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January home sales hit new record for the month as prices also post record high

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Tara Deschamps, The Canadian Press


Published Tuesday, February 16, 2021 9:41AM EST


Last Updated Tuesday, February 16, 2021 10:58AM EST

OTTAWA — Canadians didn’t let COVID-19 or a lack of housing supply stop them from flocking to the real estate market in January as they snatched up a record number of homes and shelled out more than they had in previous years.

The Canadian Real Estate Association said Tuesday that January sales were up 35.2 per cent compared with a year earlier and up two per cent when compared to December.

The increase came as the national sales-to-new listings ratio rose to 90.7 per cent – the highest level on record. The previous monthly record was 81.5 per cent set 19 years ago.

The actual national average price of a home sold also soared to a record $621,525 in January, up 22.8 per cent from the same month last year.

CREA said market conditions were pushed to record levels in January because people have held off putting their homes up for sale in the middle of the pandemic, leaving fewer options for people to fight over.

“The buyers and sellers that will in time define the Canadian housing story of 2021 are mostly all still waiting in the wings,” Shaun Cathcart, CREA’s senior economist, said in a statement.

However, Cathcart believes the market is unlikely to see a rush of listings until the public heath situation improves and the dreary winter weather subsides.

“The best case scenario would be if we see a lot of sellers who were gun-shy to engage in the market last year making a move this year,” he said.

“A big surge in supply is what so many markets really need this year to get people into the homes they want, and to keep prices from accelerating any more than they already are.”

CREA found the Greater Vancouver and the Greater Toronto Area, two of the country’s most active and expensive markets, were heating up very quickly in January.

The average seasonally adjusted price of a home in the GTA was $941,100 and in Vancouver, was just over $1 million.

When the associated removed data from both those regions from the $621,525 national price average, it found the average price was slashed by $129,000.

But that doesn’t mean that conditions eased up outside the city centres, said Wins Lai, a Toronto real estate broker.

Prices in areas like Vaughan and Markham, Ont., have reached levels she is shocked by.

“Outside of the city in somewhere like Barrie, we are seeing 40 offers on something that’s $750,000 which is insane,” she said.

CREA said year-over-year price increases between 25 and 30 per cent were seen many regions in Ontario including Barrie, Niagara, Grey-Bruce Owen Sound, Huron Perth, Kawartha Lakes, London and St. Thomas, North Bay, Simcoe and Southern Georgian Bay.

However, the largest year-over-year gains – above 30 per cent – were recorded in the Lakelands region of Ontario cottage country, Northumberland Hills, Quinte, Tillsonburg District and Woodstock-Ingersoll.

Urban sprawl and the pandemic are responsible for part of this phenomenon, Lai said.

“People want to be outside of the city, they want to have their own homes and they don’t want to be in elevators.” she said.

While the downtown core may be less attractive because many people are working from home, young professionals and couples are still trying to snatch up homes there and bidding wars on condos are plentiful.

CREA said January price gains were in the 10 to15 per cent range in the GTA, Mississauga, Chilliwack, B.C., B.C.’s Okanagan Valley, Winnipeg and on Vancouver Island.

Montreal’s average prices reached $434,200, 16.6 per cent compared to last January.

They rose by as much as 10 per cent in Victoria, Greater Vancouver, Regina and Saskatoon and by about 2 per cent in Calgary and Edmonton.

Source: – CP24 Toronto’s Breaking News

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Asian markets roiled as bond rout turns 'lethal' – Reuters

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SYDNEY (Reuters) – Asian stocks fell by the most in nine months on Friday as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.

FILE PHOTO: Pedestrians are reflected in an electronic board displaying various stock prices at a brokerage in Tokyo, Japan, February 4, 2016. REUTERS/Yuya Shino

In a sign the gloomy mood will reverberate across markets, European and U.S. stock futures were a sea of red. Eurostoxx 50 futures lost 1.7% while futures for Germany’s DAX and those for London’s FTSE dropped 1.3% each.

