The Canadian economy defied odds, and became more dependent on real estate investment. Statistics Canada (Stat Can) residential investment data shows a surge in current dollars for Q2 2021. The most recent quarter showed a massive climb — much bigger than GDP in general. This pushed residential investment’s share of the economy to a new […]
Canada’s housing market giveth and taketh away. BMO senior economist Sal Guatieri dropped some notes on plummeting residential investment today. The segment of gross domestic product (GDP) fell so fast in Q2 2021, it held the whole economy back. The bank warned this is just the beginning for housing investment, as it comes back to […]
Canada’s faster-than-expected economic recovery just came to an unexpected halt. Statistics Canada (Stat Can) data shows gross domestic product (GDP) declined in Q2 2021. The Bank of Canada (BoC) expected robust growth this quarter, so they were way off. Weak growth now places the country in a tricky situation, with high inflation and low GDP […]
The Canadian economy suffered some setbacks last month, but they’re likely to resolve. BMO‘s Canadian Business Activity Index (BAI) advanced in July, showing an improving environment. Erik Johnson, one of the bank’s economists, said the growth was much smaller than a month before though. This may appear concerning at first, but the bank believes this […]
Canada is seeing a shortage of labor, but no one wants to pay more. BMO chief economist Douglas Porter broke down June’s average wage earnings. He found wages aren’t rising very much, especially when considering rising vacancies and high inflation. Canadian Wages Have Been Showing Low Growth Canadian wages aren’t growing very fast, even with […]
The Canadian economy is slowly recovering, but the unemployment rate is still elevated. Somehow small businesses are unable to find unskilled labor, even as wages rip higher. National Bank Canada (NBC) deputy chief economist Matthieu Arseneau attributes this to generous income support. In the bank’s opinion, the support has created a “disincentive” to work. Canadian […]
Canada is in election mode, and all politicians have a plan to cool real estate markets. The thing is, most markets have begun to cool on their own. Canadian Real Estate Association (CREA) data shows a third of markets made a monthly pullback in July. The trend is likely to get stronger as well, as […]
Lumber prices continue to spiral lower, and that might be a good thing for home prices. The commodity surged throughout the pandemic, hitting an absurd high in May. Since then, prices have plummeted back to reality at a rapid pace, wiping out all of this year’s gains. This can result in a huge discount for […]
Since the pandemic began, Canadian households have never been better. They’re saving more, they’re defaulting less, and some have even begun to poop rainbows. At least that’s what the narrative has been. Non-mortgage loan (A2) filings with the Office of the Superintendent of Financial Institutions (OSFI) shows that may not be the case. Expected credit […]
Canadian real estate prices are still fast-growing, but showing signs of cooling. The Teranet–National Bank of Canada House Price Index (TNHPI) hit a new record high in July. Annual growth for the index shows acceleration for every month for a whole year now. Signs of cooling exist though, including falling home sales and over half […]
