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Average Canadian house price rose 14% in year up to July, CREA says – CBC.ca

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Canada’s housing market came roaring back in a big way in July, smashing the record for the most homes sold during the month, and average prices rising 14 per cent from where they were a year ago.

The Canadian Real Estate Association (CREA), which represents 130,000 realtors across Canada, said Monday that 62,355 Canadian resale homes were sold via the Multiple Listings Service, shattering the previous record for most sales in a month.

The July figure was 26 per cent higher than June’s figure. July is not typically the busiest time of the year for home sales, but as it has with just about everything else, the COVID-19 pandemic has thrown the old ways out the window.

The housing market typically starts off the year slow in the colder months, before warming up in the early spring and usually peaking in about May or June. By later in the summer, sales start to slow, and then go into hibernation through the winter before the cycle starts up again.

But the arrival of COVID-19 in March has seemingly delayed that schedule, as sales in March and April were wiped out because of lockdowns, and that home selling activity is only now returning to the market.

“What a difference three months makes, from some of the lowest housing numbers ever back in April to the multiple monthly records logged in July,” CREA’s chief economist Shaun Cathcart said of the numbers.

“A big part of what we’re seeing right now is the snap back in activity that would have otherwise happened earlier this year.”

The sales boom is being led by Canada’s biggest cities, as home sales rose by 49.5 per cent in the Greater Toronto Area, 43.9 per cent in Greater Vancouver and by 39.1 per cent in Montreal.

Prices rising at fastest pace since 2017

The average selling price in July was $571,500, an increase of 14.3 per cent from the same level a year earlier.

CREA says the average price can be misleading because it is easily influenced by sales of expensive properties in big markets like Toronto and Vancouver. So the realtor group calculates another number, known as the Home Price Index, which it says is a better gauge of the market because it strips out that volatility, and adjusts for both the volume and type of housing being sold in every market.

The HPI increased at a 7.4 per cent annual rate in July. That’s the fastest pace of gain since 2017. All 20 of the biggest housing markets in Canada had a higher HPI number in July than they did in June.

Prices are increasing and so are sales, but it’s clear the market is still being very much impacted by COVID-19.

The inventory level, which is the total amount of homes available for sale, has fallen to its lowest level in 16 years.

“There are listings that will come to the market because of COVID-19, but many properties are also not being listed right now due to the virus,” Cathcart said.

Home sales that normally might have happened in the spring are only happening now, which is messing with the normal state of Canada’s housing market. (The Associated Press)

TD Bank economist Brian DePratto said “it looks like we got at least one ‘V’ recovery after all,” referring to the shape of the bounceback — a sharp drop followed by an equally sharp recovery.

“In just three short months, Canadian resale activity and average prices have not just popped back to above pre-pandemic levels, but to new record highs,” he said.

While he described the July numbers as “impressive,” DePratto noted that there’s ample reason to doubt that they can be sustained.

DePratto notes that massive government programs to subsidize wages, along with bank mortgage interest deferral programs, have done a lot to insulate the housing market from some of the pain that’s happening in other parts of the economy. But those impacts can’t be put off forever. “As autumn approaches, these programs will expire or change form,” he said. “Depending on the progress of the broader economic recovery, this could bring significant headwinds to housing markets, particularly prices.”

Bank of Montreal economist Robert Kavcic is also of the view that the housing market can’t continue to defy expectations during a recession forever. “Home buying demand has continued to build, which is contrary to what you’d normally see,” he said. “Part of this reflects the fact that the mid-to-upper income range of the job market has held up very well versus the lower end [but] one has to expect that the level of pent-up demand seen in July is going to fade through the rest of the year.”

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Bimbo Canada closing Quebec City bakery, affecting 141 workers

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MONTREAL – Bakery company Bimbo Canada says it’s closing its bakery in Quebec City by the end of the year, affecting about 141 workers.

The company says operations will wind down gradually over the next few months as it moves production to its other bakeries.

Bimbo Canada produces and distributes brands including Dempster’s, Villaggio and Stonemill.

It’s a subsidiary of Mexico-based Grupo Bimbo.

The company says it’s focused on optimizing its manufacturing footprint.

It says it will provide severance, personal counselling and outplacement services to affected employees.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.



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NDP to join Bloc in defeating Conservatives’ non-confidence motion

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OTTAWA – The New Democrats confirmed Thursday they won’t help Pierre Poilievre’s Conservatives topple the government next week, and intend to join the Bloc Québécois in blocking the Tories’ non-confidence motion.

The planned votes from the Bloc and the New Democrats eliminate the possibility of a snap election, buying the Liberals more time to govern after a raucous start to the fall sitting of Parliament.

Poilievre issued a challenge to NDP Leader Jagmeet Singh earlier this week when he announced he will put forward a motion that simply states that the House has no confidence in the government or the prime minister.

If it were to pass, it would likely mean Canadians would be heading to the polls, but Singh said Thursday he’s not going to let Poilievre tell him what to do.

Voting against the Conservative motion doesn’t mean the NDP support the Liberals, said Singh, who pulled out of his political pact with Prime Minister Justin Trudeau a few weeks ago.

“I stand by my words, Trudeau has let you down,” Singh said in the foyer outside of the House of Commons Thursday.

