OTTAWA – The Canadian Real Estate Association says annual home sales reached a new high in 2021, eclipsing the previous record set in 2020 by about 20 per cent.The association says about 667,000 residential properties changed hands in 2021, about 30 per cent more than the 10-year average.However, home sales in December were little changed from November as they rose 0.2 per cent on a seasonally-adjusted basis.On a non-seasonally-adjusted basis, CREA says sales in December totalled 35,971, down nearly 10 per cent from 39,940 in December 2020.The national average home price was $713,500 last month, up almost 18 per cent from the previous December.New listings for the month totalled 28,550, a 15 per cent fall from the 33,606 on the market during the prior December.This report by The Canadian Press was first published Jan. 17, 2022.

The Canadian Real Estate Association’s House Price Index rose by 26.6 per cent in the 12 months up to December, the fastest annual pace of gain on record. The group, which represents more than 100,000 realtors and tabulates sales data from homes that listed and sell via the Multiple Listings Service, said the supply of homes for sale at the end of the month hit an all-time low. After pausing for a few weeks in the early days of the pandemic, Canada’s housing market has been on an absolute tear for the past two years, as feverish demand from buyers wishing to take advantage of rock-bottom interest rates has drastically outpaced the supply of homes to buy. That imbalance is a major factor contributing to higher prices, as buyers have to pay more and more to outbid others because of the lack of alternatives. Various experts are suggesting that parts of the country are showing signs of being in a speculative bubble, and CREA says the biggest reason for runaway price increases is that there aren’t enough homes being put up for sale. “There are currently fewer properties listed for sale in Canada than at any point on record,” CREA’s chief economist Shaun Cathcart said. “So unfortunately, the housing affordability problem facing the country is likely to get worse before it gets better.” High prices not denting demand CREA says the average price of a Canadian home that sold on MLS in December went for $713,500. That’s actually down from the record high of more than $720,000 in November, but still well up on an annual basis. High prices don’t seem to be slowing demand, however, as 2021 was the busiest year for home sales ever. Some 666,995 residential properties traded hands on MLS last year, smashing the previous annual record by 20 per cent. “An aggressive national push to build more homes is what will address the issue, but it will probably have to be a greater amount of building than anything we’ve ever undertaken,” Cathcart said.

Millennial Money is a weekly submission-based series that provides financial advice to millennials. Read the full series here.At 34 years old, this Canadian millennial is debt-free, owns his own tiny home, and is earning just $12,000 a year.How is this possible?“I’m in a unique position. Although it’s not a conventional house, it’s still an accomplishment that many millennials aspire to,” Michael Bartz said. “I’m walking the talk when it comes to environmentalism … I think a lot of millennials would resonate with my story.” Bartz and his partner, Sara, live in Lethbridge, Alta., in a tiny home that he built, situated on a farm where they don’t pay rent or a mortgage. In exchange for their living arrangement, the two work as casual farm hands.To build the tiny home, Bartz saved $25,000 toward the build and did all the work himself when he was still on a salaried job. “I also sold anything I didn’t need to raise money,” Bartz added.Over the four years it took to get the tiny home together, Bartz invested an additional $15,000 to get his spot up to speed. “All cash. No loans or debt went into the house,” he said.Aside from mowing lawns, pruning trees and doing odd jobs on the farm, Bartz is also a part-time actor and podcast host and producer promoting environmentalism. “During harvest we were very busy, but winter is very slow. Around that work, I apply to casting calls, audition for roles, and go to various film and theatre bookings,” Bartz said. “Sometimes that means one afternoon of filming a commercial, but other times I might be on set for weeks at a time.”The podcast for Bartz is also a big focus at the moment. “I’ll be reaching out to guests, recording interviews and promoting the show. Part of my work is also applying for grant funding for the various projects I have on the go,” he added. In terms of living expenses like food, Bartz and his partner are also very frugal. “Making lunch at home is the norm. If I’m out and about I almost always bring a lunch, usually a sandwich and some fruit,” he said. On the extremely rare occasion they go out to eat, they’ll grab pizza or sushi.On set, Bartz generally gets catered meals, but on a recent gig he found himself covered for only lunch. “Most of the cast ate at a cute little cafe in the town we were staying in, but I opted for hard-boiled eggs, which I cooked ahead of time, and oatmeal heated on my little camping stove, and some fruit,” he said.Dinner is where Bartz’s frugality gets to “epic levels.” “I’ve gotten my dinners down to $1 per meal, with the dish including carbohydrates, meat protein and plenty of vegetables. This is accomplished by cooking in bulk,” he said.In terms of weekend activities, Bartz will go hiking, which he admits does cost some gas money. Still, “it’s pretty cheap entertainment,” he said. So, what are his saving goals? “Currently I’m prioritizing living as an artist, and as my income varies from month to month, I try to save as much as possible just to keep my lifestyle going,” he said.Before Bartz became an