Canadian restaurants were already getting crushed by soaring real estate prices, and now they’re facing pandemic fallout. Data from Open Table shows the big drop off in traffic for restaurants in Canada’s largest cities. Cities like Toronto were already facing weak traffic growth. However, this was capitulated after COVID-19 cases began to rise. Montreal had […]
Canadian bank regulators are jumping into action to contain economic risk. The Office of the Superintendent of Financial Institutions (OSFI) made emergency changes last week in response to COVID-19. These changes include dropping the update to the mortgage stress test, lowering domestic stability buffers, and asking banks to halt share buybacks and dividend hikes. Mortgage […]
Cracks in the Canadian economy are appearing, and it started last year. Statistics Canada (Stat Can) data shows gross domestic product (GDP) per capita fell in Q4 2019. The decline is the second consecutive quarterly drop, and is now back to where it was two years ago. GDP Per Capita Gross domestic product (GDP) and […]
Canadian real estate sales are soaring, and prices are accelerating quickly. Obviously, it’s the perfect time for the government to loosen credit conditions. The Department of Finance (DoF) announced changes to the way insured mortgages will be stress tested. The new changes go live on April 6, 2020, and will lead to a more responsive […]
Canada is in the midst of an immigration boom, but Ontario is losing ground. Statistics Canada (Stat Can) data shows more non-permanent residents arrived in Q3 2019. A lot more, actually. The net increase of non-permanent residents was the highest of any quarter, going back to the 1970s – the last year calculated by the […]
Buyers in Canada’s largest real estate markets aren’t keen on sharing a home with the government. The First-Time Home Buyer Incentive (FTHBI) received few applications from September 2 to December 9, 2019. The poor reception is of note in urban areas, where first-time buyers need the most help. However, only a third of applicants for […]
Not a lot of real estate buyers across Canada are interested in the latest government buying scheme. Government of Canada (GoC) data shows the First-Time Home Buyer Incentive (FTHBI) received a cold reception. From the launch of the program, to the beginning of December, only two provinces represented the majority of applications. Those two provinces, […]
Canadian real estate buyers are still feeling exuberant about the market. The US Federal Reserve Bank of Dallas‘ (Dallas Fed) exuberance indicator shows expectations are still high in Q3 2019. The index measures explosive price growth, that’s detached from fundamentals. Expectations are much lower than they were in 2017, but are still above critical levels. […]
Canada’s sky high debt is meeting with higher than expected inflation, and it’s going to be a problem. Statistics Canada (Stat Can) data shows the median consumer price index (CPI-Median) rising in November. The measure of core inflation is now at the highest level in over a decade. By itself, this isn’t much of an […]
Canadian regulators are asking banks to set aside a little extra cash for a rainy day. Okay, a lot more cash for a downpour. Office of the Superintendent of Financial Institutions (OSFI) completed their bi-annual domestic stability buffer review. The regulator sees systemic risks, those that can cause instability to the financial system, remain elevated. […]
