The condominium sector continues to be the power behind the national housing market which is now seeing a steady decline in single family home construction, according to new data from Canada Mortgage and Housing Corp.

October statistics reveal a tale of two markets — a condo sector where new construction of urban multiples was up 1.7% from a month earlier and a single family home picture where starts dropped 9% from a month earlier.

Take a longer-term look and single-family home construction is now at its lowest level in two years and off more than 29% since the end of 2009. Multiple-unit starts, which are mostly made up of condominium construction, have climbed 70% during the same period and the sector is at its highest level October 2008.

Overall, new home construction was 207,600 in October on a seasonally adjusted annualized basis. That’s down from 208,800 in September but starts are in line with the 2002-2008 housing boom when they checked in at more than 200,000 a year.

Robert Kavcic, economist with BMO Capital Markets, sounded some alarm bells for the condominium market which he maintains is seeing unoccupied units — also classified as unsold — at their highest number since 1992 which is the earliest year data was available.

“On the supply side, there’s a clear divide between singles and condos, with the latter looking more vulnerable if a correction does come,” Mr. Kavcic said in a note. “Suffice it to say that while starts are again running slightly ahead of the estimated rate of household formation (about 175,000 a year), the supply situation is looking a lot tighter for single detached homes than for condos.”

Brian Johnston, the president of Monarch Construction, said the condominium market has been driven by affordability issues which includes the cost of land for single family homes.

“House prices have been going up faster than inflation for the past 10 years,” he says, noting people must travel further and further into the suburbs to buy homes that compare in price to urban condominiums. “People are saying it’s just not worth it. I’d rather sacrifice to reduce my commute times.”

Mr. Johnston also said in Toronto, which is considered the largest condominium market in North America, the provincial government has made it policy to have more intensification and discouraged low rise construction.

Despite the pace of construction, he doesn’t see condominium sales slowing anytime soon with one caveat. “I don’t see any increase in unsold condominiums. We are at like 98% sold by the time we get to occupancy,” Mr. Johnston says . “The only issue in my mind is the day interest rates start to go up, then we may have a problem. If that happens, the economics start to fall apart.”

Urbanation Inc., which tracks the Toronto condominium market, said the number of unoccupied units may be up but cautioned against comparisons with 1992 because the overall market is so much larger.

“There are 29 buildings in the category of occupying now, there are 5,627 units and 5,194 have been sold or 92%,” says Ben Myers, vice-president of Urbanation. “I mean how many projects were there in 1992? You have to expect the numbers to be skewed.”

While urban single new home construction may have seen better days, a strong market for existing homes could ultimately lead to a rebound.

In Toronto, single family detached sales have been rising since May compared to a year earlier, said Gregory Klump, chief economist with the Canadian Real Estate Association “You have to have a tight market in the resale market before new home construction picks up,” he said. “You have to have a shortage of supply and then they start building.”

Kirsten Cornelson, an economist with Royal Bank of Canada, said the volatility of the multiple-unit sector leads her to put more faith in urban singles for an overall understanding of the market.

That said, she doesn’t seem worried about the market. “We think multiples will fall back to a more normal pace,” said Ms. Cornelson. “We don’t see any reason to be alarmed. We think the Canadian housing market is in for a pretty steady period. The strength over the last couple of months is not sustainable but we don’t expect any sort of collapse.”

Source: Christine Dobby & Garry Marr, Financial Post

From 2000 to 2010, the average value of a Canadian home doubled, rising to $339,030 from $163,951. The money involved is huge, with the value of residential building permits issued across Canada in the past decade pegged at $340-billion. But even that huge figure is eclipsed by the cash pushed into home renovations in the same time period — estimated to be $450-billion.

PRAIRIE GOLD

Regina topped the list of surging housing prices. The average price of a home rose 173%, climbing to more than $258,000 from $94,518 in 10 years. Much of the increase comes from new construction, with building permit values exceeding $1.6-billion, triple the amount in the preceding decade, according to the report. And it is not abating. The first half of this year saw $172-million in building permit value being issued. The rise has hit renters hard, with the city’s tenants shelling out rents approaching those in much bigger cities. Edmonton saw the second highest price appreciation (165%), followed by Saskatoon (163%) and Winnipeg (158%).

