Rain or shine, Canada’s largest bank sees much higher interest rates to combat destabilizing inflation. RBC hiked its forecast for interest rates today after the central bank increased its neutral rate forecast. By year-end, the bank sees the highest interest rates since the 2000s. Bank of Canada Raised Its Neutral Rate… Again The Bank of […]
Canada’s house rich but cash strapped Boomers are back to tapping their home equity. Regulatory filings with the Office of the Superintendent of Financial Institutions (OSFI) show reverse mortgage debt hit a new record in February. Over the past couple of years, the segment had seen a slowdown. However, growth is now suddenly back and […]
Canadian future building construction intentions tapered as interest rates climbed, shows permit data. Statistics Canada (Stat Can) data shows the value of building permits, a leading indicator, made a small dive in March. Future building plans remain elevated compared to pre-2020. However, residential plans slowed as expected after record building activity. Canadian Building Permit Values […]
Canadian real estate prices may be slowing now, but the damage got even worse in the year’s first quarter. The Desjardins Affordability Index (DAI) reached the worst level recorded in Q1 2022. Home prices continue to become more overvalued, even as incomes fall. The Desjardins Affordability Index (DAI) The DAI is an inverse affordability index […]
Canada’s hot employment market turned up a few degrees last month. Statistics Canada (Stat Can) released its Labour Force Survey showing April’s employment climbed. It was a relatively small increase, but enough to drive the unemployment rate to a new record low. Toronto and Vancouver are bucking the trend, though, both showing climbing unemployment rates. […]
US mortgage rates are climbing nearly as fast as they were cut just a few months ago. Freddie Mac released its Primary Mortgage Market Survey this week. They found the 30-year fixed rate mortgage is now well over 5%, the highest rate since 2009. Higher costs to control inflation means a lot less time repairing […]
New Zealand real estate’s epic run is fast approaching its end, and a correction looms. That was the take in the Reserve Bank of New Zealand‘s (RBNZ) May 2022 Financial Stability Report. The central bank called housing unsustainable and said gradual price declines are desirable. However, they warn a significant correction is possible. New Zealand […]
The US central bank is desperately trying to signal things are under control, despite letting inflation slip. The Federal Open Market Committee (FOMC) voted to make the largest rate hike in over 20 years. They won’t stop there, though, they hinted at similar hikes for at least the next two meetings this year. Quantitative tightening […]
Higher mortgage financing costs are derailing New Zealand’s hot real estate market. The CoreLogic New Zealand House Price Index shows home prices fell in April. It was the first decline for home prices at the national level since 2020. The firm notes two major markets even saw the biggest drop since the Global Financial Crisis […]
Greater Toronto real estate is doing some soul searching after soaring mortgage costs. Data from Altus Group and developer-group BILD GTA show new home sales cratered in March. Demand dropped across segments, but so did inventory. Despite scarce inventory, single-family home prices still saw the benchmark price drop. Toronto Single-Family Home Prices Slip, But Condos […]
