Out of work: Kelowna bucks national trend with more on unemployment lines

Tuesday, September 29th, 2009 | 7:00 am

By Kathy Michaels

The number of Kelowna residents in need of Employment Insurance benefits continues to climb despite the fact things are looking up in other parts of the country.

Statistics Canada reported that 787,700 Canadians received regular Employment Insurance benefits this July. That number marks a drop of 31,500, or 3.8 per cent, beneficiaries from a month earlier.

While that figure has been lauded as the first decrease in 11 months, it’s largely due to a bounce back in eastern provinces. Kelowna, on the other hand, experienced a surge in claims, both in monthly and yearly reports.

This July there were 4,010 locals receiving the subsidy, compared to 1,630 in July, 2008. Year-over-year, that’s an increase of 146 per cent. Month over month, the number rose 7.2 per cent from 3,740.

That news didn’t come as a big surprise to Dan Tellier, owner and operator of Okanagan Educational Centre, a business that offers a work search strategies program for unemployed and underemployed locals.

“I have a good pulse on what’s happening in the various sectors and I am not seeing a (bounce-back) yet,” he said.

Tellier explained that when the manufacturing sector started to stagnate, there were reverberations all the way down the supply chain and that’s impacting every aspect of the local job market.

Reflecting back on boom times, Tellier pointed out that employers were offering more and more money to lure prospective employees through their doors. Those days are no more.

“What’s somewhat unique about the Kelowna marketplace, is that wages have gone down and businesses are taking advantage of that,” he said. “The reality is that basically from two years ago, until September, 2008 wages were on the increase and employers were having difficulty retaining people. Now employers are back to the status quo.”

Of note, he said, is the retail and food service industries have again started offering lower wages.

Gloom and doom aside, Tellier said there is still work for those who know how to market themselves. On his side of things, they’ve worked to ensure that 75 per cent of the people who come through their doors find work on their way out, and that’s a mandate that they’ve continued to meet.

“There are opportunities out there and our students are finding jobs,” he said. “The key is to continue to believe in oneself… people will find work if they are competitive in their job search. Sitting at the computer, looking at help-wanted ads and never contacting the employer won’t help.”

kathy@kelowna.com

Canadian housing markets buck recession and trend upwards, says RE/MAX

KELOWNA, BC, Sept. 24 /CNW/ - With the worst of the recession over, residential real estate markets in major Canadian centres are poised for growth in the final quarter of 2009, according to a report released today by RE/MAX.

The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has made this recession one of the shortest on record for real estate. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well-underway. Percentage increases in sales from January to August 2009 were led by Vancouver, (up a substantial 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2 per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and Toronto (up 1.8 per cent to 58,421). Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 per cent year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to $239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto (up 0.3 per cent to $385,978). Nationally, average price hovers at $312,585, up 0.5 per cent over one year ago.

"The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "In terms of its impact on the resale market, by historical standards, this recession was one of the mildest. The resilience of bricks and mortar has been demonstrated time and again. While there may still be some challenges down the road, the worst is definitely behind us in the housing industry."

The recovery of Canada's resale housing markets speaks to the tremendous value Canadians place on the importance of owning a home. The number of Canadians overall who own a home has increased since 1981 from 62.1 per cent to 68.4 per cent, with some markets posting even higher homeownership rates -- Calgary (74.1), St. John's (71.5), Regina (70.1), and Edmonton (69.2). Significant gains have also been made over the same period in markets such as Ottawa -- where homeownership levels rose from 51.4 per cent to 66.7 per cent -- and Toronto, where levels rose fro m 57.3 to 67.6 per cent.

"Markets are heating up across the country," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Purchasers are clearly taking advantage of affordable prices and rock bottom interest rates. Those who missed the boat in years past have found that sitting on the sidelines can be a costly move. Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the Fall and possibly into early 2010."

Over the past thirty years, the Canadian residential real estate market has experienced three major downturns - 1981, 1989, and 2008. While there have also been regional fluctuations throughout the years, return on investment over this period has been substantial, with Vancouver, Victoria, Toronto, Regina and Ottawa leading the country in terms of price appreciation.

The overall stability of real estate as an investment has also played a role. Markets like Halifax-Dartmouth, Regina, Ottawa, Winnipeg and London have provided steady returns (especially in recent years), with minimal fluctuation.

Public sentiment can best be illustrated by a recent Angus Reid Omnibus Survey* that asked the question "In which do you feel more comfortable investing your money? The stock market or real estate." Out of 1,000 respondents from coast-to-coast, 77 per cent chose real estate. The results of the RE/MAX Bricks and Mortar Report are clearly representative of this national dynamic at work.

    Please click here to read the RE/MAX Bricks & Mortar Report:
   http://files.newswire.ca/577/REMAX-BRICKS.pdf

RE/MAX is Canada's leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.

