US Q4 Real GDP - January 30, 2013

The US economy unexpectedly contracted by 0.1 per cent in the fourth quarter of 2012 as growth was pulled down by the largest decline in defense spending in four decades. The US economy expanded 2.2 per cent for all of 2012.

While the modest decline in GDP is likely to spur use of the "R" word (recession) in the media, it is worth noting that today's release is the advanced estimate for real GDP and is subject to revisions which can be substantial. Moreover the contraction in output was almost entirely due to an unprecedented plunge in defense spending, which along with slower private inventory accumulation, pared 2.6 per cent from real GDP growth. In fact, the underlying details of the report were actually quite positive. Consumer spending accelerated on the largest personal income gains in four years while both business spending and residential construction investment grew at a double digit rate. These details, along with strong employment growth in recent months, suggests that US growth will pick-up in the first quarter of 2013.

“Copyright British Columbia Real Estate Association. Reprinted with permission.

 By Dave Lynn

We are proud to announce that this Jan 27th, 1:00 PM to 3:00 PM we will be hosting an Open House at 420 Linden Ave in the Fairfield West neighborhood, Victoria. This is an opportunity to visit this excellent Condo for sale in beautiful Fairfield West.

Please come with any questions you may have. In the meantime you can take a virtual tour of this Fairfield West Condo for sale.

As always please do not hesitate to give me a call at 250-592-4422 if I can answer any questions before the open house, or if you would like to book a private showing.

 By Dave Lynn
 Royal Lepage Coast Capital
 Realty - Oak Bay

BCREA ECONOMICS NOW

Consumer Price Index - January 25, 2013

Canadian consumer price inflation remained subdued in December with prices rising just 0.8 per cent, the same increase that was registered in November.  The Bank of Canada's core inflation index, which excludes the eight most volatile components of the CPI like energy and food, rose just 1.1 per cent year-over-year in December, a moderate deceleration from November.  Inflation in BC registered only 0.4 per cent year-over-year.

Core inflation continues to trend well below the Bank of Canada's two per cent target rate which suggests that the Canadian economy is still operating with a substantial amount of excess supply. Very low inflation no doubt contributed to the Bank's easing of its rate tightening bias earlier this week, pushing a potential increase in interest rates from 2013 into 2014.

Copyright British Columbia Real Estate Association. Reprinted with permission

 By Dave Lynn 

Bank of Canada Interest Rate Announcement - January 23, 2013

It may be a new year but it is the same story this morning from the Bank of Canada which once again held its target for the overnight rate at 1 per cent. The statement released in support of the interest rate decision noted that the global economic outlook is weaker than the Bank previously projected, though risk of a severe external shock to the economy has diminished. As a result, the slowdown in the Canadian economy in the second half of 2012 was more pronounced than the Bank had anticipated. The Bank has revised its estimate for economic growth in 2012 lower, to 1.9 per cent, and now forecasts 2 per cent growth in 2013 before an acceleration to 2.7 per cent in 2014. Importantly, the Bank has also shifted its expectation that the economy will reach full capacity out to the second half of 2014. On inflation, the Bank expects growth in consumer prices to run significantly below its 2 per cent target for much of 2013 before gradually rising to target in 2014.

Following two years of overly optimistic forecasts, the Bank has struck a slightly more dour tone in its outlook. The gloomier growth forecast and positive signs that households are reigning in household debt have prompted the Bank to revise its language on the gradual withdrawal of monetary stimulus.  In its concluding statement accompanying the rate decision, a key focus of monetary policy watchers over the past year,  the Bank continued to note that a withdrawal of stimulus would likely be required over time, but that the timing of any such withdrawal is less imminent than previously anticipated. This strongly suggests that interest rates will remain constant at 1 per cent for all of 2013.

 By Dave Lynn 

Today's my 5 year anniversary of being a Real Estate Agent!
I'm so lucky to have a job which allows me to meet and work with so many awesome people and help them with one of the biggest moments in their lives. I look forward to helping many more!

We are proud to announce that this Jan 13th, 1:00 PM to 3:00 PM we will be hosting an Open House at 1851 Barrett Dr in the Dean Park neighborhood, North Saanich. This is an opportunity to visit this excellent House for sale in beautiful Dean Park.

Please come with any questions you may have. In the meantime you can take a virtual tour of this Dean Park House for sale.

As always please do not hesitate to give me a call at 250-592-4422 if I can answer any questions before the open house, or if you would like to book a private showing.

 By Dave Lynn
 Royal Lepage Coast Capital
 Realty - Oak Bay