MSCI’s broadest index of Asia-Pacific shares outside Japan slid more than 3% to a one-month low, its steepest one-day percentage loss since May 2020.

For the week the index is down more than 5%, its worst weekly showing since March last year when the coronavirus pandemic had sparked fears of a global recession.

Friday’s carnage was triggered by a whiplash in bonds.

The scale of the sell-off prompted Australia’s central bank to launch a surprise bond buying operation to try and staunch the bleeding.

Yields on the 10-year Treasury note eased back to 1.538% from a one-year high of 1.614%, but were still up a startling 40 basis points for the month in the biggest move since 2016.

“Bond yields could still go higher in the short term though as bond selling begets more bond selling,” said Shane Oliver, head of investment strategy at AMP.

“The longer this continues the greater the risk of a more severe correction in share markets if earnings upgrades struggle to keep up with the rise in bond yields.”

Markets were hedging the risk of an earlier rate hike from the Federal Reserve, even though officials this week vowed any move was long in the future.

Fed fund futures are now almost fully priced for a rise to 0.25% by January 2023, while Eurodollars have it discounted for June 2022.

Even the thought of an eventual end to super-cheap money sent shivers through global stock markets, which have been regularly hitting record highs and stretching valuations.

“The fixed income rout is shifting into a more lethal phase for risky assets,” says Damien McColough, Westpac’s head of rates strategy.

“The rise in yields has long been mostly seen as a story of improving growth expectations, if anything padding risky assets, but the overnight move notably included a steep lift in real rates and a bringing forward of Fed lift-off expectations.”

Japan’s Nikkei shed 3.7% and Chinese blue chips joined the retreat with a drop of 2.5%.

EMERGING STRAINS

Overnight, the Dow fell 1.75%, while the S&P 500 lost 2.45% and the Nasdaq 3.52%, the biggest decline in almost four months for the tech-heavy index.

Tech darlings all suffered, with Apple Inc, Tesla Inc, Amazon.com Inc, NVIDIA Corp and Microsoft Corp the biggest drags.

All of that elevated the importance of U.S. personal consumption data due later on Friday, which includes one of the Fed’s favoured inflation measures.

Core inflation is actually expected to dip to 1.4% in January, which could help calm market angst, but any upside surprise would likely accelerate the bond rout.

The surge in Treasury yields also caused ructions in emerging markets, which feared the better returns on offer in the United States might attract funds away.

Currencies favoured for leveraged carry trades all suffered, including the Brazil real, Turkish lira and South African rand.

The flows helped nudge the U.S. dollar up more broadly, with the dollar index rising to 90.371. It also gained on the low-yielding yen, briefly reaching the highest since September at 106.42. The euro eased a touch to $1.2152.

The jump in yields has tarnished gold, which offers no fixed return, and dragged it down to $1,760.8 an ounce from the week’s high around $1,815.

However, analysts at ANZ were more bullish on the outlook.

“We now expect U.S. inflation to hit 2.5% this year,” they said in a note. “Combined with further depreciation in the U.S. dollar, we see gold’s fair value at $2,000/oz in the second half of the year.”

Oil prices dropped on a higher dollar and expectations of more supply.[O/R]

U.S. crude fell 67 cents to $62.86 per barrel and Brent also lost 67 cents to $66.21.

Editing by Sam Holmes

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Asian markets roiled as bond rout turns 'lethal' – Yahoo Finance

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By Wayne Cole and Swati Pandey

SYDNEY (Reuters) – Asian stocks fell by the most in nine months on Friday as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.

In a sign the gloomy mood will reverberate across markets, European and U.S. stock futures were a sea of red. Eurostoxx 50 futures lost 1.7% while futures for Germany’s DAX and those for London’s FTSE dropped 1.3% each.

