Canada’s economy is growing, but don’t let the headline data fool you—the country is still heading for recession. Statistics Canada (Stat Can) gross domestic product (GDP) data showed big growth in Q3 2022. However, taking a dive past the headline number reveals things aren’t as great as they might appear. Household spending made a rare […]
The Canadian real estate bubble got a big boost from low rates, and prices are correcting as rates soar. Home prices climbed aggressively as cheap credit flooded the mortgage market until March. As rates increased, credit was throttled, and the opposite effect began to appear. Home prices are now down significantly and likely to slip […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices To Fall 30%, Early Stages of Recession Are Here: Ox Econ Macroeconomics firm Oxford Economics warned clients that Canada’s recession is here. They believe home prices will fall 30% from peak-to-trough by next year, wiping out most growth. […]
The outlook for Canadian real estate, and the economy in general, is looking a little less bright. Oxford Economics warned clients this week, that we’re already seeing the early stages of a recession. Higher rates to cool inflation are pushing home prices much lower and prolonging the downturn. High inflation also means a stimulus windfall […]
Many Canadian mortgage borrowers are regretting walking into a low rate trap. Bank of Canada (BoC) data reveals a surge of borrowers over the past few years opting for variable rates. At the time, mortgage borrowers might have saved a few points over their fixed-rate peers. Now interest costs are making one of the most […]
The Canadian real estate bubble is bursting rapidly as rates rise, and peak buyers are in for a rough time. Canadian Real Estate Association (CREA) data shows the national market peaked in March 2022. We ran the numbers to see how much equity buyers from that month would have at this point. Most peak buyers […]
Canada’s got ninety-nine problems and mortgage debt is…. Over two trillion of them. Bank of Canada (BoC) senior deputy governor Carolyn Rogers addressed concerns about financial stability earlier today. She boiled it down to two major concerns that have been present for a long time, but are building up — household debt and housing. She […]
Canadian mortgage credit had an unusually slow month, as the hangover from higher rates starts to settle in. Bank of Canada (BoC) data shows consumer mortgages debt continued to decelerate in September. Higher rates and weak home sales combined for the slowest September in two decades. Canadians Owe Over $2.1 Trillion In Mortgage Debt Canadian […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgage Lenders See Larger Loan Losses, Average Value Soars 68% Canadian mortgage lenders are reporting significantly higher average loan losses. The average loss reached $96,000 in Q3 2022, up a whopping 68.4% (US$39,000). This indicates liquidity is falling for sellers, which […]
Canadian real estate is starting to see the first sign of stress from higher interest, and normalized demand. Canadian mortgage lenders are beginning to write off larger mortgages in Q3 2022—the largest in nearly a decade. Credit bureau data shows this isn’t a problem yet, as the share of mortgages written off continues to fall. […]
