, 2022. If landlords choose to increase rent, they must provide a full three months’ notice to tenants using the correct notice of rent increase form.

To support British Columbians, the Province enacted a rent freeze at the beginning of the COVID-19 pandemic. The freeze has since been extended to Dec. 31, 2021.

The 2022 maximum allowable rent increase is significantly less than what it would have been prior to changes made by the Province in 2018 that limited rent increases to inflation. Prior to that change, maximum rent increases could include an additional 2% on top of inflation. This change has saved families hundreds of dollars.

B.C. landlords can only increase rent once annually, if they choose to increase rent at all.

The Province also recently banned illegal renovictions (evictions to complete renovations to a property)  by requiring landlords to apply to the Residential Tenancy Branch for pre-approval before ending a tenancy.

Quick Facts:

  • If  a landlord served a tenant with a notice of rent increase that takes effect in 2021, it is null and void and the tenant does not have to pay it.
  • The maximum allowable rent increase is defined by the 12-month average per cent change in the all-items Consumer Price Index for B.C. ending in July the year prior to the calendar year for which a rent increase takes effect.
    • For example, if a rent increase takes effect in 2022, the maximum allowable rent increase is the 12-month average per cent change in the all-items Consumer Price Index for B.C. ending in July 2021.
  • The 2022 maximum increase for manufactured home park tenancies will be 1.5%, plus a proportional amount for the change in local government levies and regulated utility fees.
  • The rent increase does not include commercial tenancies, non-profit housing tenancies where rent is geared to income, co-operative housing and some assisted-living facilities.

Published by the Attorney General. View article here.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Team Banner housing market

The benefit of giving your kids a chunk of their inheritance before you die

General Angela Calla 8 Sep

There’s an old saying that it’s better to give with a warm hand than a cold one. Put another way, for many parents, there are benefits to gifting money to the next generation while you’re still alive or providing what’s known as a “living inheritance.”

There’s an emotional reward that comes with giving adult children money to buy a house, start a business or simply support their families, experts say, as well as financial benefits of reducing the value of your future estate. The trick is not giving away too much so that it spoils the kids, or worse, curbs your retirement lifestyle.

“Assuming parents are in a strong financial position to do so, and if there are excess funds beyond their income retirement needs, then that’s when gifting should often be considered,” says Kelly Ho, a partner and certified financial planner at DLD Financial Group Ltd. in Vancouver.

Many are doing just that. A CIBC poll shows more than half of Canadian parents have either given or plan to give a significant gift or early inheritance to their children or grandchildren, either because their offspring need the money or parents want to take pleasure in seeing their kids and grandkids enjoy the funds.

The main upside to giving while alive is “getting to see how the money is making their loved one’s life better or easier,” says Moira Somers, a Winnipeg psychologist specializing in behavioural finance.

Ms. Somers points to an example from her own life, several years ago, when her mother paid for a fence when her own family couldn’t afford it.

“Every time I look at that fence, it’s with gratitude to my mom, Ms. Somers says.

Living Inheritance and Reverse Mortgages 

Sometimes accessing finances are challenging especially if you want to give a “living inheritance”. Deferrals and reverse mortgages can be a great way to generate potential “living inheritance” for your kids and grandchildren. Watch my videos below to get better acquainted with reverse mortgages and referrals! 

Don’t hesitate to reach out to us for more information or any questions you might have.

Get Advice Before You Give 

Parents looking to provide a living inheritance to their kids should talk to their financial adviser first to make sure the sum doesn’t derail their own financial goals.

When well planned, the benefits can be many: from funding the grandchildren’s postsecondary education to helping adult children purchase a first home (or a vacation home) to saving for their own retirement or treating the entire family to a winter holiday in a warm climate.

There can also be financial benefits: Cash gifts, given while alive, will ultimately reduce the size of the estate, reducing probate fees costs and taxes on the estate, says Samantha Prasad, a partner in the tax group at law firm Minden Gross LLP in Toronto.

While gifting is common among her clients, she cautions they may not always foresee the potential impact of a gift on their tax and estate situation.

“It comes up all the time, but often along the lines of, ‘I did this. That’s okay, right?’ ”

There’s no gift tax in Canada, as there is in countries such as the United States, and no threshold for how much you can give, Ms. Prasad says.

However, she says so-called “attribution rules” may apply if you gift cash to a spouse, common-law partner or minor children or grandchildren and they use it for an investment.

