Canada’s epic real estate run is forecast to end as surging mortgage rates pinch demand. Moody’s, one of the big three credit rating agencies, has forecast a decade high for mortgage rates. The firm’s risk models now show home prices stalling if the economy is able to maintain this steam. There’s only a minimal chance […]
Canada’s central bank said they would “forcefully” control inflation last month. In the first rate announcement since that statement, the Bank of Canada (BoC) took the first steps of following through. To curb “excess demand,” the central bank raised rates aggressively and even set a date to begin reversing its QE program. Canada’s Overnight Rate […]
One of Canada’s most prominent economists really wants you to stop blaming high home prices on supply. BMO chief economist Douglas Porter explained Canada is promoting an incorrect supply narrative. In a piece literally called, Could We PLEASE Stop With This Supply Myth?, he breaks down a chart in Budget 2022. The Federal Government felt […]
Canada is a nation of landlords, and quickly turning it to a country of haves and have nots. A new data drop from Statistics Canada (Stat Can) shows the number of homeowners with at least one other home in 2020. Provinces reported as high as 1 in 5 homeowners held multiple properties, and owned over […]
Canada’s latest budget sets ambitious housing supply targets, but it’s mostly hot air. BMO broke down the Federal government’s new supply measures for Capital Markets clients this morning. If possible, the plan in Budget 2022 to double home construction shows they still don’t understand inflation. Or Millennials, come to think of it. Though it doesn’t […]
Canadian mortgage rates are expected to surge higher and grind demand to a halt over the next few years. That’s the take Moody’s Analytics shared with credit analysts and institutions last week. The credit rating giant sees soaring bond yields pushing mortgage rates to a decade high. Low rates over the past two years also […]
Canada’s employment market is now beyond hot, and has begun overheating. Statistics Canada (Stat Can) reported March reached a new record low for the unemployment rate. Labor markets running this tight are seen as overheated and contribute to even higher inflation. Experts see this reinforcing the need for higher interest rates — even endorsing a […]
Canadian households aren’t the only ones feeling credit tightening. Businesses are also reporting easy money is coming to an end — and fast. That was the consensus in the Bank of Canada (BoC) Business Outlook Survey (BOS) for Q1 2022. Businesses generally reported a tightening of conditions over the past 3 months. This is often […]
Canada’s era of cheap debt and low inflation is now firmly behind us — and it disappeared really fast. The Government of Canada (GoC) 5 Year Bond closed at the highest level in a decade today. Five Year yields are important to real estate, influencing one of the key mortgage rates. As a result, Canadians […]
Canadian real estate investors should pay close attention to a new rule in the budget. The Government of Canada (GoC) 2022 budget proposes to apply a sales tax to assignments for new homes. Hitting assignments with a sales tax will make reseller units much less attractive. If implemented, this can drastically change investor demand for […]