FUTURE HOT SPOT

Winnipeg is seen as having the biggest potential for future growth, as it leads the nation with having the largest stock of older homes. More than half of the city’s owned housing was built before 1970. The report points to increasing building permit values in recent years, the city’s 25-year strategic plan and the rejuvenation from the return of the NHL as boosting future new construction and renovation — and expected rising prices.

FILLING IN

In Vancouver, small bungalows on large lots have been snapped up only to be torn down. A trend to maximize a home’s footprint means large, custom-built homes are going up in their place, providing more square footage of living space but considerably less lawn and garden. The change, the report says, is transforming what were once working-class subdivisions into trendy enclaves of large, upper-end homes, the report says. At the same time, one in every two homes sold in Greater Vancouver are condos, with an average condo price of $457,887.

CONDO CAPITAL

Toronto’s skyline has been transformed by high-rise condo development in recent years, flooding the downtown with high density housing. There was a 212% increase in the number of units sold between 2000 and 2010. The condo craze ranges from modest pads for young, first-home buyers to the most expensive sale in the city, the $28-million penthouse of the Four Seasons Residences. “Toronto has become the largest condominium market in North America,” said Michael Polzler, executive vice-president of RE/MAX Ontario-Atlantic Canada. With so much condo development, it has increased demand for single-family detached homes in core neighbourhoods, led by Leaside, where house price rose by 111%.

RENEWAL

Hamilton is an “ongoing project in renewal,” says the report, making the area an “underestimated up-and-comer.” The total value of residential building permits nearly doubled in the decade, exceeding $6.5-billion. The attraction to Hamilton has been fuelled by plenty of large, solidly built detached homes that are increasingly unattainable in Toronto, less than an hour away. The city has also been pushing the redevelopment of its brownfields for residential and mixed use projects and condos have been enthusiastically embraced, representing 24% of housing sales.

Source: Adrian Humphreys, National Post

The housing market may be a boring place for the next year, according to CMHC, as the number of starts remains near current levels and resale prices hold steady.

In its Q4 market update, Canada Mortgage and Housing Corp. said mortgage rates would likely remain at historically low levels at least until the last half of 2012. The housing market’s fate is largely tied to rates, the agency said.

Economists and market watchers have predicted a variety of scenarios for house prices in the next year, with some suggesting prices could drop as much as 10 per cent by the end of 2012. Capital Economics goes a step further, having predicted a drop of 25 per cent in the next several years as demand weakens amid higher mortgage rates.

“Should rates move lower than projected, housing starts and MLS sales could be higher than expected and house prices could grow at a faster pace than forecast,” the report stated. “Alternatively, should financial market expectations improve and interest rates move higher than projected, housing starts and MLS sales could be lower than expected and house prices could grow at a slower pace than forecast.”

CMHC said there could be as many as 470,100 resales in Canada this year, and expects that number to rise to 485,500 in 2012.

“We expect balanced market conditions to prevail and the average MLS price to remain fairly flat to the end of 2012,” the report stated.

CMHC said 186,750 new homes would be built in 2012, compared to 191,000 for 2011. Analysts generally agree that at least 175,000 new homes are needed each year to meet demand from new families and immigration.

“Ontario, Saskatchewan and Nova Scotia’s growth will be the strongest, while Prince Edward Island and British Columbia are forecast to see modest growth,” CMHC said. “The other provinces, on the other hand, are expected to see decreases. In 2012, housing starts are forecast to increase in British Columbia, Alberta and Manitoba.”

Other highlights from the report:

* Posted mortgage rates will remain relatively flat until late 2012. For 2012, the one-year posted mortgage rate is expected to be in the 3.4 to 3.8 per cent range, while the five-year posted mortgage rate is forecast to be within 5.2 to 5.7 per cent.

* Single starts have rebounded coming out of the recession. After an increase in the third quarter of this year, they are expected to moderate before rising later in 2012.

* Since the beginning of 2011, new listings steadily outpaced existing home sales. As a consequence, the resale market has moved from sellers’ to balanced market conditions.

The agency said the economic outlook for the country was uncertain, making it difficult to forecast growth in the housing market.

“Sustained financial market uncertainty has heightened risks but, there are both upside and downside risks to the outlook,” the agency stated.

The positive: “Some upsides include the potential that the U.S. could recover stronger than is forecast, thus increasing U.S. employment and economic growth. This could, in turn, boost employment growth in Canada and lead to stronger than anticipated housing demand.”

