Canada's real estate market means business
The Canadian real estate market has seen its share of ups and downs.
As the market continues to fluctuate, there are some provinces performing better than others in terms of real estate sales.
RELATED TOPIC: Where’s the housing boom in Canada?
With healthy home-buying in mind, here is a brief look at Canada's real estate market:
Canadian real estate statistics
In order to gain a better understanding of the real estate market in Canada, it's important to take a look at the national statistics.
According to The Canadian Real Estate Association, yearly home sales across Canada have increased from 435,000 sales in 2011 to just more than 540,000 sales in 2015.
Additionally, new residential listings are also on the increase. In 2011, there were 860,000 new real estate listings in Canada compared to 2015 with nearly 920,000 new listings. Likewise, the average national sales price across all Canadian provinces is up by 8.1% over last year's average.
Although Canada's real estate market is on a steady upswing, not all provinces are experiencing the same sales.
Sales by province
As the following article looks at, from the floor plan to the square footage to the luxury designer wallpaper, there's a lot that goes into choosing a new home, including location. Sometimes it isn’t necessarily what is inside the house as far as design and amenities, but where in fact the house sits. With that said, a number of Canadian provinces are experiencing increased sales while others are experiencing steady decreases.
For example, sales in British Columbia are up by 4.9%, which is the largest annual sales increase in the country. Nova Scotia is a close second with a 3.7% increase, followed by New Brunswick and Quebec with 2.5% increases and Ontario with a 1.9% increase.
On the other side of the sales spectrum are those provinces that aren't performing as well.
RELATED TOPIC: Canadian housing market forecast
Manitoba for example has experienced a 2.2% decrease in annual sales and Saskatchewan is worse yet with an 11.2% decrease. However, Alberta is the hardest hit with a 19.2% annual decrease in real estate sales.
Residential real estate prices by province
Real estate pricing is a great way to tell which provinces in Canada are booming. The top three provinces for real estate prices are British Columbia, Ontario, and the Yukon.
The average price for a new home in British Columbia is $630,000, which is up $100,000 over last year. Average new home prices in Ontario are in the $480,000 range, which is up $40,000 over last year. Finally, new homes in the Yukon cost around $330,000, which is up $15,000 over last year's prices.
Future real estate trends
Based on current trends and data, the real estate market in Canada is projected to deliver modest growth over the next year. This is thanks not only to the continued success of residential real estate sales, but low-risk urbanization as well.
With an influx of Canadians moving to major cities like Toronto, Vancouver, and Montreal, developers are concentrating on urbanized real estate.
This includes converting existing commercial structures for residential purposes as well as constructing mixed-space real estate in busy downtown areas.
Although fluctuations are common, it's plain to see that Canada's real estate market truly means business.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including commercial and residential real estate.
Six issues at the top of tax and finance leaders’ agenda
New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.
According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.
And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.
Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.
Trend 1: Businesses seek more strategic counsel from tax
Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.
According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”
Trend 2: Tipping point for resourcing models
Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.
Trend 3: Digital tax administration is moving faster than expected
in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.
"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."
Trend 4: Data simplification and lower-cost resourcing are top priorities
Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.
At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”
Trend 5: Skillsets are shifting
Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.
Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact
Trend 6: 2020 brought productivity improvements
Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.