Canadian real estate prices are doing the unthinkable — they’ve stopped going up. After making a sudden drop last month, everyone is now wondering how much prices can fall. We’re hooking it up by assembling the downside scenario forecasts from the Big Six banks. Here’s the worst Canada’s biggest lenders see happening to home prices. […]
All flash and no (illicit) cash. That was the key takeaway from the Cullen Commission‘s final report looking at BC’s money laundering problem. Despite Canada talking a big game on anti-money laundering, its policies are ineffective. The Commission condemned federal anti-money laundering resources, and found Canada ignored the province’s calls for help. Austin Cullen, who […]
First-time home buyers are out and investors are in. That’s the takeaway from Bank of Canada (BoC) data showing the share of real estate investors in the market. Before 2020, investor demand for real estate was beginning to slow down. When rates were cut in 2020, it sparked a new wave of investor demand that […]
Canadian real estate went from the narrative prices will always rise, to “look out below” in a matter of weeks. It’s not surprising to see a fickle public change their mind that fast, but it’s odd to see the Bank of Canada (BoC) do it. In the House Price Exuberance Indicator (HPEI) for Q1 2022, […]
Canada’s improvements in poverty proved to be more transitory than inflation. New survey data from Food Banks Canada (FBC) shows over a fifth of households have recently gone hungry. With inflation running higher than incomes, many households can’t easily absorb rising costs. FBC found more food bank users are citing high inflation and rising shelter […]
No need to worry about your local home builder’s profit margin — they’re actually rising. CoConstruct, who provides construction project management software to over 100,000 clients, took a dive into builder margins. Analyzing client data, they found home builder profit margins climbed in Canada and the US. Despite rising material costs, buyers have been willing […]
Canada’s largest bank is bullish on the economy but not on home prices. RBC regulatory filings reveal they see home prices making a modest decline by next year. That’s if the economy encounters no unexpected hiccups. However, the bank warns they’ve placed more weight to the downside as the outlook darkens. In the downside scenario, […]
Canadian employment is the highest in 40 years but borrowers are showing signs of stress. Statistics Canada (Stat Can) data shows non-bank lenders saw an uptick in early mortgage delinquencies for Q4 2021. However, they were able to maintain a lower default rate than commercial banks. Part of this is due to the thousands of […]
Canada is changing a first-time home buyer program to limit its exposure to losses. The Canada Mortgage and Housing Corporation (CMHC) made unannounced changes to the First-Time Home Buyer Initiative (FTHBI). The program, which sees the government take a stake in a successful applicant’s home purchase, is now limiting its downside exposure. Only a few […]
Canada’s central bank reiterated its commitment to lower elevated inflation. The Bank of Canada (BoC) hiked the overnight rate and is going ahead with quantitative tightening (QT). It wasn’t much of a surprise, as it was widely expected by the market. What is surprising is the BoC raised its inflation forecast once again. This may […]
