Skip to main content

Featured

Gas Is Still $1.81 a Litre: Why Pump Prices Won't Fall (and What to Do Before Winter)

  Canadians hoping for relief at the pump got bad news heading into this week: it isn't coming soon. The national average for regular gas was $1.81 a litre on Friday, according to Kalibrate, with provincial averages ranging from $1.557 in Alberta to $2.156 in Newfoundland, per GasBuddy. That's after a big policy move. On Friday the G7 announced plans to release 100 million barrels of oil right away, starting with diesel. Brent crude dipped on the news, then climbed back to about US$102 a barrel by the afternoon. Don't expect the release to show up at your station, because crude is only half the story. Crude oil explains only half your pump price Wood Mackenzie's Jim Mitchell says crude makes up 50 to 60 per cent of the retail price of gas. The rest is the cost of refining it, and that's where the squeeze is. Bank of Canada Governor Tiff Macklem pointed to damaged refining capacity worldwide in a Sept. 21 speech, noting that pump prices reflect crude roughly US$40 a ...
Post a Comment
Read more

article

Labels

Toronto home prices drop as affordability and interest rates bite

 

Toronto’s housing market cooled down in November as higher borrowing costs and inflation pressures dampened demand and lowered prices. According to the latest data from the Toronto Regional Real Estate Board (TRREB), the seasonally adjusted average home price fell 2.2% in November from October to C$1,104,062 ($815,769), marking the fourth decline in the last five months.

The average price was also down 18.9% from the record high of C$1,361,779 reached in February 2022, when the market was fueled by low interest rates, limited supply, and strong buyer appetite. Compared to November last year, the average price was up a modest 0.3%.

“Affordability has been a key issue in the GTA housing market this year. Inflation and elevated borrowing costs have taken their toll on affordability. This has been no more apparent than in the interest rate-sensitive housing market,” TRREB President Paul Baron said in a statement.

The Bank of Canada has raised its benchmark interest rate four times this year to 5%, a 22-year high, in an attempt to curb inflation that has soared to 4.7% in October, the highest level since 2003. The higher rates have increased the cost of mortgages for home buyers and reduced their purchasing power.

However, some relief may be on the way, as money markets are betting that the central bank will pause its tightening cycle and start cutting rates as soon as March 2024, amid signs of slowing economic growth and easing inflation pressures.

“Bond yields, which underpin fixed rate mortgages have been trending lower and an increasing number of forecasters are anticipating Bank of Canada rate cuts in the first half of 2024,” Baron said.

Meanwhile, home sales in the GTA edged higher for the first time in six months, rising 1.7% in November from October to 4,932 homes, on a seasonally adjusted basis. However, sales were still down 6% from November last year, reflecting the impact of the pandemic and the policy measures on the market activity.

New listings also increased 16.5% year-over-year in November, but at a slower pace than the 38% surge in October, indicating that some sellers may be holding back in anticipation of better market conditions.

TRREB said that despite the recent slowdown, the GTA housing market remains fundamentally strong, supported by solid population growth, improving labour market, and low inventory levels. The board expects the market to regain momentum in 2024, as the economy recovers from the pandemic and the interest rates stabilize.

Labels:

Comments

Post a Comment