Low interest rates, and low inventories of houses for sale, helped push house prices up almost 9 per cent across the GTA this January over last, according to statistics released by the Toronto Real Estate Board Friday.

The average sale price across the GTA hit $463,534 in January. But average price of a home in the Toronto 416 regions came in just shy of $500,000 — $499,045 — compared to $442,380 in the 905 regions, TREB says. More in the article

Canadian home prices to rise again in 2012: Report

TORONTO — Canadian home prices will continue to go up in 2012, although at a slower pace than they did last year, according to one of the country's largest real-estate sales organizations.

Royal LePage, which franchises brokerages across the country, predicted Thursday that the national average price

for resale homes will increase this year by 2.8 per cent by the end of 2012.

It said the national average price for a standard two-storey home was $375,427 in the fourth quarter of 2011, up 4.2 per cent from 2010.

"Widespread calls for a major real estate correction in 2012 simply can't be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand -- albeit at a slower pace," said Phil Soper, the president and CEO of Royal LePage Real Estate Services.

National averages don't tell the whole story, however, since there are wide variations depending on the type of home and location.

In Vancouver, a standard two-storey home had an average price of $1.1 million in the fourth quarter of 2012, up 10.9 per cent from a year ago. By contrast, two-storey homes in Atlantic Canada had an average price of $200,000 or less in several cities where increases were fairly flat compared with a year ago.

In Toronto, which is usually the country's second-most expensive real-estate market after Vancouver, Royal LePage found strong price gains for most housing types in the fourth quarter -- due to a lack of available properties and steady demand.

The Royal LePage forecast came as the Statistics Canada reported the price of new homes rose again in November, led by gains in Toronto and Montreal.

The government agency's new housing price index rose 0.3 per cent in November, after a 0.2 per cent increase in October. On an annual basis, the index was 2.5 per cent higher in November compared with November 2010.

The largest year-over-year price increases in reported by Statistics Canada were in Toronto and Oshawa, Ont., where they were up 6.2 per cent.

In 2012, Royal LePage expects that real estate values in Toronto will increase 2.6 per cent compared to 2011 -- slightly slower than the national growth rate.

In the fourth quarter, the average price for detached bungalows rose 7.2 per cent from a year earlier to $532,137; prices for standard two-storey homes rose 4.2 per cent to $629,188 and standard condos rose 3.4 per cent to $347,659.

Some economists have said housing prices in certain Canadian markets, including the Toronto area, may be too high to be sustainable and are due for a correction. However, LePage said housing prices have been high in Toronto because demand has outstripped supply.

"Inventory has been a challenge for Toronto's potential buyers throughout 2011 and this restricted supply has put upward pressure on prices," said Gino Romanese, senior vice-president for Royal LePage Real Estate Services Ltd.

"Standard condominiums in the resale market saw a more modest increase due to a healthier supply that was created by newer units coming online. However, demand for older units has increased as they are generally larger in size and preferable to (people down-sizing from houses) who are used to more space."

In Victoria and Saint John, N.B., house prices were flat or slightly down in the fourth quarter, compared with the same period of 2010.

In Saint John, detached bungalows fell 2.2 per cent year-over-year to $179,946, while standard two-storey properties slipped 0.3 per cent to $298,076. Condos were the exception, with average prices climbing 16.1 per cent year-over-year to $159,370, although LePage said those increases weren't typical.

In Victoria, standard two-storey homes were unchanged, with prices remaining at $480,000 while detached bungalows slipped 0.8 per cent to $486,000 and condos dropping 1.1 per cent to $282,000.

Your credit score is a three-digit number that can determine whether or not you get a loan

and at what rate.

Many insurance

companies also use credit scores to decide what you pay to protect your home and belongings from damage.

So, what does your credit score say about you? How can you get it? And how can you improve it?

Credit scoring was developed by Fair Isaac & Co. in the United States to help credit bureaus assess the risk to lenders.