“Any income from that investment can be taxed in the hands of the person who made the gift,” she says, adding it’s Canada Revenue Agency’s (CRA) way of preventing people from income splitting, which is the ability to sprinkle income to family members in a lower tax bracket.

Another misconception, she says, is that people can gift real estate, investments and certain family heirlooms without tax implications. Ms. Prasad says the CRA considers the exchange a deemed disposition, meaning any increase in value on these assets while owned by the parents may be subject to capital gains tax.

She says the best option is often giving money directly from savings, or selling an asset first, paying the applicable taxes, and then gifting the proceeds.

Regardless of how it’s done, Ms. Prasad says the will should be adjusted to account for the gifts made while alive.

“That won’t entail a full revision of the will,” Ms. Prasad adds. “But a memo should be attached noting who received the gift, its size and on what date,” ensuring division of assets remains fair among beneficiaries.

With the financial, tax and estate considerations taken care of, parents can then relish in witnessing their money doing good for their family, Ms. Somers adds.

“There are lots of problems that a gift of money can help solve,” she says. “It can be great at easing burdens, giving opportunities for experiences that might not otherwise be possible, and facilitate closer connections when an unreliable car or inability to pay for a plane ticket would have been a barrier.”

Source: The Globe and Mail

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

living inheritance

Bank of Canada maintains policy rate, continues forward guidance and current pace of quantitative easing

General Angela Calla 8 Sep

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate. This is reinforced and supplemented by the Bank’s quantitative easing (QE) program, which is being maintained at a target pace of $2 billion per week.

The global economic recovery continued through the second quarter, led by strong US growth, and had solid momentum heading into the third quarter. However, supply chain disruptions are restraining activity in some sectors and rising cases of COVID-19 in many regions pose a risk to the strength of the global recovery. Financial conditions remain highly accommodative.

In Canada, GDP contracted by about 1 percent in the second quarter, weaker than anticipated in the Bank’s July Monetary Policy Report (MPR). This largely reflects a contraction in exports, due in part to supply chain disruptions, especially in the auto sector. Housing market activity pulled back from recent high levels, largely as expected. Consumption, business investment and government spending all contributed positively to growth, with domestic demand growing at more than 3 percent. Employment rebounded through June and July, with hard-to-distance sectors hiring as public health restrictions eased. This is reducing unevenness in the labour market, although considerable slack remains and some groups – particularly low-wage workers – are still disproportionately affected. The Bank continues to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery.

CPI inflation remains above 3 percent as expected, boosted by base-year effects, gasoline prices, and pandemic-related supply bottlenecks. These factors pushing up inflation are expected to be transitory, but their persistence and magnitude are uncertain and will be monitored closely. Wage increases have been moderate to date, and medium-term inflation expectations remain well-anchored. Core measures of inflation have risen, but by less than the CPI.

The Governing Council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s July projection, this happens in the second half of 2022. The Bank’s QE program continues to reinforce this commitment and keep interest rates low across the yield curve. Decisions regarding future adjustments to the pace of net bond purchases will be guided by Governing Council’s ongoing assessment of the strength and durability of the recovery. We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective.

Information note

The next scheduled date for announcing the overnight rate target is October 27, 2021. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

This article was published by the Bank of Canada and can be viewed here

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Team Banner housing market

BC’s Fall Housing Market | 7 Things to Keep in Mind

General Angela Calla 26 Aug

We are excited to enter the next season with optimism in BC’s Fall Housing Market. However, we’d like to point out 7 things that people should continue to observe as the season changes over. 

1. A hot pre-sale market

Attractive to young buyers, British Columbia’s pre-sale market is hot and booming. This is perfect for young buyers who are still living at home and saving up for a down payment to own their own homes. We can expect the pre-sale market to continue to be hot and in demand.

2. Demand should continue to outpace supply 

Demand will continue to outpace supply. We know that it can take up to 3 years to complete a development and with rising costs we simply can’t build fast enough in order to keep up with our current market’s demand. This topic continues to be a major issue especially because our policies make it so difficult for developers to build faster.

3. Low interest rates will continue to fuel demand

Low interest rates will indeed continue to fuel demand as it is a great incentive. You may have heard talk about the possibility of inflation in the short term and it has definitely been higher than what we’ve seen in the last few decades. We would caution you for now especially with things just beginning to open up from the turmoil COVID-19 has caused us, health wise and economic wise. It may be too early to proceed with things as we go into another wave of COIVD-19. We have more information about this topic here which can really illustrate what’s happening right now. 

