February Inflation Rises to 1.4%

Canada's annual inflation rate rose in February to 1.4 per cent from the 1.1 per cent rate seen in January, Statistics Canada reported Thursday.

Economists had been looking for 12-month inflation to cool a bit to one per cent for February.

Higher prices for food and shelter were the primary reasons for the increase, Statistics Canada said.

Food prices increased 7.4 per cent during the 12-month period to February, following a 7.3 per cent increase in January. The main contributors to the overall jump in food costs were a 25.8 per cent hike in the price of fresh vegetables, a 9.7 per cent rise in the price of bakery and cereal products, and a 6.1 per cent increase in meat prices.

Shelter costs, the second-largest factor, increased 3.0 per cent, which was slightly less than the 3.3 per cent rise in January.

Holding inflation back was a year-over-year decline in the price Canadians were paying at the gasoline pumps. Gasoline prices in February were 19.7 per cent below levels in February last year.

Excluding gasoline, the annual inflation rate rose 2.5 per cent in the 12 months to February.

The Bank of Canada's core inflation rate — which factors out many volatile influences and is used by the central bank for the purpose of setting monetary policy, such as lending rates — advanced 1.9 per cent over the 12 months to February, identical to the increase posted in January.

David Pylyp: With declining prices in real estate, and all the talk of recession, many of the talking heads on TV (Media) are discussing deflation.  Things should be going down in price in a recession. During a recession, there should be no inflation, as we are in recession. the Bank of Canada usually increases interest rates to combat inflation. Right?

Yet here are the same people discussing the fact that although real estate values are down slightly in Toronto, vehicle prices are down, the financing options, product availability and pricing make this a good time to buy large ticket items.

What I do see happening, is a strong pend up demand from buyers that still need a place to live in Toronto and are continuing with their property search albeit carefully and with a little more prudence. Neighbourhood and indeed condominium complexes are becoming more balanced in pricing as buyers compare square footage, amenities and neighbourhood localism.

Your comments are always invited.

10 Reasons I'm happy for a recession

1. Family Dinners in with friends
2. Shorter gas lines and better prices per liter
3. Less junk mail
4. More Time with your Family/Spouse
5. Better Prices on Everything you really need
6. Bargains on vehicles and houses
7. New Business Opportunities/ Relationships
8. Time to read a book or three
9. Everyone has a chance to take a breath and decide what's important
10. New perspectives on what creates true happiness

For everything there is a season,

The spring to sow,
The summer to make hay,
The Fall is to Harvest and Give Thanks,
The Winter to stay inside and plan for the future.

This simply also applies to the economy. During the winter time, the soil must rest, rejuvenate itself for the new planting season, the snow covers the fields to remoisturize the earth, cold makes us stay in and rest for the new working season.

When applied to Real estate, the cooler markets bring better prices but more importantly they level the playing field between neighbourhoods and different complex's. Those shopping have a better selection to pick from, Sellers are forced to be realistic in their asking prices relative to the last sale, and we all have time to be thoughtful and reflective about what we are spending our money on.

If you are considering entering the market I would be pleased to hear from you....
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Marketing in a Recession

Found this article that is very on point for today's market.

Posted by Marketing Specialist - Jim Connolly

Last month, I interviewed some business owners, who not only survived the last recession but actually grew their businesses; whilst those around them saw their businesses shrink or go broke.

I wanted to know what their secret was, so I could share it with you!

It became apparent very quickly that there was a single, common thread, which was shared by each of the successful business people from the last recession.

Here’s what they told me.

The successful businesspeople continued to invest in the key areas of their business, whilst their competitors stopped investing in those same, key areas!

Marketing lessons from past recessions

During the last recession, many of the businesses that went backwards or went broke, decided to invest as little as possible in anything. They chose to hunker-down and wait for the recession to finish. As a result, they cut back on things like service contracts for their cars, office equipment etc. They also stopped most or all of their marketing.

Even in a good economy, a business with creaking infrastructure and no marketing is really going to struggle. In a recession, that approach is going to make it almost impossible to survive!
Recession marketing

During the recession, your prospective clients / customers are looking for the best value for money possible. This requires super-effective marketing, as you will need YOUR message to stand out and then convince people, more powerfully than your competitors, that YOURS is the best value for their money!

Your existing clients / customers will be hurting financially too. They will be looking for better deals and for ways to reduce their outgoings. You need to make sure they don’t go to a competitor or simply drop your service, thinking it will save them money.
This is clearly not the time to forget about your marketing.

Marketing opportunities

I believe 2009 will present some amazing opportunities. The months ahead will be a time of great change and those with the vision and courage to adapt to these changes, will get the rewards.

Use the challenges of the year ahead to position yourself in your marketplace as a provider of answers. During times of flux, people want answers and we are attracted to those who we believe have the answers we need.

Listen to what your marketplace is saying to you. Keep in regular dialogue with your clients / customers and also your prospective clients / customers.

Find ways to match the benefits of your products or services to their changing needs and ensure that you and your business are an essential resource for them!

David Pylyp; Applying the lessons that are in the article, I have more than doubled my internet activites, to be in a better position with activily signed in readership thru RSS feed and those that sign up for the insiders newsletter via email. You may like the news, commentaries and market events I post and they will make you aware of what is happening in the real estate market and West Toronto (GTA) issues. What am I doing to reach out?

The lessons I have learned from the website are that the site is information about real estate related matters. Of the more than 500 pages of content there are less than 3 pages about me.

But the exciting news is the social interaction that is available on twitter.com You can follow my activities on a daily basis thru this site. Daily updates or New video's being uploaded. Follow dpylyp /David Pylyp to your twitter account