MSCI’s broadest index of Asia-Pacific shares outside Japan slid more than 3% to a one-month low, its steepest one-day percentage loss since May 2020.

For the week the index is down more than 5%, its worst weekly showing since March last year when the coronavirus pandemic had sparked fears of a global recession.

Friday’s carnage was triggered by a whiplash in bonds.

The scale of the sell-off prompted Australia’s central bank to launch a surprise bond buying operation to try and staunch the bleeding.

Yields on the 10-year Treasury note eased back to 1.538% from a one-year high of 1.614%, but were still up a startling 40 basis points for the month in the biggest move since 2016.

“Bond yields could still go higher in the short term though as bond selling begets more bond selling,” said Shane Oliver, head of investment strategy at AMP.

“The longer this continues the greater the risk of a more severe correction in share markets if earnings upgrades struggle to keep up with the rise in bond yields.”

Markets were hedging the risk of an earlier rate hike from the Federal Reserve, even though officials this week vowed any move was long in the future.

Fed fund futures are now almost fully priced for a rise to 0.25% by January 2023, while Eurodollars have it discounted for June 2022.

Even the thought of an eventual end to super-cheap money sent shivers through global stock markets, which have been regularly hitting record highs and stretching valuations.

“The fixed income rout is shifting into a more lethal phase for risky assets,” says Damien McColough, Westpac’s head of rates strategy.

“The rise in yields has long been mostly seen as a story of improving growth expectations, if anything padding risky assets, but the overnight move notably included a steep lift in real rates and a bringing forward of Fed lift-off expectations.”

Japan’s Nikkei shed 3.7% and Chinese blue chips joined the retreat with a drop of 2.5%.

EMERGING STRAINS

Overnight, the Dow fell 1.75%, while the S&P 500 lost 2.45% and the Nasdaq 3.52%, the biggest decline in almost four months for the tech-heavy index.

Tech darlings all suffered, with Apple Inc, Tesla Inc, Amazon.com Inc, NVIDIA Corp and Microsoft Corp the biggest drags.

All of that elevated the importance of U.S. personal consumption data due later on Friday, which includes one of the Fed’s favoured inflation measures.

Core inflation is actually expected to dip to 1.4% in January, which could help calm market angst, but any upside surprise would likely accelerate the bond rout.

The surge in Treasury yields also caused ructions in emerging markets, which feared the better returns on offer in the United States might attract funds away.

Currencies favoured for leveraged carry trades all suffered, including the Brazil real, Turkish lira and South African rand.

The flows helped nudge the U.S. dollar up more broadly, with the dollar index rising to 90.371. It also gained on the low-yielding yen, briefly reaching the highest since September at 106.42. The euro eased a touch to $1.2152.

The jump in yields has tarnished gold, which offers no fixed return, and dragged it down to $1,760.8 an ounce from the week’s high around $1,815.

However, analysts at ANZ were more bullish on the outlook.

“We now expect U.S. inflation to hit 2.5% this year,” they said in a note. “Combined with further depreciation in the U.S. dollar, we see gold’s fair value at $2,000/oz in the second half of the year.”

Oil prices dropped on a higher dollar and expectations of more supply.[O/R]

U.S. crude fell 67 cents to $62.86 per barrel and Brent also lost 67 cents to $66.21.

(Editing by Sam Holmes)

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Canada should invest in facilities to make vaccines for next pandemic, says Moderna co-founder – CTV News

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  1. Canada should invest in facilities to make vaccines for next pandemic, says Moderna co-founder  CTV News
  2. Vaccines, excellent real world data  Dr. John Campbell
  3. COVID-19: Vaccinating B.C. kids could be critical to achieving herd immunity  Vancouver Sun
  4. Vaccine ‘ramp-up phase’: 1.3M Moderna doses in March; more than 10M Pfizer by June  CTV News
  5. Canada receives largest COVID-19 vaccine shipment to date | News  Daily Hive
  6. View Full coverage on Google News



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