The negative: “Some downsides include a slower than expected recovery for the U.S., reduced economic growth in emerging economies and a downturn in parts of Europe. Such events could result in slower employment growth in Canada, which could lead to lower demand for housing.”

Source: Steve Ladurantaye, Globe and Mail

Vancouver Sun October 22nd, 2011

843 Union Street, Vancouver

Type: 4-bedroom, 3-bathroom detached
Size: 2,535 sq. ft.
B.C. Assessment, 2011: $815,000
Listed for: $1.075 million
Sold for: $1.05 million
Sold on: Aug. 22
Days on market: 7
Listing agent: Stephen Burke at Sutton Group – West Coast Realty
Buyer’s agent: Geoff Jarman at Sutton Group – West Coast Realty

The big sell: This heritage home in the heart of Vancouver’s Strathcona neighbourhood was purchased in 1999 for $335,000 and recently fetched more than $1 million.According to listing agent Stephen Burke, the house – it dates to 1908 — is in need of some work, but the character of the property and the location on the tree-lined Adanac bike path and opposite the Union Market were a winning combination. The three-level home sits on a high 25-by-122-foot lot and features wood floors, a large front parlour with a gas fireplace, an office/library, a country-style kitchen with eating area and gas stove, skylights and nine-foot, six-inch ceilings on the main floor. As well, it has a renovated bathroom with a two-person bathtub, a two-bedroom in-law or guest suite in the basement and a private mature garden that is overlooked by a rear deck.There are many single-family homes in the area, which is a five-minute drive to downtown.

1206 – 138 East Esplanade, North Vancouver

Type: 1-bedroom, 1-bathroom apartment
Size: 626 sq. ft.
B.C. Assessment, 2011: $388,000
Listed for: $429,000
Sold for: $410,000
Sold on: Aug. 16
Days on market: 27
Listing agent: Tyler MacDonald at Century 21 In Town Realty
Buyer’s agent: Jay McInnes at Macdonald Realty

The big sell: Buying a home that is affiliated to a hotel can pay dividends, especially when residents have access to the hotel’s amenities — as is the case with this condo in the Premiere at the Pier building. The hotel in question is the Pinnacle, which features a five-lane indoor swimming pool, a Jacuzzi, steam room, sauna, and fully equipped exercise room. This unit takes in panoramic southwesterly views of the water, city and the North Shore mountains. It has an open floor plan with white oak hardwood floors, central air conditioning, an electric fireplace, stainless-steel appliances, granite countertops and a balcony. The revitalization of this area four years ago transformed the neighbourhood from a shipyard site into a bustling community, and provided access to this portion of the city’s waterfront for the first time in 100 years. The location is close to the SeaBus, shopping, and eateries in what is now known as Lolo – the Lower Lonsdale area.

19341 0 Ave., Surrey

Type: 4-bedroom, 4-bathroom detached
Size: 3,205 sq. ft.
B.C. Assessment, 2011: $1,213,700
Listed for: $1,849,900
Sold for: $1.6 million
Sold on: Aug. 18
Days on market: 98
Listing agent: Bruce Copp at Sutton Group – West Coast Realty
Buyer’s agent: Brent Silzer at Sutton Group – West Coast Realty

The big sell: You cannot get much closer to the U.S. than this property on 0 Avenue in Surrey. Although neighbours to the south would be impressed if they could see this home, it is hidden from view via a winding driveway that is lined with tall cedar trees. It was built in 1971 in a traditional West Coast style that comprises split cedar, glass and vaulted ceilings. The interior is modern with tiled floors, a floor-to-ceiling stone fireplace, a 24-by-12-foot chef’s kitchen, media room, solarium, wine room, library and a 1,200-square-foot deck. With five acres to enjoy, there is plenty of room for a horse barn, pastures, and a guest cottage with a fireplace and view of the mountains. One of the most enticing features of the property is the lush vegetation that surrounds the home. It includes mature flower gardens, a pond and waterfall, and a variety of birds attracted by the flora.

© Copyright (c) The Vancouver Sun

While Canada doesn’t idealize home ownership to the extent the U.S. does, it is still perceived as preferable to renting. Owning is seen as permanent, renting transient, the implication being that ownership contributes more to community stability.

