Canadian inflation is the highest in decades, and it’s even higher for those without a mortgage. Statistics Canada (Stat Can) data shows growth of the Consumer Price Index (CPI) hit a 31-year high in March. But when mortgage interest costs are excluded, inflation is even higher — the highest growth in the agency’s data set. […]
Canadian real estate prices won’t correct due to population growth, right? Well, BMO Capital Markets shared a different take with institutions this morning. The bank explains there is no historical evidence to support this narrative. During the last significant home price crash, Canada saw its population grow at a faster rate. They warn interest rates […]
Canada’s real estate industry is sounding the alarms on higher rates, warning it’ll “punish” buyers. However, these folks are blissfully unaware that mortgage costs are near record lows. In real terms, households have never had access to mortgages this cheap, which is part of the problem. Central banks distorted credit markets to the point mortgages […]
Australia’s central bank raised interest rates for the first time in a decade to try and calm inflation. The Reserve Bank of Australia (RBA) hiked rates this morning, the first hike since 2010. The cash rate is now 0.35%, an increase of 25 basis points (bps). It’s not particularly high, but just a small increase […]
North America’s busiest construction hole is seeing work grind to a halt this week. LiUNA Union Local 183‘s residential construction members voted to strike last night. The local represents a significant share of Greater Toronto’s residential tradespeople. As cost of living talks broke down, the union’s members entered a legal strike position. North America’s Largest […]
From transitory to forcefully, Canada’s central bank now believes it must act aggressively to tackle high inflation. Bank of Canada (BoC) Governor Tiff Macklem acknowledged some mistakes interpreting inflation. Speaking to lawmakers, he explained they are working to correct the issue. Canada’s economy has recovered and moved into excess demand, allowing them to pursue higher […]
Canadians know the real estate market is growing fast but how unusually fast it’s moving may not be clear. Data from US Federal Reserve researchers might help with that. The numbers show Canadian home prices increased at a rate at least 50% faster than any other G7 country in Q4 2021. The issue isn’t just […]
Canadian real estate developers are being squeezed by inflation, and it’s turning ugly. The Hazleton Development Corporation obtained Companies’ Creditor Arrangement Act (CCAA) protection on April 20, 2022. The developer cited rising costs as one of the primary issues putting a 265-home project at completion risk. In this particular case, costs rose less than typical […]
Canada’s bank regulator is getting its ducks in a row after a routine audit to assess financial system risk. The Office of the Superintendent of Financial Institutions (OSFI) published its first Annual Risk Outlook last week. The report covers systemic risks to the system, including a home price crash. Amongst the issues uncovered was mortgage […]
Canadian real estate is significantly overvalued, according to a giant institutional intelligence firm. Moody’s Analytics’ released their Q4 2021 assessment of home price valuation. They found home prices have continued to rise above trend, indicating overvaluation. Cities are now up to 108% overvalued, a problem particularly bad in Southern Ontario. Canadian Real Estate Is 23% […]