    * The Angus Reid Omnibus Survey was conducted on September 15, 2009 and
       yields a margin of error of +3.1 per cent, 19 times out of 20.


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                            Homeownership Rates
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                          Canada and Major Centres
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                                                          1981         2006
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   Canada                                                 62.1         68.4
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   Metropolitan Areas*
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   St. John's                                             69.5         71.5
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   Halifax                                                55.6         64.0
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   Ottawa                                                 51.4         66.7
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   Toronto                                                57.3         67.6
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   London                                                 58.0         65.9
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   Winnipeg                                               59.1         67.2
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   Regina                                                 65.4         70.1
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   Calgary                                                58.4         74.1
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   Edmonton                                               57.9         69.2
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   Vancouver                                              58.5         65.1
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   Victoria                                               59.8         64.7
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   -------------------------------------------------------------------------
   Source: Canada Mortgage and Housing Corporation (May 2008)
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   * Homeownership rates based on 1986 boundaries for the Census
   Metropolitan Area (CMA)
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   Top Performing Markets by Price Appreciation
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                                           1980       YTD 2009   % Increase
   Market                                 Avg. $       Avg. $     1980-2009
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   Greater Vancouver                     $100,065     $574,061       473.7%
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   Victoria                               $85,066     $466,611       448.5%
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   Greater Toronto                        $75,694     $385,978       409.9%
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   Regina                                 $48,628     $244,088       402.0%
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   Ottawa                                 $63,177     $301,684       377.5%
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   Halifax-Dartmouth                      $53,161     $239,633       350.8%
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   Winnipeg                               $50,491     $207,006       310.0%
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   Calgary                                $93,977     $380,489       304.9%
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   London-St. Thomas                      $55,210     $213,683       287.0%
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   Newfoundland & Labrador                $52,768     $203,584       285.8%
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   Edmonton                               $84,623     $319,939       278.1%
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   Canada                                 $67,024     $312,585       366.4%
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   Source: Canadian Real Estate Association (CREA), RE/MAX
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For further information: Elaine Langhout, RE/MAX of Western Canada, (250) 860-3628; Eva Blay, Charlene McAdam, Point Blank Communications, (416) 781-3911

Fall home maintenance tips

September 21, 2009

Muriel Draaisma

Now that summer has ended, the kids have gone back to school and the days have started to get shorter, it's time to think about getting your house ready for a cooler season.

Alisa Metcalfe-Haggert, 43, a Toronto self-employed education and rehabilitation consultant, has made a long list of outside and inside things to do to prepare her east end home for the fall — everything from garden grooming and furnace cleaning to major reorganizing of clothing before winter.

GARDEN CLEANUP

As she surveys her "low maintenance" garden in the front yard of her detached home, Metcalfe-Haggert says she knows her first priority will be cutting back her flowers after the blooms shrivel and fade.

Her garden is a catching site on the street, an array of yellow, green and pink. There are black eyed susans, hostas, coneflowers, day lilies and irises crowding into view. She spent $200 on her front and back gardens this year, using transplants from the flower beds of friends to give her home a fresh look. Now, however, it's time to prune.

"I'll enjoy the flowers as long as I can but when things start to look dead and unsightly, I'll cut them back. I don't cover plants. I don't wrap things in burlap. It'll get done before it gets really cold," she says.

Her outside list includes: planting about 40 bulbs in the hopes that "at least half will survive the squirrels"; storing the garden hose inside; bringing in cushions from patio furniture; hiring a contractor to insulate under her kitchen addition; and putting the snow shovel and salt handy on the front porch for when the snow flies.

PRIDE IN HOME

Metcalfe-Haggert says it's important to maintain your home not only as a way to show you care about your residence but also as a way to keep costs down by avoiding major maintenance problems later.

"It's pride in your house, wanting to maintain it," she says. "It's maintenance and upkeep. You do it in little bits and pieces. You have to figure out what your priorities are."

HOME ORGANIZATION

Her inside list for fall includes: having the furnace cleaned and the filters replaced; making soups and stews to freeze on days when she is too busy to cook; and sorting through her clothing drawers and that of her daughter, Kaitlin, 10, putting away summer things and pulling out warmer wear.

"We purge as we go," she says. "My lifestyle is such that I need to be organized. You plan your world. It means time is optimized and you keep your costs down. I love gardening, I like cooking, so all of this is fun stuff for me."

SEASONAL MAINTENANCE

The Canadian Housing and Mortgage Corporation has its own list of things it recommends that homeowners do to prepare their houses for fall.

Ken Ruest, senior researcher in the sustainable housing policy and research group for CMHC in Ottawa, says seasonal maintenance is a good way to protect your investment. He says it also makes sense to do what you can in the fall before it gets really cold.