artist, he worked at a post-secondary institution. “I have a small pension from them and some savings I was able to tuck away while I worked there,” Bartz said. Long-term, if he’s able to keep saving, he hopes to buy land of his own. To get a better idea of Bartz’s day-to-day life, we asked him to share a week of expenses.The expert: Jason Heath, managing director at Objective Financial Partners Inc., on Michael’s future.Michael and Sara have carved out the life they wanted by building a tiny house and living off the grid, doing the work that fulfils them. Their experience can give others ideas about how to do the same.The fact they can make a $1 dinner that includes carbs, meat protein and plenty of vegetables is pretty impressive. Cooking in bulk like they do also saves time. By cooking 10 portions for $10 and freezing the bulk of it, they have meals that are mostly prepped and save all kinds of money on their grocery bills compared to most families.Michael saved up the cash to build his tiny home. If you build a tiny house on land you own, you can probably take out a construction mortgage. In their case, the tiny home is located on land they have arranged to use in exchange for work, so traditional bank financing would not likely have been available to them.It sounds like Michael and Sara are not saving right now but have savings from past jobs. If they were able to put away a little extra, their incomes are likely too low to benefit from RRSP contributions that are better suited for saving tax at higher incomes. TFSA contributions would be best.Michael has a pension from past work that will help with retirement income. They will not be accumulating much Canada Pension Plan (CPP) entitlement because this pension is based on contributions tied to your income. But Old Age Security (OAS) pension is based on residency in Canada. A lifelong or long-time Canadian resident is entitled to $642 per month currently — that is $7,707 annualized. The pension is indexed quarterly so generally increases slightly every three months to keep pace with the cost of living. If Michael and Sara can currently live off $12,000 per year, their OAS pensions will likely exceed that in the future (adjusted for inflation). However, there could be future costs like repairs to their tiny home, new cars, and especially health-care costs in retirement that make living off OAS in retirement a difficult feat to achieve. After all, a tiny home may not be the ideal place to live as they age and their mobility becomes more limited.Regardless, their story is a good one to prove it is possible to live frugally and happily. Their methods may be extreme, but could give others ideas about how to better budget if that is something they need or want to do.Results: He spent less. Spending in week 1: $200. Spending in week 2: $99How he thinks he did: Having lived in a tiny home, being as frugal as possible about daily expenses, Bartz said that his Week 2 spending compared to the previous week wasn’t that different.“It similar to last week. I spent a little on groceries, but that’s about it,” he said.Take-aways: Receiving the advice and hearing that the adviser was “pretty impressed,” Bartz’s main takeaway from this exercise is how his way of living could help others reconsider their housing situation.“My frugal strategies are worth sharing, and could help people live like we do, or just be in a better financial situation,” he said. However, he does recognize that the long-term viability of living in a tiny house is something people must consider. “If in 30 years we don’t want to live in a tiny house, or for health reasons we cannot, then we need to plan for what that might look like and what other expenses may present themselves,” he said. “Medical costs is a great example.”It’s why he recognizes that having more savings, even when he’s not paying rent or a mortgage, can be beneficial. “It will obviously make the transition easier.”Finally in terms of his pension, he found it “very helpful” to get a clear breakdown of exactly what they’re saving. He’s now starting to think more long-term to make sure they can tap into resources if they need to.“I know it’s easy to put off retirement until it’s right around the corner. Thinking about it now, and contributing regularly, is a good practice, regardless of your income level. Even if it’s a small amount, I will start contributing to my TFSA again,” Bartz said. Overall, he is happy to live in this unique situation.“My “extreme” frugality is mostly out of necessity to pursue the creative endeavours I find important, and is hopefully a temporary state. I would be more than happy if over time I had a more comfortable income from the arts. But if that’s not the case, I’m fine to live this way for the long-term.”Are you a millennial living in Toronto or the GTA who needs help with saving your money? Be a part of #MillennialMoney and email ekwong@thestar.ca

OTTAWA – Statistics Canada says manufacturing sales rose 2.6 per cent to $63.1 billion in November.The agency says it was the second consecutive month of growth as sales rose in 18 of the 21 industries it tracks.Sales of primary metal products rose 5.8 per cent to a record $5.8 billion in November, while sales for the petroleum and coal industry climbed 3.7 per cent to $7.2 billion, also a record.Statistics Canada says flooding in British Columbia disrupted supply chains in Western Canada and affected 28.1 per cent of manufacturing plants across the country in November, mainly through disruptions in transportation and shortages of raw materials.It estimated the lost sales due to the floods totalled $372.1 million for the month.Sales in constant dollars rose 1.9 per cent in November, indicating a higher volume of goods sold.This report by The Canadian Press was first published Jan. 17, 2022.

