More Canadians are looking to buy condos, but they’re being warned not all are equal. The Canadian Institute of Actuaries (CIA) released a study on condo reserves this week. In the 140-page report, the organization warns low reserves often create misleading overvaluations. Over the long run those values may not benefit the current owners though. […]
Canadian real estate prices are moving at a record-shattering speed these days. Canadian Real Estate Association (CREA) data shows home prices hit a new record in January. Though they didn’t just hit a record for price, but the growth rate as well. Despite warnings of higher rates and a regulator calling the market a bubble […]
Canadians are fleeing expensive cities and heading to distant small towns. RBC economist Carrie Freestone looked at population growth in their latest research note. The bank found “resort towns” are seeing the fastest growth in the country. In general, distant suburbs of major cities are growing the fastest. This can create a long-term boom for […]
Central banks may have held rates too low for too long, making it difficult to normalize. The US is now discussing the flattening of the “yield curve,” often a sign of an economic slowdown. Canada is ignoring a similar discussion, despite flattening even faster than the US. Flattening quickly turns into yield curve inversion, considered […]
Canadian homebuyers are scrambling for cheap mortgage debt, often with variable rates. The latest Desjardins’ research note shows they should expect to pay a lot more in two years. As the Bank of Canada (BoC) hikes the overnight rate, those with variable mortgages will see costs rise. Desjardins’ calculations see those costs more than doubling […]
Canada’s national statistics agency revealed a surprise in the latest Census drop. BMO Capital Markets found Canada’s housing stock has grown faster than its population. Robert Kavcic, a senior economist at BMO, pulled historic data and found this to be the case for two decades. The bank acknowledges long-term supply issues, but believes how much […]
Canada and the US both reported the highest inflation in decades, but they have different takes on tackling it. In recent days, the Bank of Canada (BoC) softened its stance on rate hikes, blaming transitory issues. Meanwhile, the US Federal Reserve has become more aggressive, calling an inflationary shock. Both countries are expected to raise […]
A prominent skeptic of Ontario’s ambitious housing plan has emerged — Canada’s oldest bank. The province’s Housing Affordability Task Force released a plan to build 1.5 million homes over 10 years. BMO senior economist Robert Kavcic dumped a bucket of cold water on the plan. Not only does the bank say it doesn’t make sense, […]
Millennials aren’t having children and experts believe high home prices are a big part of the issue. An NBER working paper titled House Prices and Birth Rates: The Impact of the Real Estate Market on the Decision to Have a Baby looks at the influence of home prices on births. They found higher home prices […]
Canada is shying away from its image as a petro-state, but its economy is moving in the other direction. BMO Capital Markets’ latest research note looks at Canada’s merchandise trade balance for 2021. Canada produced its first surplus since 2014, way back when oil was above $100 barrel. That’s not a coincidence, with energy prices […]
