investors are very nervous
photo by Rennett Stowe

The debt crisis in Europe has made many investors very nervous, but it’s not all bad news for everyone. The massive European bailout that sent stock markets soaring Monday also gave Canadian homeowners a reason to smile.

Financial instability in Europe has caused investors to flee to the safety of U.S. and Canadian government bonds. Demand for 5-year Government of Canada bonds has pushed their yields lower in recent weeks. The lower yield reduces the borrowing cost for banks, making it cheaper for them to fund their 5-year fixed-rate mortgages. With financing costs falling, Toronto-Dominion Bank took cut its mortgage rates. In the following days, most banks have done the same, decreasing their rates by between 10 and 15 basis points.

The Greater Vancouver housing market experienced increased activity in April thanks to a steady balance of home buyers and sellers entering the marketplace.

Residential property sales in Greater Vancouver totaled 3,512 in April 2010, an increase of 18.5% compared to the 2,963 sales in April 2009, a 9.1% increase over April 2008, and a 3.7% increase compared with April 2007 and a 12% increase compared to March 2010 when 3,137 sales were recorded.

home construction rose 1.3%
photo by "py"

New home construction rose 1.3% in April as Canada’s real estate market continued to show signs of recovery. Rising to a seasonally adjusted annualized rate of 201,700 units from a revised 199,200 in March, Canada Mortgage and Housing Corp figures showed on Monday.

Nevertheless, the April number came in below the average forecast of analysts, who had called for 205,000 starts. However, this was only the second time that the pace of housing starts has breached the 200,000 units barrier since November 2008. The Canadian dollar pulled back slightly after the data was released, but at C$1.0236 to the U.S. dollar, or 97.69 U.S. cents, it was still about 2% higher than Friday’s close, surging on the back of a European rescue deal.

Have you finished renovating your kitchen? We have prepared next part of our Home Renovations Guide. This time we will focus on bathroom.

Canadian businesses are gaining confidence that the recovery is real, but they remain concerned that they not see the results in their individual operations.

Canadian companies must “innovate or perish”, as the lagging productivity becomes an increasing challenge in a world in which foreign competition is intensifying.

Mark Carney and Stephen Harper are warning that national debt problems like those affecting Greece are a threat to economic rebound in Canada and around the globe.

Canada’s housing market is beginning to show signs of a bubble, investment firm Edward Jones cautions Canadians about investing in housing.

The number of luxury home sales rose noticeably in the Q1 as affluent purchasers moved to take advantage of favourable market conditions across the country.

Flaherty did not give up the fight with the IMF over the organization’s proposal for a global bank tax and called the plan ‘odd’ and senseless for Canada.

Two months ago, in order to turn down the overheating real estate market, federal mortgage rules were implemented and took effect on Monday, April the 19th.

Canada experienced a recession that was less severe and shorter than any other Group of Seven (G7) nation, far from the downturns of the early 1980s and 1990s.

Renovations in Dining Room
Photo by Jeremy Levine

Few weeks ago we finished out Moving Guide. Since every real estate agent wishes to deal the best properties, we decided to help all our potential clients or just random visitors to improve their homes. In upcoming weeks, we will present you Home Renovations Guide.

Prices were up…
photo by Jane

However, Vancouver and Toronto prices rose too far on these local markets, almost by 20 percent in some cases. Standard two-story homes in Toronto were up 13.2 per cent, rising to $562,150 while condo prices rose a more moderate 10 per cent to $317,579. In the Vancouver area, detached bungalows climbed an eye-popping 21.8 per cent to $906,045 while two-storey homes were up 19.2 per cent to $987,5000 and standard condos were up 15.7 per cent from early 2009, rising to $470,000.

Ready for the work week
photo by Sean

The Canadian economy has created 17 900 jobs in March, continuing an upward trend that began in July 2009. The unemployment rate remained unchanged at 8.2%.

The economy shed 14,200 full-time jobs last month, while creating 32,200 part-time positions. It’s a reversal of a month earlier, when full-time jobs drove the gains, partly due to Olympic-related hiring.

The new jobs have mostly benefited the professional, scientific and technical services sector and construction and natural resources fields. Job losses were recorded in business services, transportation and warehousing, among others.