TORONTO – Canada’s largest airlines and the country’s busiest airport are asking the federal government to drop its rule requiring mandatory arrivals testing for COVID-19.In a letter to the federal and Ontario governments, Air Canada, WestJet and Toronto Pearson are calling for a shift of the testing capacity from the airports to the community.As COVID-19 cases have surged in recent weeks, many provinces have decided to restrict molecular PCR testing to those at a higher risk of being hospitalized from COVID-19 or who are in settings where the virus could spread more quickly. Travellers coming to Canada need to have a pre-arrival negative molecular test result for COVID-19. Once they arrive, those coming from any country other than the U.S. are tested again and must isolate until they get their results. Those coming from the United States are tested randomly.The airlines and airport say testing arriving travellers isn’t the best use of Canada’s limited testing resources. They say the percentage of positive tests for those checked at the Canada’s airports in the most recent week reported is far lower than tests in the community.Air Canada, WestJet and Pearson want the government to revert to random arrival testing of international travellers and only require isolation for those arriving from an international location if they are exhibiting symptoms or test positive on a random test. They say those who do not have any symptoms after a negative pre-departure test before travel to Canada should not be required to isolate.This report by The Canadian Press was first published Jan. 17, 2022.Companies in this story: (TSX:AC)

Trying to read Bank of Canada press releases can be a little bit like taking a Rorschach test: They’re open to an awful lot of interpretation.But after interpreting the Bank’s words these days — and looking at rising inflation — most observers are coming to a similar conclusion: Interest rates are going to be rising soon.And that, say personal finance experts, means you should be taking a close look at your household finances — including any debt as well as your investment portfolio.“Any change in the interest rates is going to have a direct impact on your household cash flow right now,” said Chuck Grace, a personal finance lecturer at Western University’s Ivey School of Business.With annual inflation hovering around seven per cent in the U.S. and at 4.7 per cent in Canada, the U.S. Federal Reserve and Bank of Canada aren’t going to sit on their hands, said Grace. And acting against inflation, he warned, means raising the key overnight interest rate from 0.25 per cent, where the Bank of Canada has kept it for almost two years, Grace said. Even Bank of Canada governor Tiff Macklem has been relatively clear, suggesting in October that the Bank could raise rates “in the middle quarters” of 2022. The Bank’s next rate decision comes Jan. 26. “When the Fed and Bank of Canada see seven per cent and 4.7 per cent inflation, they’re concerned. They’re going to do something,” said Grace, who suggested the very first thing most Canadians should do is look at their debts, whether it’s line of credit, credit cards, mortgages or car payments.Many, Grace pointed out, are at floating rates — if the Bank of Canada’s overnight starts going up, the interest you pay on many of your debts will go up, too. “You should be taking a good, hard look at any debt you hold,” says Grace “and ask ‘can I afford this at higher rates?’” Moshe Milevsky, a finance professor at York University’s Schulich School of Business, says Canadians should be looking at both sides of their personal balance sheets — liabilities and assets — before figuring out how to prepare for higher rates.“Will a rise in interest rates have any impact on what you owe and what you have to pay? What sort of liabilities do you have? Are they tied to short-term rates, are going to mature soon and you’re going to have to renew at higher rates? That’s a problem — you’ll have to reposition your balance sheet,” said Milevksy. If your mortgage or other significant debts are locked in at certain rates for the middle to long-term, you don’t need to get too worried, Milevsky said.On the asset side of the equation, Milevsky says you should take a good look at your portfolio, because any bonds you’re holding are about to take a hit.