Owners are thought to be more involved in community activities than renters, adding to social cohesion. The pride of ownership is viewed as a motivator for owners to maintain their properties, while renters supposedly lack this incentive. There is scant research to support any of these contentions.

In any case, Canadians have pursued the holy grail of home ownership with as much zeal as their American cousins and have achieved similar rates of both ownership and indebtedness.

Canadian households, on average, now carry nearly $1.50 of debt for every dollar of income. Most of that debt is mortgage debt. Historically low interest rates have enticed buyers to get into the real estate market or to upgrade to more expensive homes. That, along with increasing real estate investment from outside Canada, especially from mainland China, has driven home prices in B.C. to record levels.

Is the market overpriced?

Vancouver lays claim to the highest median house prices in Canada and Forbes magazine ranks the city’s real estate market as the sixth most overpriced in the world. (Forbes calculated an annualized rate of return on property based on cash flows from renting, then flipped the result to produce the equivalent of a price-to-earnings ratio. Vancouver’s was 26.8; Monaco was No. 1 at 74.1.)

Each quarter RBC publishes an affordability index that examines the cost of ownership relative to household income. Most recently, it found the cost of mortgage payments, utilities and property taxes for a detached bungalow in Vancouver amounted to 92.5 per cent of a typical household’s monthly income.

“Vancouver’s housing market is without a doubt the most stressed in Canada and is facing the highest risk of a downturn,” Wright said in the affordability report.

That real estate in Vancouver is expensive is not news.

A 2008 study by Tsur Somerville, professor of real estate finance at the Sauder School of Business at the University of British Columbia, and his research assistant, Kitson Swann, determined that house prices in Vancouver would have to fall by 11 per cent to be in balance with rents; in other words, for the price-to-rent ratio to be in equilibrium.

The study assumes that the housing market is in equilibrium when the ratio of house rents to prices equals the sum of mortgage rates and cost of holding a house minus the expected long-run rate of price appreciation. House prices above their equilibrium level doesn’t guarantee they will fall, the study says. But the potential for decline is greatest in cities that have built more units than can be absorbed by the growth in households.

“Recent data,” it adds, “suggests that Vancouver is most at risk in this regard.”

A two-bedroom-plus-den, two-bathroom, 1,500-square-foot townhouse in North Vancouver was recently listed for rent at $2,200 a month. Another townhouse of similar size in the same complex was offered for sale at $649,900. The price to rent ratio of 24.6 suggests that either the property is overvalued or the rent is too low. Trulia.com, a U.S. real estate website, says a ratio of 21 or more means it’s better to rent than to buy.

Analyze this data as an investor would by dividing the annual rent by the capital cost of the property and the return — or rental yield — is 4.1 per cent. With Government of Canada benchmark bond yields trending below three per cent, an investor might consider this an adequate ROI. But mortgage payments with 25 per cent down, a 25-year amortization and a variable interest rate of three per cent would amount to roughly $2,300, which turns this into a losing proposition, even before taxes and maintenance expenses.

According to Forbes magazine, “the relationship between rental yields and housing costs matters because a low rental yield is a good indication of a stretched market — one that has a bubble — since these markets are more likely to face downward price pressures or grow at a slower rate.”

Based on the numbers then, one might draw the conclusion that Vancouver is a real estate bubble. But bubbles don’t always burst; sometimes they slowly deflate. A few analysts believe that fate awaits Vancouver.

TD Bank, for instance, forecast this summer that average house prices in Metro Vancouver will decline by 14.8 per cent by the end of 2013, but will still be worth more than they were in 2010.

A place to call home

Would-be buyers and renters can while away hours by Googling the term “buy or rent calculator” and working through various scenarios.

However, the majority of home buyers aren’t thinking about the return on investment on an asset, they’re looking for a place to raise a family, close to schools and shopping, maybe with a yard, a deck for the barbecue and a basketball hoop on the garage: a place to call home.

These misty-eyed buyers might do better than you imagine.

Consider that North Vancouver listing with the high price-to-rent ratio and low yield. If they were to rent at $2,200 a month with annual rent increases of two per cent, they’d pay $289,072 over 10 years.

If they could come up with $162,500 (for 25 per cent down) and borrow $480,000 at today’s historically low rate of three per cent (and pay $900 a year on upkeep), they’d pay $281,589.

