Canada’s largest bank doesn’t see much happening in real estate over the next year. RBC risk models show the bank expects almost no price growth over the next 12 months, and modest growth at best. At worst, the bank sees a 30% drop in home prices and 18 months of deteriorating conditions. Base and Alternative […]
Most of Europe’s real estate is overvalued, but London pushes a new extreme, says a global ratings giant. S&P Global Ratings released their annual valuation of European real estate this week. The report shows most of the continent’s housing markets are looking a little pricey. They primarily focused on the national level, but one city […]
Central banks went from the transitory narrative to scrambling to prevent another Great Inflation era, faster than it takes to print $100 billion in Fed Treasuries. In a speech today, US Federal Reserve Chairman Jerome Powell pledged to take extreme measures to curb inflation if needed. The central banker warned this includes the possibility of […]
Canadian real estate prices are pushing the limits of affordability. Not just for Canada, but any advanced economy. Canada came in second on the OECD house price to income ratio index. The index, measuring an affordability fundamental, shows the country’s housing is severely overvalued. It also reveals Canada has the second fastest growing gap between […]
Canadian real estate prices might be in for a bit of a dip if one of the world’s leading forecasters is right. Oxford Economics’ latest forecast shows home prices falling 24% by mid-2024. Higher interest rates and anti-speculation policies are forecast to begin the price declines this fall. If these measures fail to correct prices […]
One of the biggest red flags for Canada’s real estate bubble is that banks have become prominent critics. BMO chief economist Douglas Porter reminded clients this isn’t a supply issue. The bank warned last year that price growth would accelerate without demand measures. Instead of taking that advice, policymakers doubled down on the supply narrative. […]
Oh. Snap. Canada’s central bank just threw monetary policy shade at the Government of Canada. The Bank of Canada (BoC) just released a new study called The Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal Influence. In it, they examine how a central bank should react when pressured by the government. They argue […]
Canadian real estate has a new risk factor catching the attention of regulators — CLPs. Combined Mortgage-HELOC Loan Plans (CLPs), better known as readvanceable mortgages, are fueling higher home prices. That was the take from OSFI, the country’s bank regulator. CLPs are rarely mentioned by regulators, but they’ve come up in several speeches since last […]
Canada’s central bank head piqued the interest of economists, and not because of his dazzling personality. Speaking to lawmakers, the Bank of Canada (BoC) Governor Tiff Macklem explained quantitative ease (QE) has no impact on housing. He further explained demand and the cost of housing determines mortgage demand. The statement was odd, not because he […]
Canada released the most Canadian look at COVID-19 deaths — by including real estate. Statistics Canada (Stat Can) studied age-adjusted COVID-19 mortality rates by housing type. The national stats agency found elevated mortality rates amongst those that live in high rise buildings. This was especially true for low income households, with one key exception. High […]