“If you’re heavy into bonds, it’s time to prepare for the fact that that party may finally be over after 30 years of rising bond prices, and you may have to reposition that side of your balance sheet,” said Milevsky. “It’s a mathematical truism, namely that when interest rates head up, the present value of a bond goes down. It’s ironclad.”The equity side of your investment portfolio, on the other hand, is a little more complex, Milevsky said.It used to be that what was bad for bonds was, broadly speaking, good for equities. That’s not necessarily the case any more, Milevsky said.RELATED STORIES“Whether and how equity prices move, that’s a lot more tenuous. That relationship seems to have been weakened over time. The performance of the economy and how COVID plays out will have a greater impact on equity markets than interest rates will,” said Milevsky. “If your business is running restaurants, I don’t think interest rates are the biggest thing that you’re concerned about right now. ‘Am I allowed to open, can I have people indoors? So some sectors of the economy are going to be sensitive to new factors that didn’t exist 10 or 15 years ago.”Ivey’s Grace, meanwhile, says that there’s nothing wrong with checking your investments. But completely revamping your investment strategy just because interest rates are going up just doesn’t make sense.“If you’re worried, talk to your adviser and tweak your portfolio. But don’t radically change it, unless your needs have radically changed,” said Grace.There’s also the danger that any gains you hope to make by switching up some of your investments will be swamped, either by fees, or taxes, points out Janet Gray, an Ottawa-based financial adviser with Money Coaches Canada.“People sometimes make emotional decisions. Before you make a big decision, actually take a look at the numbers. Sometimes the right decision is to sit, grin and do nothing,” Gray said.

WinnersAritzia Inc. (ATZ.TO) +20.4%Shares of Aritzia increased roughly 19 per cent on Thursday after the company released its third quarter fiscal 2022 results. The company reported a 63 per cent increase in revenues to $453 million, from $278 million the prior year. Net income more than doubled to $65 million, from $31 million in 2020, driven by the growth in the top line. Aritzia designs, and sells apparels and accessories for women and is based in Vancouver, B.C. Its brands include Wilfred, Babaton and TNA.Cenovus Energy Inc. (CVE.TO) +7.4%The price of West Texas Intermediate, an oil benchmark, increased from $78.23 on Monday to $81.71 on Thursday. The increase was enough to boost the share price of Cenovus Energy roughly four per cent by end of day Thursday. Cenovus develops, produces and markets crude oil, natural gas liquids and natural gas. In its third quarter fiscal 2021 results, the company reported a surge in revenues to $12.7 billion, from $3.7 billion in 2020. Net income for the quarter increased to $551 million, up from a $194 million net loss the prior year.Velan Inc. (VLN.TO) +4.2%Velan designs, manufactures, and markets industrial valves around the world. The sectors it serves include nuclear power, oil and gas, chemical and mining. In its third quarter fiscal 2021 results, the company reported an increase in revenues to $110 million (U.S.), from $71 million the year prior. Despite the growth in the top line, net income more than halved to $4.2 million, from $9.4 million in 2020, driven by a $7 million increase in administration costs. Shareholders seemed to be unperturbed, as suggested by the roughly four per cent increase in the stock price by end of day Thursday.LosersCameco Corporation (CCO.TO) -4.4%Shares of Cameco decreased roughly four per cent by end of day Friday as uranium spot prices are trending downward, decreasing from $45.75 (U.S.) per pound on Nov. 30 to $42.05 per pound on Dec. 31. Cameco produces and sells uranium, and is headquartered in Saskatoon, Sask. In its third quarter fiscal 2021 results, revenues decreased slightly to $361 million (CAD), from $379 million the prior year. The company reported a net loss of $72 million, up from a loss of $61 million in 2020, driven by a $16 million loss on derivatives, down from a $21 million gain the prior year.Tilray Brands, Inc. (TLRY.TO) -4.2%Shares of Tilray popped up on Monday after its earnings release then declined throughout the week. Tilray researches, cultivates, produces, markets and distributes cannabis products. In its second quarter fiscal 2022 results, the company reported revenues of $155 million, up from $129 million. Net income for the quarter increased to $6 million, from an $89 million loss the prior year, driven by $65 million in nonoperating income. Despite the strong quarter, shares of Tilray closed four per cent lower by end of day Thursday.OrganiGram Holdings Inc. (OGI.TO) -2.8%Organigram produces and sells cannabis and cannabis-derived products, with its adult-use recreational segment accounting for the majority of its revenues. In its first quarter fiscal 2022 results released on Tuesday, the company reported net revenues of $30 million (CAD), up from $19 million the prior year. The company’s net loss improved to $1 million, from a $34 million net loss in 2020. The improvement in its bottom line was not enough to impress shareholders, however, who pushed the share price down almost three per cent by end of day Thursday.JOIN THE CONVERSATION Anyone can read Conversations, but to contribute, you should be registered Torstar account holder. If you do not yet have a Torstar account, you can create one now (it is free)Sign InRegisterConversations are opinions of our readers and are subject to the

