The Canadian Tourism Industry Benchmark Study: Where Do We Rank in the Context of the Canadian Economy? shows how the total tourism industry measures up. Using the most recent available data from 2007, the report reveals Canada’s tourism sector is performing favourably compared to other broad sectors of the economy. It ranked fourth in a composite analysis, behind: finance, insurance and real estate; wholesale and retail trade; and community, business and personal services.

It’s a strong and consistent performance over a broad range of economic and financial performance measures juxtaposed with other major economic sectors. The results suggest the tourism industry is certainly worthy of future investment considerations.

Meanwhile, the primary industries sector (agriculture, fishing and trapping, and forestry), which, like tourism represents 2% of Canada’s Gross Domestic Product, was the weakest performer in the report’s index.

The CTC commissioned The Conference Board of Canada to provide this benchmarking study on the vibrancy and competitiveness of the Canadian tourism industry.

http://www.adventuretravelnews.com/?p=472

reviewed by Moishe Alexander, CFC Canadian Funding Corp CEO

“Declining costs of home ownership during the last year were driven by significant cuts in mortgage rates along with the federal government taking an active role in supporting the mortgage securities market,” RBC said. “In the first quarter, monthly payments on a typical detached bungalow in Canada had decreased by close to 17 per cent from a year earlier.”

The average cost to own a bungalow in this year’s first quarter was $1,350 a month, down from $1,520 in 2008’s fourth quarter and $1,620 in last year’s first quarter.

RBC’s affordability index — the percentage of pre-tax monthly household income needed to maintain a home, including mortgage payments, utilities and property taxes — improved across all housing segments in Canada.

The average affordability for a bungalow in the first quarter was 39.4 per cent, down four points from 2008’s fourth quarter. It was 44.7 per cent for a standard two-storey (down five points), and 27.1 per cent for a condominium (down 2.8 points).

The average cost of maintaining a detached bungalow in Vancouver was 62.6 per cent of household income during the first quarter, while in Toronto it was 45.9 per cent, RBC said. Ottawa affordability was 39.1 per cent, Montreal 36.5 per cent, Calgary 35.1 per cent, and Edmonton 34 per cent.

From a provincial standpoint, RBC said housing affordability in British Columbia saw its biggest improvements since 1991, with the percentage of income required for various housing types dropping between 3.4 and 7.4 percentage points during the quarter. In Ontario, RBC said housing sales activity has returned to levels seen in mid-2008, largely as a result of improved affordability.

“With the turmoil in financial markets partially subsiding and the flow of credit increasing, home resale activity has rallied impressively since the late winter,” said Robert Hogue, RBC’s senior economist. “What’s most impressive is how widespread this rebound has been, with all major cities in Canada experiencing a revival.

“”With property values stabilizing and the effect of the steep drop in mortgage rates likely behind us, further improvement in affordability will depend on greater gains in family income,” Hogue added. “Those gains will be dictated by the speed of the economic recovery expected during the second half of this year.”

The RBC’s assessment follows a separate report this week from real estate agency Royal LePage that said improved housing-market conditions in this year’s second quarter points to a better overall performance in 2009 than previously anticipated.

Also, a number of local markets saw sharp spikes in sales last month, including Toronto, Ottawa and Edmonton, where new sales records were set for June.

Percentage of gross income required to own a standard bungalow in first quarter of 2009 (change from previous quarter):

British Columbia 59.0 (-6.0)

Alberta 33.2 (-4.6)

Saskatchewan 42.0 (-3.3)

Manitoba 35.3 (-2.9)

Ontario 38.6 (-4.2)

Quebec 32.3 (-2.5)

Atlantic 31.3 (-2.9)

Canada 39.4 (-4.0)

Source: RBC Economics

http://www.canada.com/Business/Home+ownership+getting+more+affordable/1771375/story.html

brought by Moishe Alexaneder, CFC Canadian Funding Corp CEO

“The majority of the decline in home prices has already occurred,” said association chief economist Cameron Muir, in a report released on Tuesday.

“Balanced markets are emerging in Victoria, Vancouver and the Fraser Valley. There’s now little downward pressure on home prices in these areas,” said Muir.

As a result, the real estate association has revised its forecast for the year, predicting the average listed price for a residential property in B.C. will decline eight per cent to $420,600 in 2009, instead of 13 per cent as originally forecasted at the beginning of the year.

Prices have stabilized because of increased demand, with seasonally adjusted home sales raising over the past three months, according to Muir.

“First-time buyers were largely absent in the late fall and winter, making it more difficult for move-up buyers to sell their current homes. The chain of ownership is now being oiled,” he said.

Lower home prices and record low interest rates have reduced the carrying cost of the average priced home 24 per cent over the last year, according to Muir.

“A significant increase in affordability has brought many first-time buyers into the market,” he said.

Muir expects stronger consumer demand to continue for the balance of the year and residential sales in 2010 to climb 10 per cent.
Moishe Alexander’s report.

http://www.victoriarealestate.ca/falling-prices-in-bcs-real-estate-market-are-levelling-off