4. Competition from expatriates 

This is definitely a hot issue that will continue through to this fall and of course, is a vital topic in politics with elections warming up. How might each party respond to foreign investors who take advantage of our hot market? Will the Government ban foreign buyers from purchasing property? The impact this has on our real estate is vast and many houses are left without occupation. Many Canadians are looking to own their own home, if this trend continues the market will continue to inflate. We have each political plan here on our blog. 

The NDP: How They Plan to Tackle the Housing Crisis if Elected

The Liberals: How They Plan to Tackle Housing if Re-Elected

The Conservatives: How They Plan to Tackle the Housing Crisis if Elected

5. A new wave of renters and buyers could enter the market 

We have a new wave of renters and buyers that are entering the market. Those who are immigrating into the country and those who are of generational age are ready to rent and purchase homes this fall. We continue to welcome 400,000 immigrants per year with a total of 1.2 million people as a set goal by the Canadian Government. The increase in renters will encourage investors to continue to invest in our cities which will create a busier rental market over all.

6. Quality offers 

Quality offers will continue to prevail but the good news for new buyers is that their won’t be many offers to compete against. Canadians however will continue to increase their financial literacy and education which will help better their knowledge on planning and taking the proper steps towards their goals. Having clarity on the options around you will aid in the maintenance of quality offers.

7. Optimism should remain high

Optimism should remain high because it is a top priority among many Canadians because it stabilizes them financially and secures the future of their equity. Working with the correct professionals will ensure that you’re prepared for this fall housing market.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Team Banner housing market

Save for a Down Payment | 5 Tips

General Angela Calla 24 Aug

5 Tips to help you save for a down payment!

 

1. Eliminate high interest debt first

Any outstanding credit card bill or high interest rates can impact the time it takes for you to save for a down payment. In addition, every $480 spent on car payments might hold you back from securing the extra $100,000 loan which you might need while saving a down payment for a house.

2. Identify area where you spend too much

Take a look through all your bank statements! You might notice some automatic payments and payments for subscriptions you don’t use too much anymore. There are so many areas where our financial planners can help identify and action on these areas to help you save for a down payment.

3. Build a budget for your household

Over paying for a product could be something that is holding you back. We have had many clients who have been held back by dated life insurance policies and other programs which have cost significantly more than their dated counterparts. Our financial planning partners can help identify these areas and may be able to grant you savings.

4. Set up automatic transfers

Saving up for a down payment is tricky, but if you set up automatic transfers, you can forget about that money while making use your TFSA and RRSP programs. Whether if you are living at home, have children, or have high interest debt, automatic transfers can absolutely benefit your savings.

5. Utilize contributing to your TFSA and RRSP

These banking programs are highly important since they are tax free! Your hard earned money will not be taxed and it’s perfect since you can set automatic transfers directly to your TFSA and RRSP.

Whatever your position is at the moment, we are here to help and understand every step of your journey!

Click  here to view the latest news on our blog. 

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

5 Tips for Saving a Down Payment

Canadian Inflation Hits Highest Reading in Two Decades

General Angela Calla 24 Aug

Annual inflation hits 3.7% in Canada—a new election issue.

Canadian inflation hits highest reading in two decades. This morning’s Statistics Canada release showed that the July CPI surged to a 3.7% year-over-year pace, well above the 3.1% pace recorded in June. This is now the fourth consecutive month in which inflation is above the 1% to 3% target band of the Bank of Canada and has set Canadian inflation at an all time high. And given the flash election, opposition parties are already making hay. “The numbers released today make it clear that under Justin Trudeau, Canadians are experiencing a cost of living crisis,” Conservative leader Erin O’Toole said in a statement. He went on to suggest that the Liberal government is stoking inflation with its debt-financed government spending programs.

While it is true that deficit spending has surged during the pandemic, the same is also true for nearly every country in the world. Moreover, accelerating inflation is a global phenomenon and most central banks believe it to be temporary. Certainly, Tiff Macklem is firmly of that view, as is the Fed Chairman Jerome Powell.

Supply disruptions and base effects have largely caused the rise in inflation. Semiconductor production, for example, slumped during the 2020 lockdowns, and then couldn’t be ramped up fast enough when demand for cars and electronics returned, leading the prices of new and used autos to rise at a record pace. Prices for airfares and hotel stays also jumped. Companies found themselves short of workers as they reopened, leading some to offer bonuses or boost wages and subsequently raise prices for consumers.

