Canada’s real estate industry wanted weaker stress testing, but it may have been too weak. That’s the take from BMO Capital Markets, who recently crunched the numbers. As interest rates climb, the majority of borrowers will be able to easily manage higher costs. However, recent buyers are facing rates even higher than they had been […]
Greater Toronto’s new construction housing has seen demand completely vaporize. Data from BILD GTA and Altus Group show new construction sales fell 90% in September. Prices are now falling, especially for condos which saw a $30k drop in the month. The segment was mostly bought by investors which have disappeared, helping inventory recover. Toronto New […]
Canada’s oldest bank would like a little more clarity from the country’s central bank, going forward. BMO Economics wrote to investors this week, arguing the Bank of Canada (BoC) needs to be more transparent about their inflation data. After delivering a smaller-than-expected rate hike, the BoC presented a chart to justify its move. The data […]
Canadian real estate sent household net worth soaring over the past few years, and now it’s taking some of it back. RBC Economics warned investors this week that the housing-fueled wealth boom is coming to an end. The last quarter showed the biggest drop in net worth on record, largely due to a housing correction. […]
Canada’s central bank surprised the market with a weaker-than-expected rate hike. Bank of Canada (BoC) raised the overnight rate 50 basis points (bps), hitting 3.75% — the highest in over a decade. It was double the typical pace, but the increase was still smaller than the market had priced. The central bank confirmed the market’s […]
Global real estate is entering a downturn that will kill growth, and it’s the worst in Canada. That was the gist of numbers from Oxford Economics today. The macro-research firm crunched the numbers on housing as a share of GDP, and Canada had the highest share. As home sales and building slows, this will leave […]
Low rates led to a high rise construction boom, and as they normalize things are slowing. Global real estate consulting giant RLB published the Q3 2022 update to its Crane Index. Toronto has seen a slight pullback from its peak, but the number of cranes is still elevated. High rise construction in Toronto still leads […]
Canadian real estate investors finding comfort in the fact home prices didn’t fall much during the Financial Crisis, might want to look away. Land registry giant Teranet released its House Price Index for September, and it shows a sharp drop in home prices. The index, made in partnership with National Bank of Canada (NBF) is […]
Canada has a lot of new housing supply coming in the next few months, and it should provide market relief. The CMHC reported new housing starts remain historically elevated in September. BMO Capital Markets wrote to investors, explaining the units under construction have hit a record. Significant supply will hit the market in coming months, […]
Canadian businesses and households don’t see a bright future for the economy in the upcoming months. The Bank of Canada (BoC) released its Business Outlook Survey (BOS) for Q3 2022, and showed a massive erosion of the index. The index has only seen such a substantial decline immediately before a recession. BMO warned investors that […]
