Briefly:

(March 10, 2008) Despite concerns of an economic slowdown and fears that the housing market could collapse, Canadian housing starts jumped 15.4% in February, to 256,900.

That beat expectations by almost 47,000 starts. Multiple-unit housing starts were the strongest segment, making up 140,700 starts. Almost all regions showed improvement, with Alberta, Saskatchewan and Manitoba showing the only signs of a slowdown from January.

“Residential construction in Canada continues to escape the storm ravaging the sector south of the border and to provide solid support for our domestic economy,” wrote BMO senior economist Robert Hogue, in an analyst’s note. “However, the deterioration in affordability and growing economic uncertainty should gradually slow home-building activity in the months ahead. The shift towards multi-unit dwellings also raises the risk of increased volatility in the sector.”

Credit union group fights takeover

(March 10, 2008) Western Financial Group’s bid to expand by taking over an Alberta credit union is meeting with opposition from the head of the body representing credit unions in that province.

“Western Financial Group’s bid to take over Community Savings and make it into a publicly traded bank is inconsistent with credit union values,” says Graham Wetter, president and CEO of Alberta Central.

Wetter points out that credit unions are beholden to their members, and not shareholders, which allows them to better serve their members.

“Banks operate according to a very different philosophy and corporate structure, and are simply unable to deliver the credit union advantage to their customers,” he says. “We are committed to doing what is best for our member-owners, not a group of private shareholders. This is how we differentiate ourselves, and this is why our members do business with us.”

(03/10/08)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.