"Winter can be severe. If there are things that can be done while the weather is nice, why not do it then? Some things, as well, are impossible to do in winter. You can't clean your eaves troughs when the leaves inside are frozen solid and it's a matted mess," he says.

"There are also safety concerns. If you are going to put a ladder against the house to check the roof, for example, to see if the wind has broken a few shingles off, it's better to do it in the fall than on frozen ground."

HEAT IN, MOISTURE OUT

Ruest recommends the following:

– Have your furnace and heating system serviced by a qualified technician.

– Check venting systems of all of your equipment to ensure there are no obstructions. For example, check your chimney for things such as bird, squirrel and raccoon nests. If the chimney is blocked, the combustion gases are not going to leave the house. The flue needs to be open. Direct vents should be checked so that there are no bees or wasp nests.

– Clean leaves from eaves troughs and downspouts to ensure proper drainage from the roof.

– If you have a heat recovery ventilator, clean the intake grill outside and the filters inside the unit. Pour water down the condensation drain to test it.

– Ensure that the ground around your house slopes away from the foundation wall to prevent water from draining into your basement.

– Check exhaust ducts from dryers, bathroom fans and kitchen ranges that lead to the outside to make sure there are no obstructions. Check under the flaps to make sure nothing is nesting inside and clean it out.

– Vacuum electric baseboard heaters to remove dust and remove the grilles on forced air systems, and vacuum inside the ducts.

– Ensure all windows and doors shut tightly, including the door between the house and garage, if you have one. It may be time to do some weather stripping.

– Run the dehumidifier in the basement throughout the fall. It should be run from spring to fall. It helps to remove a lot of moisture.

– If you have interior screens on windows and doors, remove them and store the screens for winter. It promotes better air circulation to warm the glass and it may help to prevent condensation on windows.

For homes in rural areas, Ruest adds: "don't store firewood inside because it brings in a lot of moisture; have well water tested for quality; check the sump pump and line to ensure they work properly; if you have a septic tank, measure the sludge and scum to determine if it needs to be emptied before spring."

"These things can make a difference. They help to maintain your property," Ruest says.

thestar.com

Vacancy rates keep rising in third quarter for Canada's commercial real estate sector, report shows

(CP) – 3 hours ago

TORONTO — The amount of empty office space across Canada continued to rise in the third quarter due to higher unemployment in white-collar industries and excess inventory in some cities, a new report shows.

Vacancy rates for commercial real estate are expected to keep rising "well into 2010" as the country works through the impact of the recent recession, CB Richard Ellis Ltd. said in report released Monday.

Vacancy rates rose for the third straight quarter to an average of 9.4 per cent, up from 6.3 per cent for the same time last year, said the real estate services firm.

"Limited new job creation in Canada's 'white-collar' industries and the addition of new inventory in two of Canada's three largest office markets are cited as reasons for the increase," according to the National Office and Industrial Trends Third Quarter Report.

Commercial vacancy rates rose most noticeably Calgary, Toronto and Vancouver, the report shows.

Calgary's third quarter vacancy rate jumped to 13.1 per cent, from 4.7 per cent last year, due to the impacts of a slowdown in the oil and gas industry.

"The city's oil and gas industry and commercial market remained inexorably linked, as players both large and small continue to recognize that even Calgary has not been immune to the country's new economic reality," the report states.

In Toronto, the commercial vacancy rate rose to 9.1 per cent from 6.6 per cent last year. The vacancy rate in downtown Toronto is expected to climb further in the coming quarter as space becomes available in newly constructed office towers.

In Vancouver, vacancy rates climbed to 8.9 per cent from 5.4 per cent for the same time last year. The report said Vancouver is one of the more stable markets in the country thanks to limited new development.

Montreal's vacancy rate rose to 10.3 per cent from 8.3 per cent last year, while Halifax's rose to 10.2 per cent from 8.4 per cent.

Vacancy rates also rose in the country's smaller office markets, specifically in suburban areas, but at a lesser rate, the report shows.

It said cities with government office space also saw more stability in their commercial real estate markets.

Ottawa had the lowest overall third quarter vacancy rate in the country of 5.8 per cent compared to five per cent for the same time last year, while Winnipeg's rate came in at 7.5 per cent up from 4.8 per cent last year.

The overall vacancy rate in the Waterloo Region, home to such technology firms as Research in Motion (TSX:RIM), edged up slightly to 6.7 per cent from 6.4 per cent last year.

The report predicts vacancy rates to keep rising in the fourth quarter and into 2010, "as Canada continues to grind its way out of the recession."

Copyright © 2009 The Canadian Press. All rights reserved.