Equifax, one of Canada’s two major credit bureaus, is licensed to use the FICO score, known as the Beacon score here. Its rival, TransUnion, uses a slightly different score (called Empirica).

Your credit score is not the same as your credit report, which shows your payment history. The credit report is free for you to check, but you can’t get your credit score without paying $15 to $25 or so to check it online.

Ignore any offers of free credit scores. They’re only teasers to sell you something else, such as a monthly credit monitoring service.

The biggest part of your score (35%) is your payment history. This shows if you pay bills on time, have any unpaid debts or have been through bankruptcies, consumer proposals or debt management plans.

If you carry an $8,000 balance on a credit card with a $10,000 limit – even if you pay the minimum on time each month – your credit score will drop. So, it pays to keep your balances down and not get close to your credit limits.

Another 15 per cent of your credit score is based on how long your accounts have been open and used. You may be a newcomer to Canada with no record of loans or someone whose spouse takes care of all credit transactions.

To be seen as a good credit risk, it’s not enough to be approved for credit. You have to use the credit you’re given.

Another 10% of your credit score depends on the balance between revolving credit (such as credit cards) and instalment loans (such as mortgages or car loans).

Lenders like to see both types of credit. Revolving credit can be maxed out since the rates are high enough to absorb losses, while instalment loans with fixed payments must be approved and supervised closely.

The remaining 10% of your score is based on how much new credit you’ve obtained or applied for. This shouldn’t be too high a percentage of all the credit shown on your file.

If you’re shopping for credit, do it within a 15-day period, since that will show as one credit inquiry.

Otherwise, do your shopping with a copy of your credit score, which you can show to lenders to find out what they will offer

you.

Banks may give the three-digit number if you ask, but they’re not supposed to give the context that goes with it.

For information, go to www.equifax.ca and www.transunion.ca. You can also read the Financial Consumer Agency of Canada’s publication, Understanding your Credit Report and Credit Score, at www.fcac.gc.ca.

Looking For A Cottage? - Savvy Buyers Are Entering The Market Now ...

Stage is set for one of the best recreational property

markets in years, says the market

Greater affordability, increased selection, and pent-up demand also key factors in 2011 season

Canada’s recreational property market is gaining serious traction as savvy purchasers take advantage of ideal conditions, setting the stage for what is expected to be the best market in recent years, according to a report released today by RE/MAX.

The 2011 RE/MAX Recreational Property Report, examining sales and trends in 46 markets across the country, found that substantial equity gains and recovering stock portfolios in major centres have contributed to an upswing in demand from coast to coast. Demand rose in 78 per cent of markets, while sales were up or on par in 41 per cent of recreational centres. Inclement weather, including a late thaw and an abundance of precipitation, resulted in a slow start in many areas, but should be offset by stronger peak season activity. While starting prices have remained relatively stable across the board, there are deals to be had in virtually every region – especially at the top end. Luxury sales, as a result, have climbed in almost half of the markets examined. Inventory levels are healthy throughout the country, although there has been some tightening reported at entry-level price points in about one-third of markets. Some of the best selection of product in recent years is now available.

Buyers who held off during the recession are back in recreational property markets from coast-to-coast. Their patience has been rewarded with more affordable recreational values and greater inventory levels. It’s the perfect storm, as ideal market conditions dovetail with wealth recovery.

The report also found that Americans are cashing out—especially in Ontario and Atlantic Canada. For many, the timing has never been better. The vast majority purchased in Canadian markets when the dollar fell to 65 cents. These sellers are now taking advantage of price appreciation and the currency exchange.

In British Columbia, the recreational property report identified prices at or near bottom. Astute purchasers—many of whom were scooping up product south of the border—are starting to cherry pick in markets where oceanfront prices are down from peak, pre-recession levels. Softer values have driven up sales in Western Canada, with transactions up or on par in 58 per cent of markets, well ahead of the national average.

