Canadian households devote an astronomical amount of income just to carry their debt payments. Data from the Bank of International Settlements (BIS) shows Canadian households have a very high debt service ratio (DSR). The ratio dropped in Q4 2020 slightly, but it’s still much higher than any other G7 country. Not even the US housing […]
Canada’s red hot real estate market continued to cool, according to new numbers from the industry. Canadian Real Estate Association (CREA) data shows the seasonally adjusted sales to new listings ratio (SNLR) fell in August. The relative measure of demand is one of the core indicators used to determine how tight the market is. Since […]
Canadian housing supply plays a role in home price growth, but doesn’t explain all of it. The Bank of Canada (BoC) published a paper on Canadian Housing Supply Elasticities. In it the researchers explain supply plays a big role, but not to the extent we’ve seen. Over the short-term, it fails to explain the extreme […]
Canadians must be hoping for a recession every year, since they’ve never made more money. A National Bank of Canada (NBC) analysis shows household wealth surged in Q2 2021. Their wealth actually surged so fast, the ratio of debt hasn’t looked smaller in almost 2 decades. The bank expects this to fund a significant spending […]
Canadian real estate has long been frothy, but how does it look compared to other countries? According to the US Federal Reserve (the Fed) exuberance index in Q1 2021, pretty bad. Only two G7 countries are considered exuberant markets (a.k.a. bubbles) — Canada and Germany. Those two countries are also the longest-running bubbles of any […]
Either the Canadian real estate bubble is now a bubble on a bubble, or old enough it should be in school. The US Federal Reserve (the Fed) released its quarterly exuberance index for Q1 2021. The index, used to determine country-level housing bubbles, shows Canada is well into one. The unusual circumstances make it unclear […]
Canada’s largest bank might be your landlord in the not-so-distant future… if they aren’t already, at this point. The RBC Global Asset Management (GAM) Canadian Core Real Estate Fund entered into an agreement to buy half of a real estate portfolio from Quadreal this week. The deal comes as more investors are crowded out of […]
One of Canada’s top issues this election is housing, and as usual, we’ve been getting a lot of questions by email. Instead of answering each email individually, we’re going to cover what feels like our regular election platform breakdowns. In separate pieces, we’ll drop an unbiased look at the policies promised, and the intended (or […]
Greater Toronto and Vancouver real estate price growth further decelerated last month. Both boards reported the rate of annual growth fell in August. Surprisingly low inventory, typical during election periods, helped to firm prices though. It may even be enough to return the trend to growth this month. At least for the near-term. Greater Toronto […]
Canadian real estate agents and brokerages are accused of working against their clients. Not by some rando either, but the claims came from the Real Estate Council of Ontario (RECO). The provincial regulator wrote the industry to explain they found clients were directed based on commissions. This tactic means some buyers may have bought real […]