Canada’s big banks enjoy ‘stellar third quarter’ (are they really looking out for you?)

TORONTO — Canada’s big banks were basking Wednesday in the afterglow of a strong third-quarter performance that came amid a worldwide financial crisis in which scores of other financial institutions around the world crashed and burned.

At a financial forum in Toronto, senior executives trumpeted the gains banks made while looking forward to some of the opportunities the global meltdown has opened up for them, particularly outside Canada.

Royal Bank CEO Gordon Nixon said he saw “significant opportunities” for acquisitions in the next few years amid further restructuring in the financial services sector, but said the bank would proceed with caution. His comments were echoed by Scotiabank CEO Richard Waugh, who said Jamaica, Mexico and Chile all offered up chances for expansion, while Bank of Montreal CEO Bill Downe said he saw the possibility of buying troubled consumer banks in the U.S., especially in the midwest.

“I’m highly confident that there will be good deposit bases that can be acquired and high-quality branches,” Downe told the Scotia Capital forum, adding he expected U.S. authorities to ramp up bank closures over the next year. “What we’ve done is invested heavily in understanding where in the market there are banks that could be good opportunities.”

A Scotia Capital research report Wednesday noted Canadian banks had reported “stellar third-quarter earnings, better than street estimates,” and the third straight quarter of outperforming expectations. Last month for example, Royal, the country’s largest bank, reported record quarterly profit of $1.56 billion.
Altogether, the five biggest banks — the Royal, CIBC, TD, Scotiabank and Bank of Montreal — earned a combined total of $4.4 billion in third quarter profits for the three months ended July 31. That was $500 million higher than the $3.9 billion a year earlier.

That was above analyst expectations and showed the Canadian banks, despite higher loans losses and problems in some of their businesses, have weathered the recession better than most.

Compared to the U.S., where the financial crisis has seen 81 banks fail in 2009 alone, the Canadian banking system is quickly establishing itself as one of the safest in the world, and this quarter only served to cement that reputation.

Once criticized for making huge profits and squeezing consumer and corporate borrowers, the Canadian industry is now being viewed by many Canadians as prudent, solid foundations of the economy which avoided the recklessness that battered big Wall Street financial companies such as Lehman Brothers, Bear Stearns and AIG.

The Scotia Capital report attributed the positive news to strong wholesale-banking earnings and trading revenue.

“Canadian banks seem to have weathered the siege in a strong fashion,” the report states. “The most significant development this quarter, we believe, was the improvement in the net interest margin, which reversed an eight-year descent.”

Bank stocks have risen 50 per cent year-to-date, substantially outperforming the Toronto Stock Exchange, while dividend yields have been a healthy 4.1 per cent with prospects of further increases in the coming quarters.

CIBC CEO Gerry McCaughey said his bank’s strong capital levels would be used for its retail-business expansion rather than be used to reward investors.

While the bank had lower-than-expected quarterly profit in August because of funds set aside to cover bad loans, it did report a 12 per cent Tier 1 capital ratio — above the levels held by international competitors.

“Our Tier 1 (capital ration) is at the high end of what we think is required given the current environment,” McCaughey said. “But unless we have a good usage for it from the viewpoint of normal business growth, we would not be engaging in activities such as dividend increases or share buybacks in order to bring the Tier 1 down.”

Nixon said markets were showing signs of recovery and the economic tailspin was slowing. The bank’s credit profile showed improvement even in the hard hit United States, although economies around the world still faced “many challenges.”

During the forum, environmental activists asked whether Nixon was comfortable with his bank’s financing of development of the Alberta oilsands, which they view as destructive and unhealthy. Nixon said his bank tries to take a “balanced” approach and that all financial institutions invest in the energy sector.

Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.

Global economic and financial developments have been broadly in line with the Bank's expectations. Following a deep, synchronous recession, recent indicators point to the start of recovery in major economies, supported by aggressive policy stimulus and the stabilization of global financial markets. In Canada, economic growth, the output gap, and inflation in the first half of 2009 have evolved largely as expected in the Bank's July Monetary Policy Report (MPR).

Stimulative monetary and fiscal policies, improved financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are supporting domestic demand growth in Canada. Combined with recent information on inventory adjustments and automotive production, this suggests that GDP growth in the second half of 2009 could be stronger than the Bank projected in July. Total CPI inflation is still expected to trough in the current quarter before returning to the 2 per cent target in the second quarter of 2011 as aggregate supply and demand return to balance.

Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.

While the underlying macroeconomic risks to the projection are roughly balanced, the Bank judges that, as a consequence of operating at the effective lower bound, the overall risks to its inflation projection are tilted slightly to the downside.

Persistent strength in the Canadian dollar remains a risk to growth and to the return of inflation to target. In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility, consistent with the framework outlined in the April MPR.