Opportunities that haven’t been seen in years are now presenting themselves, especially on the West Coast. Prices are down as much as 20 per cent from peak levels reported in 2006-2007, bringing ownership within reach to many potential purchasers. The strengthening oil sector has also brought Albertans back into mix, driving demand for both local and coastal B.C. properties. 2011 could be the turning point.

In markets in Ontario, Quebec, and Atlantic Canada, the supply of recreational property has tightened considerably at the lower end, with potential price increases in store by year-end if momentum continues at the current pace.

At present, 50 per cent of markets offer recreational product at $350,000 or less, including most Ontario markets, Atlantic Canada, the Laurentians and three markets in the West—Lake Winnipeg, Canmore and Harrison Lake. Yet, even greater value exists for those willing to compromise on lot, location or type of access, such as riverfront, view properties, condominiums, fractional ownership or boat access options.

With overall economic performance improving daily and consumer confidence rising, the resurgence of Canadian recreational property markets is a natural progression. An upswing in discretionary spending is once again drawing purchasers to what is, without question, an innate Canadian pastime.

The report noted that the composition of the country’s recreational destinations continues to evolve. Fewer traditional cottages are available for sale than in years past. As the desire for the year-round lifestyle continues to drive renovation and new construction activity, these waterfront properties are disappearing from the landscape. Meanwhile, today’s average recreational getaways are truly earning the distinction as the “home away from home,” with many of the bells, whistles and comforts of their residential counterparts. The movement is challenging local municipalities to manage the delicate balance between regional growth and natural preservation—in some instances, changing recreational migration patterns in the process.

To discuss your real estate needs please contact Sloan Van Mierlo, Sales representative at Right at Home Realty Brokerage Contact Sloan at 416-986-2121 416-393-3232 or click soldwithsloan.com.

Demand for luxury homes intensifies amid rising Canadian and global wealth

Record or near-record activity reported in most major centres from coast-to-coast

Improved financial standing among high net worth individuals is the major factor driving strong sales activity at the top end of Canadian housing markets, according to a report released by RE/MAX.

RE/MAX Ontario-Atlantic Canada and RE/MAX of Western Canada examined 12 major centres from coast-to-coast and found that luxury sales have surged in close to two-thirds of housing markets between January 1 and April 30 of this year, compared to the same period in 2010. Leading in terms of percentage increases over the four-month period were Greater Vancouver (118 per cent)—where foreign investment has also played a major role—Ottawa (59 per cent), Calgary (51 per cent), Halifax-Dartmouth (27 per cent), Winnipeg (24 per cent), Hamilton-Burlington (13 per cent) and Greater Toronto (nine per cent). Six of the seven major cities—with the exception of Calgary—are poised to set new records in top-end activity by year-end. Several are just short of peak levels reported in 2010, such as Victoria, Regina, and London-St. Thomas.

Three key factors—serious equity gains, stock market recovery, and improved economic performance—have been behind the push for luxury housing product across the country. The combination also continues to bolster the bottom line of high net worth individuals both nationally and globally. The impact of that wealth is being seen in the demand for all things luxury—from homes to cars, collectibles and fine wines.

While foreign investment has augmented sales activity in several Canadian markets, its influence was only significant in Greater Vancouver. The vast majority of regions reported that locals were the primary drivers of demand for luxury product. A number of factors position Canada as an attractive option, foremost that its real estate remains a bargain by international standards, given its ranking for quality of life, political and economic stability and the strength of its property laws. To those from abroad, it’s the perfect mix.

The strength of the upper-end segment continues to defy expectations. That demand remains largely domestic speaks to the solid underpinnings of the market, while underscoring the appeal of Canadian real estate on an international stage. Western Canada, in particular, will continue to see the upside benefit of investment from abroad.