“Trudeau has let you down and does not deserve another chance.”

Canadians will have to make that choice at the ballot box, Singh said, but he will make a decision about whether to help trigger that election on a vote-by-vote basis in the House.

The Conservatives mocked the NDP during Question Period for saying they had “ripped up” the deal to support the Liberals, despite plans to vote to keep them in power.

Poilievre accused Singh of pretending to pull out of the deal to sway voters in a federal byelection in Winnipeg, where the NDP was defending its long-held seat against the Conservatives.

“Once the votes were counted, he betrayed them again. He’s a fake, a phoney and fraud. How can anyone ever believe what the sellout NDP leader says in the future?” Poilievre said during Question Period Thursday afternoon.

At some point after those comments, Singh stepped out from behind his desk in the House and a two-minute shouting match ensued between the two leaders and their MPs before the Speaker intervened.

Outside the House, Poilievre said he plans to put forward another non-confidence motion at the next opportunity.

“We want a carbon-tax election as soon as possible, so that we can axe Trudeau’s tax before he quadruples it to 61 cents a litre,” he said.

Liberal House leader Karina Gould says there is much work the government still needs to do, and that Singh has realized the consequences of potentially bringing down the government. She refused to take questions about whether her government will negotiate with opposition parties to ensure their support in future confidence motions.

Bloc Québécois Leader Yves-François Blanchet hasn’t ruled out voting no-confidence in the government the next time a motion is tabled.

“I never support Liberals. Help me God, I go against the Conservatives on a vote that is only about Pierre Poilievre and his huge ambition for himself,” Blanchet said Thursday.

“I support the interests of Quebecers, if those interests are also good for Canadians.”

A Bloc bill to increase pension cheques for seniors aged 65 to 74 is now at “the very centre of the survival of this government,” he said.

The Bloc needs a recommendation from a government minister to OK the cost and get the bill through the House.

The Bloc also wants to see more protections for supply management in the food sector in Canada and Quebec.

If the Liberals can’t deliver on those two things, they will fall, Blanchet said.

“This is what we call power,” he said.

Treasury Board President Anita Anand wouldn’t say whether the government would be willing to swallow the financial implications of the Bloc’s demands.

“We are focused at Treasury Board on ensuring prudent fiscal management,” she said Thursday.

“And at this time, our immediate focus is implementing the measures in budget 2024 that were announced earlier this year.”

This report by The Canadian Press was first published Sept. 19, 2024.



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Anita Anand sworn in as transport minister after Pablo Rodriguez resigns

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OTTAWA – Treasury Board President Anita Anand has been sworn in as federal transport minister at a ceremony at Rideau Hall, taking over a portfolio left vacant after Pablo Rodriguez resigned from cabinet and the Liberal caucus on Thursday.

Anand thanked Rodriguez for his contributions to the government and the country, saying she’s grateful for his guidance and friendship.

She sidestepped a question about the message it sends to have him leave the federal Liberal fold.

“That is a decision that he made independently, and I wish him well,” she said.

Prime Minister Justin Trudeau was not present for the swearing-in ceremony, nor were any other members of the Liberal government.

The shakeup in cabinet comes just days after the Liberals lost a key seat in a Montreal byelection to the Bloc Québécois and amid renewed calls for Prime Minister Justin Trudeau to step down and make way for a new leader.

Anand said she is not actively seeking leadership of the party, saying she is focused on her roles as minister and as MP.

“My view is that we are a team, and we are a team that has to keep delivering for our country,” she said.

The minority Liberal government is in a more challenging position in the House of Commons after the NDP ended a supply-and-confidence deal that provided parliamentary stability for more than two years.

Non-confidence votes are guaranteed to come from the Opposition Conservatives, who are eager to bring the government down.

On Thursday morning, Rodriguez made a symbolic walk over the Alexandra Bridge from Parliament Hill to Gatineau, Que., where he formally announced his plans to run for the Quebec Liberal party leadership.

He said he will now sit as an Independent member of Parliament, which will allow him to focus on his own priorities.

“I was defending the priorities of the government, and I did it in a very loyal way,” he said.

“It’s normal and it’s what I had to do. But now it’s more about my vision, the vision of the team that I’m building.”

Rodriguez said he will stay on as an MP until the Quebec Liberal leadership campaign officially launches in January.

He said that will “avoid a costly byelection a few weeks, or months, before a general election.”

The next federal election must be held by October 2025.

Conservative Leader Pierre Poilievre said he will try to topple the government sooner than that, beginning with a non-confidence motion that is set to be debated Sept. 24 and voted on Sept. 25.

Poilievre has called on the NDP and the Bloc Québécois to support him, but both Jagmeet Singh and Yves-François Blanchet have said they will not support the Conservatives.

Rodriguez said he doesn’t want a federal election right away and will vote against the non-confidence motion.

As for how he would vote on other matters before the House of Commons, “it would depend on the votes.”

Public Services and Procurement Minister Jean-Yves Duclos will become the government’s new Quebec lieutenant, a non-cabinet role Rodriguez held since 2019.

This report by The Canadian Press was first published Sept. 19, 2024.

— With files from Nojoud Al Mallees and Dylan Robertson

The Canadian Press. All rights reserved.



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