A recent email from one of my readers:

Dear Sirs,

In view of current developments in the banking market, if one of my cheques is returned marked "insufficient funds", does that refer to me or to you?
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Canadian Tire has been talking and then experimenting with food in many ways over the last few years. One of their concepts if I remember correctly was a gasoline fill up location with a grocery store Sobeys, a fast food restaurant, and a coffee shop. I don’t know what happened to this experiment but now they are saying that next month the company will have two of their regular stores adding something like 5,000 square feet of foodstuffs. Women remain strong in the target market. Canadian Tire, one of Canada’s finest retailers can also add clothing through their Mark’s Work WearHouse connection. For years we have seen London Drugs as a food store with bargains and now Shopper’s in their 1100 stores are selling quite a variety of food staples in all their new stores and some of their older stores who can remodel. Just about every service centre where you buy the gas for your vehicle is selling certain items of food. It is a crowded marketplace to say the least.

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A new RBC study conducted during the market turmoil in October finds overall intentions to purchase a home in the next two years remain steady at 22 per cent and have not changed since January 2008. As well, renovation intentions are slightly higher than last year – up four percentage points as 70 per cent of respondents are planning to renovate or make home improvements in the next two years.

Given the choice, most Canadian homeowners would opt for hammers and paint brushes, rather than packing tape and cardboard boxes. Seventy-five per cent of Canadian homeowners say that, if their home needed major renovations, they would rather renovate, than sell and move.

While the majority of Canadians would definitely continue to renovate even if housing prices were to drop, they appear to be a little more hesitant than they were in 2007. Many Canadians seem to be choosing to renovate rather than relocate, noted Adams.

Most Canadians planning renovations will spend less than $50,000 and indicate they plan to spend $10,801 on average - up about 10 per cent from $9,850 in 2007.

When it comes to top mistakes or renovation disasters, Canadians who have completed a renovation in the past two years, blame going over budget using the wrong contractor or trades people choosing the wrong products and doing it themselves.

Renovations in B.C. are down from 70% to 69% and the average expense will be $10,064. In the province, 75% are saying renovate and remain in the home and 19% will sell. In the age group 18 –34 renovate instead of sell, 34-78 a total of 78% said renovate and don’t sell and 55 and over just renovate. Lots of renovations planned.

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According to the British Columbia Real Estate Association fall Housing Forecast, BC MLS® residential sales are forecast to decline 28 per cent from 102,805 units in 2007 to 73,700 units this year. A modest 4 per cent increase to 76,500 units is forecast for 2009.

“The erosion of consumer confidence that began with rising fuel prices earlier in the year is continuing, as the global financial crisis and volatile equity markets have BC households concerned about their own finances,” said Cameron Muir, Chief Economist.

A weaker provincial economy is expected to increase the jobless rate from 4.4 per cent this year to 4.9 per cent in 2009. “While some job losses will occur next year, BC households will remain on a relatively solid financial footing,” added Muir.

The average MLS® residential price is forecast to increase 3 per cent to $453,000 this year. However, home prices peaked in the first quarter and have been edging lower for several months. For 2009, the average price is forecast to decline 9 per cent to $413,000, with most of the decrease having already occurred by the end this year.

Downward pressure on home prices is expected to ease by the second quarter of 2009, as an increase in affordability and consumer confidence induces a modest growth in sales. The inventory of homes for sale is also expected to decline in the coming months as potential home sellers delay putting their homes on the market until conditions improve.