If the house appreciated by seven per cent a year and the cost of selling it was seven per cent, the appreciation value would be $1,278,451. They’d come out ahead by $867,080.

It would take a savvy investor to beat that under current stock, bond, currency or commodity market conditions. At the same time, it is risky to have so much capital tied up in a single immovable and relatively illiquid asset.

In the final analysis, whether it is better to buy or to rent depends not so much on interest rates and ratios but rather on an individual’s goals in life. For some, home ownership is a ball and chain; for others, it is fulfilment of a dream.

Odds are that if you’re asking the question, you’ve already made up your mind.

Source: Harvey Enchin, Vancouver Sun

In a report earlier this year, Royal Bank of Canada chief economist Craig Wright suggested home ownership for a growing number of Canadians has become an impossible dream. That’s certainly true in Vancouver, where the affordability index is at record highs, with the average home price at nearly 10 times the median income.

But perhaps ownership has been oversold as an aspirational goal. As thousands of Americans have discovered, sometimes the dream becomes a nightmare.

In the United States, home ownership wasn’t just a dream, it was held up as an inalienable right. Washington pressured financial institutions to lend money to almost anyone who asked, giving rise to the NINJA mortgage (no income, no job, no assets).

Because mortgage interest was (and still is) tax deductible, homeowners did not bear the full burden of borrowing. Financial institutions turned to the wizards of Wall Street to devise derivatives that might mitigate the heightened risk.

The U.S. government had already sanctioned mortgage-based securities, having set up the Government National Mortgage Association (Ginnie Mae) in 1968 and the Federal Home Loan Mortgage Corp. (Freddie Mac) in 1970 to expand the secondary market for mortgages.

Inevitably, homeowners without the means to repay their debts defaulted on their mortgages and the derivatives based on them, including mortgage-backed securities and collateralized debt obligations, became worthless. Not knowing the extent of exposure to toxic debt, financial institutions became reluctant to lend to each other.

The result was a credit crisis that plunged much of the world into recession.

The housing crash that crippled the U.S. didn’t happen in Canada for several reasons. For a start, more prudent lending practices prevented the emergence of a significant subprime mortgage market. Canada’s regulatory regime acted as a rudder that kept the financial services industry on an even keel. And besides the capital gains exemption on the sale of a principal residence, there is no particular tax advantage in owning a home in Canada.

Measures mistakenly introduced to loosen mortgage lending rules — such as interest-only loans and 40-year amortizations — were quickly reversed, forestalling a flood of overly leveraged households.

Source: Harvey Enchin, Vancouver Sun

The Bank of Canada will keep rates on hold until the third quarter of next year amid slow global growth and the risk that Europe’s debt crisis will linger on, according to a Reuters survey released Tuesday. The poll of 40 economists and strategists showed the median forecast for the next interest-rate increase was pushed back by three months from the second quarter of 2012 projected in an August poll.

Analysts said the central bank need to raise borrowing costs is less than they previously thought because the domestic economy has not recovered strongly and the European debt crisis still dampens the global outlook. “There is slightly more slack left in the Canadian economy than where it was presumed a couple of months ago, based on how the second quarter panned out,” said Mark Chandler, head of Canadian fixed-income and currency strategy at Royal Bank of Canada.

Source: Financial Post

BC home sales rose nearly 9% in September compared to the same month last year, with the average price increasing 6% to $524,000, the B.C. Real Estate Association said Friday.

The BCREA reports that multiple listing service sales in the province rose 8.8% to 5,995 units and that sales edged up 3% in September compared to August on a seasonally adjusted basis. A total of 55,616 homes were listed on the multiple listing service at the end of September.

For individual markets, Metro Vancouver saw an average price increase of 10.5% to $751,000 in September compared to September 2010. That compares to Kamloops, which saw an increase of 11% over the same period to $286,000, and Okanagan Mainline, which saw the average price drop 6.6% to $376,000.

“Housing demand last month was bolstered by persistent low mortgage interest rates and a surge in employment,” BCREA chief economist Cameron Muir said in a statement.

