Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Ottawa townhouses
Canadian home sales rose to a fresh record in August and factory sales moved back toward pre-pandemic levels in July, reports Tuesday showed.
Existing home sales rose 6.2% in August to 55,962 according to the Canadian Real Estate Association, on top of the 26% surge it reported last month that also brought a record. The gains reflect strong demand before the pandemic and a surge of business following the loss of much of the busiest spring moving season to the Covid-19 shutdown.
The market is still being driven by a mismatch of demand and supply through the re-opening. While new listings rose 11% on the month, the 2.6 months of inventories for sale were a record low, the realtor group said. That drove up the average sales price by 19% from a year earlier to CAD586,149, much faster than overall consumer price inflation that is stuck around zero.
Another sign of a market playing catch-up: even with the surge in monthly sales, year-to-date transactions are now just 0.8% higher than year ago.
The Bank of Canada last week gave a less pessimistic forecast for 2020 growth based on surprising gains in housing and signs the rest of the economy has re-opened without a dangerous second wave of the virus. Governor Tiff Macklem still signaled a long recovery with the risk of big setbacks.
Statistics Canada earlier on Tuesday also reported manufacturing sales rose 7% in July, led by a 33% jump in automobiles as companies skipped or shortened traditional summer shutdowns. The increase brings total sales to within 5% of the pre-Covid level.
Still, factory sales were a weak point in the economy even before the pandemic, and the report showed challenges for further gains. Food sales slipped as China imposed new restrictions on Canadian lobster shipments, petroleum and coal sales are 39% below year-ago levels on a slump in prices, and new factory orders are down 5% from a year earlier.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.