Canadian home building costs surged as rates were cut, and stimulus fueled record demand. Policymakers assured households that it was just supply shortages and the inflation was transitory. Supply chains will scale up and prices will come down, eventually. That day is finally here for steel. It turns out that was never the goal. Earlier […]
Canadian inflation is under control, as expected with the country’s unique modeling strategy. The Statistics Canada (Stat Can) Consumer Price Index (CPI) shows annual growth slowed in July. The quick slowdown was due in part to a circular reporting model, where central bank rate decisions have significant influence on the report itself. Slowing headline inflation […]
Canadian mortgage borrowers are finding out fast that Toronto real estate isn’t always a path to riches. Equifax data shows Toronto mortgage delinquencies climbed in Q1 2024, and now sit at the highest rate in 8 years. Except back then the rate was falling as the market improved, and it’s heading in the wrong direction […]
One country’s discreet bailout is another country’s financial crisis, and that’s why Basel III was rolled out. The series of banking supervision measures are designed to improve banking resilience, with the latest measure designed to set minimum capital using a standard approach to risk. Canada was set to begin adopting the rules this year, but […]
Priced out of housing and now facing an eroding labor market, Canada’s young adults can’t catch a break. A new report from National Bank of Canada (NBF) warns that unemployment is on the rise across the country, but it’s surging for young adults (15 to 24 years old). The demographic is seeing unemployment rise much […]
Canada’s banks have dominated Greater Toronto’s investor mortgage market. CIBC data shows the Big Five captured 75% of investor mortgages on condos completed in Toronto in 2023. There’s just one problem-most of those mortgages are cash flow negative—the rent fails to match the payment, property taxes, and maintenance fees on the unit. The Big Five […]
Finally, some good Canadian real estate news—though it’s unlikely to be a lasting trend. New data from the Canadian Housing Statistics Program (CHSP) at Statistics Canada (Stat Can) shows more new condo apartments were owned by end-users in 2022. As interest rates climbed, prices stalled and investors no longer saw the same return potential. Owner-occupants […]
The Greater Toronto condo market has been dominated by investors for years. That’s changing really fast, according to a new analysis from CIBC Economics. Over 4 in 5 investors with a condo apartment rental completed in 2024 are losing money, collecting less rent than they’re paying out. It’s a problem that’s long existed, but may […]
Canadian real estate is facing some of the worst market conditions in decades. That was the take in CIBC’s latest research paper, which warns investment has disappeared from the market. The problem is amplified in the Greater Toronto condo market, where investors represent over two-thirds of buyers. Complicating the issue further is a weak condo […]
Canada’s central bank sees real estate becoming an even stronger part of the economy. Bank of Canada (BoC) announced a cut to its key interest rate this morning, as widely expected by markets. The central bank justified the decision by noting the progress made on inflation, as well as excess supplies and labor market slack. […]
