Real estate investors were cautioned that risk happens fast, from Canada’s oldest bank. BMO Capital Markets warned clients to expect the housing market to “be tested.” Higher interest rates and the end of “too loose” policy are expected to cool price growth. In frothy real estate markets, sentiment can shift very fast when prices slow, […]
Canadian real estate prices just turned the least affordable it has been in decades. A National Bank of Canada (NBF) analysis shows affordability worsened in Q4 2021. They found this was the case for every quarter last year, as low rates encouraged higher prices. As the overnight rate rises, housing affordability is expected to further […]
Canadian household budgets aren’t just getting hit by inflation — they’re taking home less too. Statistics Canada (Stat Can) data shows household disposable income contracted in Q4 2021. This is the second consecutive quarter disposable income dropped, and it’s been a significant decline from the peak. Not great, but expected as the economy improved and […]
Canadian mortgage borrowers still in the market aren’t worried about higher interest rates, apparently. Bank of Canada (BoC) data shows new mortgage loan annual growth was negative in December. The majority of the remaining activity was issued with variable interest rates. It might not be obvious, but variable mortgage costs are essentially a bearish bet […]
Canadian unemployment fell and job vacancies are rising, creating a tighter labor market. Statistics Canada (Stat Can) payroll data shows job vacancies were climbing in December. At the same time, the unemployment rate has dropped to pre-pandemic levels. A tight labor market is usually good for wages, but that isn’t the case this time. The […]
Canada’s booming real estate market is making it rain for the industry. Statistics Canada (Stat Can) data shows agents and brokers collected record revenue in 2020. Despite a slow second quarter, elevated demand in the second half more than made up for the hiccup. Strong demand (and price growth) helped to drive the largest profit […]
US mortgage activity is suddenly slowing down as interest rates climb. The Mortgage Bankers Association (MBA) Mortgage Composite Index showed a sudden drop for the week of February 18, 2022. Seasonally adjusted mortgage application activity dropped 13.1% from the week before. On an unadjusted basis, activity dropped 11% compared to the same week a year […]
Canada prides itself on racial diversity, but that isn’t clear from the way visible minorities are paid. A new study from Statistics Canada (Stat Can) shows income earned by race and employer size. They found the average pay for visible minorities can be as much as 30% lower in similar sized workplaces. Men Earn A […]
More Canadians are working at home and realizing their home doesn’t have to be in the same province. Statistics Canada (Stat Can) studied people working from home for an employer in another province in Q1 2022. The agency found the trend is surging in growth, as remote work becomes more common. Distant suburbs of cities […]
Expectations for higher inflation in Canada are rising as it spreads to more components. BMO Capital Markets’ latest forecast contained upward revisions for the consumer price index (CPI). The measure of inflation is expected to rise faster this year as the commodity prices soar. The gap between the Bank of Canada (BoC) forecast and BMO […]