Central bankers believe that the price pressures are transitory, representing temporary shocks associated with the reopening of the economy. Lumber prices, for example, spiked when demand for new homes returned and have since normalized (see the chart below). To be sure, above-target inflation has heightened uncertainty. The central banks do not want to choke off the economic recovery through misplaced inflation fears. Many Canadians remain out of work, and long-term unemployment is still very high. Moreover, the recent surge of the delta variant proves that the recovery is uncertain.

Bank of Canada Governor Tiff Macklem, whose latest forecasts show inflation creeping up to 3.9% in the third quarter before easing at the end of the year, has warned against overreacting to the “temporary” spike.

Shelter prices rising fastest

Prices rose faster year-over-year in six of the eight major components of Canadian inflation in July, with shelter prices contributing the most to the all-items increase. Conversely, prices for clothing and footwear and alcoholic beverages, tobacco products and recreational cannabis slowed on a year-over-year basis in July compared with June. Year over year, gasoline prices rose less in July (+30.9%) than in June (+32.0%). A base-year effect continued to impact the gasoline index, as prices in July 2020 increased 4.4% on a month-over-month basis when many businesses and services reopened.

In July 2021, gasoline prices increased 3.5% month over month, as oil production by OPEC+ (countries from the Organization of Petroleum Exporting Countries Plus) remained below pre-pandemic levels though global demand increased.

The homeowners’ replacement cost index, which is related to the price of new homes, continued trending upward, rising 13.8% year over year in July, the largest yearly increase since October 1987. Similarly, the other owned accommodation expenses index, which includes commission fees on the sale of real estate, was up 13.4% year over year in July.

Year-over-year price growth for goods rose at a faster pace in July (+5%) than in June (+4.5%), with durable goods (+5%) accelerating the most. The purchase of passenger vehicles index contributed the most to the increase, rising 5.5% year over year in July. The gain was partially attributable to the global shortage of semiconductor chips. Prices for upholstered furniture rose 13.4% year-over-year in July, largely due to lower supply and higher input costs.

Core measures

The average of core inflation readings, a better gauge of underlying price pressures, rose to 2.47% in July, the highest since 2009. Monthly, prices rose 0.6% versus a consensus estimate of 0.3%. Rising costs to own a home are one of the biggest contributors to the elevated Canadian inflation rate, following a surge in real estate prices over the past year.

Bottom line 

Today’s inflation data likely did little to alter the Bank of Canada’s view that above-target inflation will be a transitory phenomenon. They are already ahead of most central banks in tapering the stimulus coming from quantitative easing. They do not expec t to start increasing interest rates until the labour markets have returned to full employment, which they judge to occur in the second half of 2022. In the meantime, pent-up demand in Canada is huge as people tap into their involuntary savings during the lockdown to pay higher prices at restaurants, grocery stores and gas stations. Financial markets appear to be sanguine about the prospect for rate hikes, as bond yields have been trading in a very narrow range.

This article was published by Dr. Sherry Cooper, to read the article on her website click here

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

canadian inflation

The Slowdown In Canadian Housing Continued in July

General Angela Calla 23 Aug

Today the Canadian Real Estate Association (CREA) released statistics showing national existing home sales fell 3.5% nationally from June to July 2021–the fourth consecutive monthly decline. Over the same period, the number of newly listed properties dropped 8.8%, and the MLS Home Price Index rose 0.6% and was up 22.2% year-over-year.

While sales are now down a cumulative 28% from the March peak, Canadian housing markets are still historically quite active (see Chart below). In July, the decline in sales activity was not as widespread geographically as in prior months, although sales were down in roughly two-thirds of all local markets. Edmonton and Calgary led the slowdown, but these cities didn’t experience falling sales until recently. In Montreal, in contrast, where sales began to moderate at the start of the year, activity edged up in July.

The actual (not seasonally adjusted) number of transactions in July 2021 was down 15.2% on a year-over-year basis from the record for that month set last July. July 2021 sales nonetheless still marked the second-best month of July on record.

“While the moderation of sales activity continues to capture most of the headlines these days, it’s record-low inventories that should be our focus,” said Cliff Stevenson, Chair of CREA. Most markets are in sellers’ market territory.