The climbing wealth factor has played a role. The financial status and number of millionaires is rising once again—a fact supported by several recent studies released by notable institutions such as CapGemini/Merril Lynch, Citi Private Bank, Deloitte Centre for Financial Services, and Investor Economics—to name a few. While estimates vary, the studies concluded that the high net worth population in Canada and/or abroad—and its corresponding fortunes—is trending upward and will experience considerable expansion moving forward. Despite the impact of the 2008/2009 global financial crisis, most millionaire portfolios/assets have improved or exceed pre-downturn levels. Of particular interest, residential real estate holdings have increased among high net worth individuals, as they express a clear preference for tangible assets. This trend is expected to continue, and serve to boost high-end residential real estate in months ahead, as the move to diversify assets continues in 2011.

As Canada’s millionaire club swells in size, inventory will play an increasing role in future, as the existing upper end housing stock struggles to keep pace with growing demand in central core areas, particularly in Canada’s gateway centres. Infill, renovation and new construction are helping to some extent—while driving up prices in tandem. The building activity is also serving to create new prime areas in areas that were once considered high-end peripherals, as well as in suburban communities.

Limited inventory levels in Canada’s largest markets have hampered sales activity to some extent in 2011, given that demand exceeds available supply. Multiple offers are occurring in both Greater Vancouver and Greater Toronto, as buyers compete for quality product in prime neighbourhoods.

To discuss your real estate needs please contact Sloan Van Mierlo, Sales representative at Right at Home Realty Brokerage Contact Sloan at 416-986-2121 416-393-3232 or click soldwithsloan.com.

10 things to check before you buy a new home

By Emily Hsieh, Shine staff

The process of buying a new home—especially if it’s your first time—is incredibly intimidating. And while there are certain things you may know you’re going to want to change upon moving in (like paint colors or retiling), if you’ve never gone through this before you may not know what else to watch out for before you sign the dotted line (just because a home is gorgeous on the outside, it’s not impervious to having a bunch of costly-to-fix issues that go way beyond the surface—remember The Money Pit?). Here, via apartmenttherapy.com, a handy checklist of all kinds of things a potential buyer should be mindful of:

1. Check the drains to make sure they’re not backed-up. To test, do a load of laundry, fill up the tub and sinks, and try to drain them all at the same time.

2. Open all the windows all the way to make sure they’re able to open and shut completely—fixing them is not only a pain, but a financial drain.

3. Turn on all the faucets and make sure they’re in working order.

4. Light a fire in the fireplace. While cleaning them is pretty easy (just call a professional chimney sweeper), you should also make sure they draft correctly.

5. Taste the water. Even if the city you live in has great water, if you’ve got old pipes, they may send out debris into yours.

6. Flush the toilets. Make sure that the toilets are able to flush toilet paper.

7. Open the electrical panel. Watch out for loose wires or ones that simply don’t connect to anything, which could be a sign of live wires inside!

8. Turn on the heat/air. Not only do you want to ensure they turn out, but check to see if they heat/cool to their designated temperatures.

9. Pull the carpets back. Peel away a corner of the carpet to verify what’s underneath (often there’s hardwood under there) and to make sure it’s not mildewing.

10.Basement moisture. Check for signs of dampness, not just on the walls, but near things like dehumidifiers, which suck water out of the air.

Dated decor, extreme customization behind bad MLS listings

May 18, 2010 Paul Gallant Special to Yourhome.ca

It took one homeowner about 45 years to collect 30,000 bobblehead dolls—and a big chunk of his home to store them. The real estate agent selling the place had to think quickly to come up with a strategy so the colourful collection wouldn’t scare away potential buyers.

“I decided to mention that he was the original owner, so people would be prepared,” says Brian Mayer, an agent for Royal LePage in Toronto. “I also made sure the remarks said that all that custom shelving would be removed.”

When it comes to creating real estate listings that will attract potential buyers to their home, sellers aren’t always the best judges of what works for the multiple listing service (MLS) at Realtor.ca. Not everybody can afford to stage their home to make it appealing to buyers, but some owners can be their own worst enemy.