Spending money on your wellness can buy you relief from feeling tired and anxious amid the prolonged pandemic, high inflation and worry over what’s to come.And, it doesn’t need to cost thousands or throw you into debt to feel happier. Here are a few ways to use your money, even if it’s limited, to bring a bit more joy to your current situation.Resting and relaxingWhat can you do to set up your environment to be more restful? This might mean investing in a new set of sheets, buying the mattress you know you need but haven’t wanted to spend the money on, painting your bedroom and office off-white just like they do at a spa, changing the blinds in your bedroom so that no light creeps in while you’re trying to sleep or decluttering your most-used spaces.For me, with a newborn on my hip and a two-year-old holding my other hand for most of the day, I’m investing in two things; a meditation app that I can use when my little ones are both sleeping and a sleep training program for my wee one so that both she and I can rest better at night … soon, hopefully.ExercisingYou know this. Moving your body five times a week for 20 to 30 minutes is directly linked to better health — and better finances. The same discipline you use for your workouts is applied to the way you approach money matters like budgeting and reviewing your investments regularly. So, what can you do to get the exercise you need?For me, I bought an aerobics riser and a set of 10-pound weights last week to complete my modest home gym. The whole set up has cost just $145 — thanks to the second hand fitness gear market. For you, it might mean that you’re finally going to buy the Peloton you’ve been eyeing or you may use up the wellness credit you have through work for personal training. Or, if money is tight, you might commit to following a few fitness gurus on YouTube and doing their workouts for free a few times a week.Eating betterI hate to break it to you, but the cost of groceries and takeout isn’t going down anytime soon. Some economists actually think prices could rise further. But, you can still eat healthy and economically.A few ways to keep costs low and eat healthier are to un-refine your diet (buying more whole foods that don’t have salt or sugar added like raw oatmeal, fruits and vegetables, beans and meats); in other words, buy less prepared foods. Incorporate more vegetarian dishes. Meal plan the entire week so that you eliminate food waste (the average family throws out $1,200 a year in food). Keep takeout to a minimum, or focus your orders on nutritious dishes. It could make sense to spend money on meal boxes if that’s going to relieve stress and get you eating healthy.Investing in a weight management program like Noom or Weight Watchers might also be a great use of your funds. If it leads to better health and a more balanced relationship with food, it could be worth it. And, if you don’t have a scale at home, perhaps this is the purchase you need to make first in your weight management journey. Or consider investing in a nutrition coach or dietitian if you need extra support. Check with your benefits provider for coverage.Reading and learningGrow your brain by investing in books, courses, coaching, brain games and so on. Not everyone has the luxury of spending big bucks in this budget category, but perhaps a lower cost version of this is something you could afford — even a library card or signing up to be a beta tester for online course creators. Planning your eventual holidayRELATED STORIESSimply visioning yourself on a beach somewhere could be enough to buoy your spirits. If you’re feeling confident that you would like to travel in the not so distant future, you could start booking. For my family, we haven’t been on a vacation in almost three years, so we have gone ahead and booked a kid-friendly getaway later this Spring. Certainly there is a risk that it might not happen, but there’s also a strong chance that it will … and just the act of booking that trip has made my husband and I feel stronger. We also cashed in our stash of travel points, which brought the costs down considerably.Mental health This could be the best thing to spend your money on. What’s happening for you, your mood, your mental wellness will impact every facet of your life from how you show up in your relationship, the way you parent, your performance at work, the drive you have to workout and eat well.My advice is simple — don’t mess around with your mental health. If you need counselling, get it. If you need medication or other support, get it. Reach out to a friend if you’re struggling. The great news is that across Canada there are some incredible free or low-cost resources you can access if you are cash strapped. Yes, a lot of happiness can be found for free, but you can probably nudge it along faster by spending a bit of money on what will make you happy. So trim back in other areas of spending that aren’t strategic and refocus those dollars here.