New Listings

The number of newly listed homes dropped by 8.8% in July compared to June, with declines led by Canada’s largest cities – the GTA, Montreal, Vancouver and Calgary. Across the country, new supply was down in about three-quarters of all markets in July.

This was enough to noticeably tighten the sales-to-new listings ratio despite sales activity also slowing on the month. The national sales-to-new listings ratio was 74% in July 2021, up from 69.9% in June. The long-term average for the national sales-to-new listings ratio is 54.7%.

Based on a comparison of sales-to-new listings ratio with long-term averages, the tightening of market conditions in July tipped a small majority of local markets back into seller’s market territory, reversing the trend of more balanced markets seen in June.

Another piece of evidence that conditions may be starting to stabilize was the number of months of inventory. There were 2.3 months of inventory on a national basis at the end of July 2021, unchanged from June. This is extremely low – still indicative of a strong seller’s market at the national level and most local markets. The long-term average for this measure is twice where it stands today.

Home Prices

The Aggregate Composite MLS® Home Price Index (MLS® HPI) rose 0.6% month-over-month in July 2021, continuing the trend of decelerating month-over-month growth that began in March. That deceleration has yet to show up in any noticeable way on the East Coast, where property is relatively more affordable.

Additionally, a more recent point worth noting (and watching) just in the last month has seen prices for certain property types in certain Ontario markets look like they might be re-accelerating. This could be in line with a re-tightening of market conditions in some areas.

The non-seasonally adjusted Aggregate Composite MLS® HPI was up 22.2% on a year-over-year basis in July. While still a substantial gain, it was, as expected, down from the record 24.4% year-over-year increase in June. The reason the year-over-year comparison has started to fall is that we are now more than a year removed from when prices really took off last year, so last year’s price levels are now catching up with this year’s, even though prices are currently still rising from month to month.

Looking across the country, year-over-year price growth averages around 20% in B.C., though it is lower in Vancouver and higher in other parts of the province. Year-over-year price gains in the 10% range were recorded in Alberta and Saskatchewan, while gains are closer to 15% in Manitoba. Ontario sees an average year-over-year rate of price growth in the 30% range. However, as with B.C., gains are notably lower in the GTA and considerably higher in most other parts of the province. The opposite is true in Quebec, where Montreal is in the 25% range, and Quebec City is in the 15% range. Price growth is running a little above 30% in New Brunswick, while Newfoundland and Labrador is in the 10% range.

Bottom Line

Sales activity will continue to gradually cool over the next year, but it will take higher interest rates to soften the housing market in a meaningful way. Local housing markets are cooling off as prospective buyers contend with a dearth of houses for sale. Though increasing vaccination rates have begun to bring a return to normal life in Canada, that’s left the country to contend with one of the developed world’s most severe housing shortages and little prospect of much new supply becoming available soon.

This article was published on Dr. Sherry Cooper’s website, August 16, 2021. To view the article there, click here.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Team Banner housing market

 

The Liberals: How They Plan to Tackle Housing if Re-Elected

General Angela Calla 19 Aug

While the Liberals don’t have any new plans to tackle housing to date — the party’s latest platform promise includes $10 a day child care for families — the party’s ongoing platform features three housing components.

  1. As part of a new, ten-year investment of nearly $20 billion in social infrastructure, the Liberals say they will prioritize significant new investment in affordable housing and seniors facilities.
  2. The party says it will undertake a review of escalating home prices in high-priced markets — like Vancouver and Toronto — to determine whether speculation is driving up the cost of housing.
  3. The Liberals say they will increase the new residential rental property rebate on the GST to 100% — eliminating all GST on new capital investments in affordable rental housing.
    • This wll provide $125 million per year in tax incentives to increase and substantially renovate the supply of rental housing across Canada

However, as part of the Liberal’s 2021 federal budget, the party said $3.8 billion in new and re-assigned funding would be allocated for affordable housing, the Canada Housing Benefit, and other initiatives to build, convert, or repair 35,000 units across Canada. These funds will be distributed over the course of seven years.

What’s more, the budget shows $612 million will be dedicated to the homelessness strategy, including veterans, over two years.

The Liberals also announced a 1% national tax on non-resident, non-Canadian-owned residential real estate considered vacant or underused. This revenue stream is estimated to bring in $700 million over four years and would be levied annually beginning in 2022.

This article was written and published by Ainsley Smith, a writer from Storeys Publishing (2021). To read the full article click here

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Team Banner housing market

 

« First…102030…4243444546…506070…Last »