Dated or eccentric decor, massive clutter and extreme customization populate the most cringe-worthy listings. The U.S.-based website Hookedonhouses.net features photos of homes overrun with stuffed animals, china and questionable murals. Mayer’s even come across a bright-orange swastika poster, which he, of course, suggested be removed. Though most homeowners will follow their agent’s lead to sell their property, some are surprised when they’re told that photographs or descriptions of their passions do not make for an effective listing.

“It’s hard to tell them to take things down or get rid of things without them taking it personal,” says Mayer. “You don’t judge them but you really have to encourage them to clean things up.” Too many family photos, too many plants, too much art—it all gets in the way of helping buyers imagine themselves living there.

Homeowners who spent a lot of money on cabinets and other custom features often see only how much money they spent on the upgrade—not the fact that the customization might be decades out of date.

“I remember one client who wanted me to mention the custom wall treatment,” says Steven Green, also an agent at Royal LePage in Toronto. “I suppose it would have been great if you had walked in there without your glasses on. It was hellacious—multicoloured and gold. They wanted me to take pictures of it for the digital virtual tour. I did, but I can’t say it looked good.”

Sometimes homeowners work hard to help sell the property—it’s just that their judgment about what potential buyers are looking for can be shaky. Stuart Sankey, a representative with Re/Max Hallmark Realty Ltd. in Toronto, remembers one client who decided to repaint the place for the listing photos. Sankey brought over an interior designer to check it out and they soon discovered that rather than opting for neutrals—the safest bet—the owner had picked out colours he had found on sale.

“The designer opened the door and, well, she’s still in therapy,” says Sankey, who suggests talking to the designer first, painting later.

Mayer remembers one seller who wanted to include photos of their family at dinner—the table fully set, the wine served—to show how many people the dining room could fit and how much fun they could have there. Then there was the home that promised parking for eight vehicles—and the photo showing eight vehicles crammed onto the pad to demonstrate it was true.

Some selling features are, to the average buyer, not features at all. To say that contaminated land was cleaned up years ago is only reminding people that the land was contaminated in the first place. A “lush” backyard garden often turns out to be overgrown. Green discourages phrases like “steps from a bus stop,” which not only emphasizes convenience but the possibility of noisy mass transit going by at all hours. “You can rephrase it so people know it’s there without thinking of the nuisance.” Green has also had to talk people out of mentioning steam rooms and saunas at properties where the facilities have not been working for years—potential buyers would end up feeling disappointed.

Of course, then there are the sellers who don’t try at all. Sankey remembers one client who filled his condo with boxes and never unpacked before putting the place back on the market, a strategy that made it all but impossible to get into the unit’s second bedroom. “He would hang his laundry to dry all over the place and pick them up as he wore them. There were crunchy white Jockeys everywhere. It was the first time I never took a picture for the listings.” Green remembers a multi-million-dollar property where the owner refused to cut the grass.

Finally, there are the overlooked details. Photos of the backyard in full bloom are a great idea, especially for a wintertime listing. Less so if they include cats, dogs and other occupants that aren’t included in the sale. Green remembers one seller who had a lovely backyard deck and submitted what would have been great photos.

“Except the barbecue was open. Your eyes went straight to it,” he says, “And it was filthy.”

To discuss your real estate needs please contact Sloan Van Mierlo, Sales representative at Right at Home Realty Brokerage Contact Sloan at 416-986-2121 416-393-3232 or click soldwithsloan.com.

Real estate fraud rare but experts warn homeowners to be on the lookout

by Malcolm Morrison, THE CANADIAN PRESS

Thursday, April 8, 2010

TORONTO - Real estate fraud is a rare thing but experts in the field say that doesn't mean people should assume it will never happen to them - considering the misery it can inflict on the unwary homeowner, it's worth knowing that it's out there and it's nasty.