Source: Brian Morton, Vancouver Sun

Vancouver Sun October 1st, 2011

2801 – 1483 Homer Street, Vancouver

Type: 2-bedroom, 2-bathroom apartment
Size: 1,106 sq. ft.
B.C. Assessment, 2011: $961,000
Listed for: $928,800
Sold for: $928,800
Sold on: July 29
Days on market: 9
Listing agent: Mario Felicella at Sutton Group – West Coast Realty
Buyers agent: Karin Smith at RE/MAX Select Properties

The big sell: The Waterford building was built by Concord Pacific in Yaletown’s Beach Crescent neighbourhood in 2003. As one of the first towers built in the area, it secured a prime position next to David Lam Park and the seawall and overlooking False Creek. This 28th-floor suite with two bedrooms and a den has views of all three, and has two full bathrooms, air conditioning, nine-foot ceilings, granite countertops, a breakfast bar and a built-in sound system. The dining area is opposite the kitchen and living area and looks onto the balcony. In-suite storage is enhanced by custom-made closet organizers. The unit also comes with a storage locker. The building has 24-hour concierge and the Club Viva fitness centre, with an 80-foot indoor swimming pool, squash courts, screening and theatre rooms, a billiards lounge, massage and spa rooms, a hobby and crafts workshop, and a guest suite.

8320 Osgoode Drive, Richmond

Type: 4-bedroom, 3-bathroom detached
Size: 1,848 sq. ft.
B.C. Assessment, 2011: $753,800
Listed for: $838,000
Sold for: $815,000
Sold on: Aug. 4
Days on market: 35
Listing agent: Patsy Hui at RE/MAX Westcoast
Buyers agent: Jesse Virk at Omax Realty Ltd.

The big sell: This three-level split home was built in 1975 in Richmond’s Rideau Park community on a lot of almost 7,000 square feet. The original owner had listed it, but not before ensuring some upgrades had been installed, including a high-efficiency furnace, a hot water tank, Bosch dishwasher, builtin microwave, and new sink and faucets in the master ensuite bathroom. In a prescient move around 15 years ago, the owner had also undertaken some substantial renovations to the property and installed an aggregate concrete patio, 10-person hot tub on the east-facing rear deck, detached workshop, central vacuum system, two gas fireplaces, security alarm system, new carpet and floor tiles, updated kitchen cabinets, and ample storage space. The property is close to No.3 Road, transit, parks and shopping.

1877 West 37th Avenue, Vancouver

Type: 4-bedroom, 1-bathroom detached
Size: 2,337 sq. ft.
B.C. Assessment, 2011: $1.631 million
Listed for: $1.398 million
Sold for: $1.5 million
Sold on: July 18
Days on market: 0
Listing agent: Karel Palla and Darryl Sjerven at RE/MAX Select Realty
Buyers agent: Josh Zheng at Royal Pacific Realty Corp.

The big sell: Proving the popularity of Vancouver’s westside homes is the sale of this Quilchena home the first day it appeared on the market. Four offers were received, with the winning bid coming in subject-free at $102,000 over the asking price. According to listing agent Karel Palla, the buyer was attracted by the location and the school catchment area, with Quilchena elementary and Point Grey secondary school easily accessible. Even the presence of an oil tank buried in the back yard did not deter the buyers, who will assume responsibility for any costs incurred by its removal. The house was built in 1913 and has original woodwork, a claw-foot bathtub, and separate family, living and formal dining rooms, with the latter two fitted with wood-burning fireplaces. As is stated in the property description, the home is livable, but the value is mostly in the land. With a level, 33-by-120-foot lot and RS5 zoning, there is the potential to increase the house to around 70 per cent of the lot size.

© Copyright (c) The Vancouver Sun

Resale home prices in Canada rose in July for the eighth consecutive month to a new record high, according to the Teranet-National Bank Composite House Price Index.

The index, which tracks price changes for repeat sales of single-family homes in six metropolitan areas, showed prices rising 1.3% in July from the previous month.

It was the fourth consecutive monthly increase exceeding one per cent and sent the index to a reading of 146.51.

Prices rose in five of the six metropolitan areas, advancing 2.3% in Calgary, 1.7% in Toronto, one per cent in Ottawa, 0.9% in Vancouver and 0.5 per cent in Montreal, while declining 0.9% in Halifax.

Five of the six areas hit all-time highs in July, with the exception being Calgary, where prices were still down 8.8% from the all-time high set in August 2007.

On an annual basis, prices were ahead 5.3%. The largest 12-month advance was in Vancouver, where prices were ahead 8.5%.

Source: Financial Post