Hi Dena:

I came up last Friday, picked up the keys and left the cheque.

I went to my new Tofino home and the sun was shining and the north wind was
making

small white caps on the ocean. Leah, the Cable Gal told me what a beautiful
view it was from here.

I have never seen the view, as when I came last, it was fog and rain. It was
spectacular!

I said to myself, What a wonderful thing we have done. All small doubts that
I may have had up till

now, vanished completely.

I watched my first sunset and was overjoyed to discover that the sun set in
front of me. I had no

idea that it faced Northwest and that I would be able to witness West Coast
sunsets from my deck and

living room window. Wow!

I went surfing on Saturday and enjoyed the luxury of getting in and out of
my wetsuit in the comfort of home and

not in a cold parking lot.

Saturday morning I watched a raccoon under the dock, and a harbour seal swim
by, while having my morning coffee on my

deck. Life is good.

I love my new place sooo much.

When I arrived I saw the beautiful house warming gift that you bought me.
Very tasteful and Very thoughtful.

Thank you very much, I was truly touched and will cherish it.

Again… thanks for everything and I will see you around neighbour.

Your friend forever………Ian

The Bank of Canada kept its trend-setting Bank Rate at 1.25 per cent on April 17^th, 2012. While this was the 13^th consecutive policy meeting in which borrowing costs have been left unchanged, it was the first time since last September that a policy announcement has included a reference to the possibility of a rate hike.

The Bank reiterated a number of the more positive developments it first mentioned in the March 8^th announcement. These include a stronger profile for U.S. economic growth, as well as reduced risk emanating from Europe, which the Bank now expects will “emerge slowly from recession in the second half of 2012.”

The Bank also noted that “improved global economic prospects, supply disruptions and geopolitical risks,” are keeping oil prices up which if sustained could prove a risk to the improvement in economic momentum.

In Canada the Bank again declared the biggest risk to be high household debt, adding that it expects households will continue to add to their debt burden as “private domestic demand will account for almost all of Canada’s economic growth over the projection horizon.”

That said, with economic momentum in Canada remaining firmer than the Bank had expected back in January, the forecast for growth this year has been lifted. The Bank now expects the economy will grow at 2.4 per cent this year, up from the 2.0 per cent forecast in January.

At the same time, the Bank lowered its forecast for 2013 to 2.4 per cent from 2.8 per cent, and also extended its forecast out to 2014 with a prediction of 2.2 per cent growth.

The Bank also noted that the amount of slack in the economy had decreased. As such, the Bank now expects the economy will return to full capacity “in the first half of 2013,” which while intentionally vague is still sooner than the previous prediction for a return to full capacity by the third quarter of next year.

The Bank ended the announcement by hinting, for the first time since last September, that it may have to raise rates, stating “In light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target over the medium term. The timing and degree of any such withdrawal will be weighed carefully against domestic and global economic developments.”

Further clarification as to when these “modest” rate hikes may be expected will no doubt be the subject of the various speeches and remarks given by the Governor and his deputies between now and the next announcement on June 5^th, 2012.

As of April 17^th 2012, the advertised five-year lending rate stood at 5.44 per cent. This is up 0.2 percentage points from 5.24 per cent on March 8^th, when the Bank made its previous policy interest rate announcement.

March stats video

http://www.youtube.com/watch?feature=player_embedded&v=LTDoJmdslQ8

 VIREB represents approximately 1,070 REALTOR® members in more than 85 member offices on Vancouver Island (north of Victoria). Visit our website for updated information at: www.vireb.com

The tone of the accompanying statement was very dovish, with the Bank noting that “the global economy has slowed markedly as several downside risks to the projection outlined in the Bank’s July Monetary Policy Report (MPR) have been realized.”

Of particular note, the Bank said it now expects a “brief recession” in the Eurozone. The Bank remains of the opinion that the euro-area crisis will be contained, but flagged obvious downside risks to that assumption.

As a result of this and other factors, the Bank has downgraded its forecast Canadian economic growth this year (2.1% compared to 2.8% in the July MPR) and for 2012 (1.9% compared to 2.6% in the July MPR).

That said, the outlook for growth in 2013 was upgraded to 2.9% from 2.1%, indicating the Bank believes that anticipated stronger growth will eventually be achieved. Along with the return of more robust economic activity being pushed further out into the future, core inflation is now expected to remain below the Bank’s 2% target until the end of 2013.

What it all means is that interest rates will likely be on hold even longer. Expectations as to how long it would be before the Bank hikes rates had previously centered around the fall  of 2012, although it will now more likely be into 2013 before the Bank begins to tighten monetary policy from current levels.

As of October 25, 2011, the advertised five-year lending rate stood at 5.29 per cent. This is down 0.1 percentage points from 5.39 per cent on September 7, when the Bank made its last policy interest rate announcement.

The Bank will make its next scheduled rate announcement on December 6^th, 2011.

BC Multiple Listing Service® (MLS®) residential sales in BC are forecast to increase 3.8 per cent from 74,640 units in 2010 to 77,500 units this year, increasing a further 3.6 per cent to 80,300 units in 2012.

“Slower than expected employment growth is expected to keep BC home sales below their ten-year average through 2012,” said Cameron Muir, BCREA Chief Economist. “However, weaker global economic growth and recent uncertainty in the equity markets points to continued low mortgage interest rates which will help underpin housing demand.”   

“Following a decade where unit sales broke all records, consumer demand over the next few years will be relatively moderate,” added Muir. The ten-year BC MLS® residential sales average is 87,600 units. A record 106,300 MLS® residential sales were recorded in 2005.

BC Multiple Listing Service® (MLS®) residential sales in BC are forecast to increase 3.8 per cent from 74,640 units in 2010 to 77,500 units this year, increasing a further 3.6 per cent to 80,300 units in 2012.

“Slower than expected employment growth is expected to keep BC home sales below their ten-year average through 2012,” said Cameron Muir, BCREA Chief Economist. “However, weaker global economic growth and recent uncertainty in the equity markets points to continued low mortgage interest rates which will help underpin housing demand.”   

“Following a decade where unit sales broke all records, consumer demand over the next few years will be relatively moderate,” added Muir. The ten-year BC MLS® residential sales average is 87,600 units. A record 106,300 MLS® residential sales were recorded in 2005.