"I compare the fraud issue to the lottery," said Ray Leclair of title insurance provider TitlePlus.

"There are millions of transactions in Ontario alone in real property every year. A very minute number of those are fraudulent. So for the public to win or lose in the fraud lottery, the odds are very low."

But it's not an experience you would ever want to go through, he said, even though governments have put in place some measures to make it easier for people to regain ownership title that have been fraudulently pilfered.

"At the end of the day, even if you get your title back, there's the question of (legal fees)."

There are two types of real estate fraud to be concerned about - mortgage fraud and title fraud.

Mortgage fraud is something that is more troublesome for lenders. It involves a fraudster leaving the title or ownership of a property in the current owner's name but mortgaging it without their knowledge, sometimes by fraudulently discharging the existing mortgage. It can also happen when a would-be homeowner falsifies information to get a mortgage.

"That's just a fact of lending," said Laura Parsons, manager of specialized sales for Bank of Montreal in Calgary.

"There are people out there who normally wouldn't get a loan granted to them but because they are fraudulent and give incomplete information or they don't let the lender know all the information, they end up getting approved."

What the average homeowner has to look out for is title fraud. It happens when a fraudster changes the ownership or title of a property into another name in order to sell or refinance the property.

According to the Ontario Ministry of Consumer Services, "it often involves fraudsters using stolen identity or forged documents to transfer a registered owner's title to himself or herself securing a mortgage on the property and then disappearing with the mortgage proceeds."

Parsons calls it a form of identity theft.

"So they know all the details of the person, they go to the land title registry, they pull a title and they find out that there is no encumbrance on the property," she said.

"Now they have basically a ticket to sell the property, so they go in and they can change home ownership."

If the fraudster has enough information, they can change ownership of the property at a land titles office, put a property in their own name. Then they either sell it or go to the bank and get a homeowner line of credit or a mortgage put on that property for their own purposes.

You would think that you would know immediately if you had been scammed, but fraudsters aren't entirely stupid and there are ways to delay finding out.

"They have gone in and taken the title or put a mortgage on and then they will pay it for two or three months," said Leclair.

In the meantime, you're getting all your bills and everything looks fine.

"In the meantime, your mortgage is gone and there's a new mortgage on there - it's going to be paid for two or three months and then two or three months later, they default, there's two or three months waiting time before the bank actually does something so six months, nine months down the road, you now get an angry bank calling you, saying they're going to sell, or you get someone showing up at the door saying you're out the door."

Leclair also pointed to a fraud victim in Vancouver who started wondering why he wasn't getting his property tax bill.

He called city hall and was told "well, you sold the property."

"It's very ordinary things. You don't get a water bill, you don't get those kind of things that could be a hint that something has changed along the way."

Leclair notes that while the government has systems in place to help you if you are defrauded, it's up to the homeowner to monitor. Both he and Parsons emphasized the importance of protecting your private information as a way to avoid becoming a target of real estate fraud.

Parsons said, in particular, you want to keep your social insurance number confidential. And that means not carrying around your SIN card in your wallet where it could be lost or stolen.

"And now with these recycling bins, people are throwing more and more of their mail and personal information in the blue bin - people should get a shredder - $149 buys you some security," she said.

And consider title insurance. Not only does it protect you now and in the future, it provides coverage for fraud that may have occurred prior to your purchase of your home.

Leclair said the insurance costs about $200 to $300, depending on the value of the property, and it is good for as long as you own the home.

And one of the worst things you can do?

"I've read articles where people say the best protection against fraud is to get the biggest mortgage you can on your property - it's a fallacy," said Leclair.

"People figure, well if there's no equity in the property, how can they steal it? Well they can go in and fraudulently discharge the mortgage. I laugh every time I see this. Discharging a mortgage is probably simpler than anything else. It's the bank's signature, it's very easy to imitate. Who knows what a bank's signature looks like?"

