Canadian real estate markets aren’t yet in the clear, despite the surge in buying activity. RBC Capital Markets, in a note to institutional clients, is forecasting mortgage defaults won’t rise until the second half of 2021. Analysts authoring the report said a combination of payment deferrals and government support, “kicked the can down the road.” […]
First-time homebuyers were warned at the beginning of the pandemic, and a lot didn’t listen. Now some are seeing exactly what the Canada Mortgage and Housing Corporation (CMHC) warned. Canadian Real Estate Association (CREA) condo apartment price data shows a few markets have seen buyers lose a chunk of their down payment. There are some […]
One of the world’s largest real estate brokerages sees near-term risk for Toronto condos. RE/MAX weighed in on the recent market, and observed what a lot of people are seeing – a booming detached market, and a lot of condo apartment supply. The brokerage cites 3 drivers for this trend – urban flight, lower interest […]
Canada’s largest bank is prepared for the wave of mortgage defaults coming. Phew! Wait… what defaults? RBC Capital Markets sent a research note to clients last week. In it, the analysts mention up to a fifth of deferred mortgages are at risk of default. It’s great the bank is well prepared for this event, but […]
On the day Canadian home sales and prices hit record highs, the central bank announces an end to the program partially responsible for the surge. The Bank of Canada (BoC) flooded the market with cheap mortgage credit in March. Yesterday, as market data showed a fever pitch had been reached during the “worst” recession in […]
Canadians are beginning to resume paying their mortgages, after many requested deferrals. Canada Mortgage and Housing Corporation (CMHC) broke down insured mortgage payment deferrals in August. At a national level, CMHC is seeing the rate of payment deferrals similar to the general market. Broken down by city, we see the most expensive markets are overrepresented. […]
Canadian real estate prices made one of the largest leaps on news of a pandemic-driven economic shut down. US Federal Reserve Bank of Dallas data shows most G7 countries saw prices rise in real terms during Q2. Canada however, saw real home prices launch at the fastest pace of any of the advanced economies. This […]
Canadians are increasingly discussing negative interest rates. Since negative interest rate policy is unconventional, there aren’t many examples. Further, there isn’t much discussion from experts that understand the concept. Despite what I’ve heard some real estate agents tell people, it won’t lead to the market boom they assume. In fact, it typically requires a horrible […]
Canadian condo investors are facing another risk – rising insurance premiums. The event, which the industry is calling the “condo coverage crisis,” saw premiums rise at the end of last year. This trend of higher rates is expected to persist into the future, as replacement values and insurance demand continue to rise. The rising premiums […]
Toronto is one of the few real estate markets to buck the trend of fewer high rise cranes. Rider Levett Bucknall Crane Index (RLB), a global real estate advisory firm, released its Q3 Crane Index. The index shows North America saw the first decline of construction cranes in years. Toronto was a notable exception. The […]
