Article courtesy of Real Estate Board of Greater Vancouver, Commercial Market News, February 2012

The BCREA Commercial Leading Indicator (CLI) rose for the second consecutive quarter, advancing 1.1 points to an index level of 111. On a fourth-quarter over fourth-quarter basis, the CLI moved 1.6 per cent higher in 2011. While this is a marked slowing from the 5.2 percent surge in 2010, the index picked up considerable momentum in the third and fourth quarter of the year, more than making up for a weak first half of 2011.


The trend in the CLI turned up slightly as early softness in economic activity was smoothed out by a stronger second half of the year. This change in trend indicates a positive economic environment for the BC commercial real estate sector in 2012. “Improving economic data provided a strong tailwind for the CLI in the second half of 2011,” said Brendon Ogmundson, BCREA Economist. “However, growing anxiety surrounding the global economy could constrain the economic environment for commercial real estate this year.”The full BCREA Commercial Leading Indicator index is available at: www.bcrea.bc.ca/docs/economics-forecasts-and-presentations/clireport.pdf

Francine Tracey

604-961-6550

 
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Commercial Bond Yields

 

Canada Mortgage Bond

Canada Housing 06/15/17*: 2.05%

Canada Housing 03/15/22: 2.74%

* denotes interpolated rate

 

 

Select Government of Canada Bonds

CAN 4.00 06/01/17: 1.68%

CAN 3.25 06/01/22: 2.27%

GOC Bonds are for reference purposes only

 

 

First National Floating

Insured Cost of Funds

1.15%

 

 

Bank Prime Rate

3.00%

 

 

Posted Rate

1 Year: 3.20%

2 Year: 3.55%

3 Year: 3.95%

4 Year: 4.64%

5 Year: 5.24%

 

 

Market Commentary 

Canadian inflation clocked in at a higher than expected 2.6% for January, led by food and fuel.  It’s the second monthly increase in a row.  The price of gasoline is up 2.6% from January and nearly 9% from a year ago.  Even with the volatile elements of food and energy removed, core inflation stepped-up two notches to 2.3%.

 

In the U.S., new home sales in February fell for the third straight month.  Prices, though, climbed to their highest level in 8 months.  February sales dropped a seasonally adjusted 1.6% last month to 313,000 homes.  The median price now stands at $233,700.  The numbers suggest builders are anticipating higher demand in the coming months.

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