To discuss your real estate needs please contact Sloan Van Mierlo, Sales representative at Right at Home Realty Brokerage Contact Sloan at 416-986-2121 416-393-3232 or click soldwithsloan.com.

Interest Rates

Bank of Canada Governor Mark Carney, sees a high dollar as hurting economic recovery. BLAIR GABLE/REUTERS

OTTAWA-The Bank of Canada has issued its first unequivocal warning that higher interest rates are on their way, likely in about five weeks.

The central bank’s policy statement Tuesday surprised no-one by keeping the trend-setting interest rate at the record low 0.25 per cent for another announcement date, but it was clear about where it was heading next.

The bank’s governing council declared with the economy growing faster this year than thought, as well as inflation, there was no need to stay with its “conditional commitment” that it wouldn’t touch rates until the end of the second quarter, or after June 30.

“This unconventional policy provided considerable additional stimulus during a period of very weak economic conditions,” the council wrote.

“With recent improvements in the economic outlook, the need for such extraordinary policy is now passing, and it is appropriate to begin to lessen the degree of monetary stimulus.”

Hence, the council went on, it was withdrawing the conditional commitment.

That means the bank no longer believes it has a pledge to keep the policy rate at the so-called lower bound until July and sets the stage for a quarter-point or even half-point hike on June 1, the next announcement date.

Markets had already been planning for the central bank to move off emergency rates and in the past few weeks had begun hiking fixed, longer-term mortgage rates. Once the bank does act, short-term rates and variable mortgages are also likely to be increased.

To drive home the point that the bank believes the financial crisis is over, it said it was also ending its emergency liquidity instrument — the purchase and resale agreements — that ensured money markets in Canada continued to function during the recession.

Several economists had been urging governor Mark Carney to move early on interest rates, but the vast majority felt the bank would lose credibility if it did so without a clear indication that inflation was getting out of control.

A small minority, however, argued that the economy was still too weak to warrant any increase in interest rates this year, and that doing could stall the recovery. Economists also feared that an early signal from the bank, ahead of the U.S. Federal Reserve, would light a fire under the loonie and make life even more difficult for Canada’s battered manufacturing and export sector.

The bank gave at most a mixed signal that it believes inflation is getting out of hand, however, it said it was more lively than it had expected.

Nor is the economy in danger of overheating, judging by the bank’s new forecasts for 2010, 2011 and 2012.

The bank said the economy will advance 3.7 per cent this year, 3.1 per cent next year and 1.9 per cent in 2012. In January, its last forecast, it had growth at 2.9 this year, 3.5 next and gave no estimate for 2012.

In essence, the bank has moved up growth in the near term but left it relatively unchanged in the aggregate.

“This profile reflects stronger near-term global growth, very strong housing activity in Canada, and the bank’s assessment that policy stimulus resulted in more expenditures being brought forward,” it said.

“At the same time, the persistent strength of the Canadian dollar, Canada’s poor relative productivity performance and the low absolute level of U.S. demand will continue to act as significant drags on economic activity,” it added.

As for inflation, the council said core prices have been firmer than projected, but that they were expected to ease slightly in the second quarter of this year and remain near the bank’s two per cent target over the next two years.

Total headline inflation, which includes volatile items such as gasoline prices, was expected to be higher than two per cent this year, but returning to target in the second half of 2011.

The sum of the parts, the bank said, is that the economy will return to full capacity one-quarter sooner than it had previously thought in the second quarter of 2011.

To discuss your real estate needs please contact Sloan Van Mierlo, Sales representative at Right at Home Realty Brokerage Contact Sloan at 416-986-2121 416-393-3232 or click soldwithsloan.com.

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Average Toronto house price nears $500,000

Canadian home prices to rise again in 2012: Report

Looking For A Cottage? - Savvy Buyers Are Entering The Market Now ...