After decades of telling the public that low rates make housing affordable, Canada’s central bank is declaring, whoops! Bank of Canada (BoC) research shows decades of low rates did not make housing affordable. In fact, it had the opposite effect — increasing the size of mortgage debt. Real estate markets absorbed the increased debt capacity […]
Canadians are going all-in on housing, as it’s increasingly seen as a low-risk asset. As debt grows faster than the economy, the ratio of mortgage debt to gross domestic product (GDP) has been soaring. Canada has created so much moral hazard, home prices no longer fall during a recession. Instead, households are leveraging up and […]
Most immigrants in Canada find themselves in just two major regions, and those regions also happen to pay them the worst. Statistics Canada (Stat Can) data shows the median annual income for immigrants in 2019 was much lower in major hubs. Immigrants that arrived 10 years ago are paid much lower in places like Southern […]
The Canadian economy is recovering slower than its peers despite elevated inflation. BMO chief economist Douglas Porter indexed the GDP for Canada, the US, and Australia in Q3 2021. All three economies began as a v-shaped recovery, but Canada is the only one not to hit pre-pandemic levels. Despite signs of a strong economy, like […]
The Canadian economy is quickly going from a recovery to overstimulated. That was the take from the National Bank of Canada (NBC) today, anyway. In an unusual move, the Big Six bank wrote an open letter demanding a halt to stimulus. They also argue that the central bank needs to hike rates in the next […]
Greater Toronto real estate prices are moving at one of the fastest rates in history. Toronto Regional Real Estate Board (TRREB) data shows home prices hit a new record in November. The result was home prices soared by tens of thousands, printing a fifth of annual gains in just 30 days. Excess demand, driven by […]
Greater Vancouver real estate took a while to notice the credit injection, but it’s making up the lost time. Real Estate Board of Greater Vancouver (REBGV) data shows home prices hit a record in November. The price of a typical home is now rising at the fastest annual rate since 2018. A Typical Home In […]
It doesn’t matter if your city just saw massive price gains; they might see another year of excessive growth, interest rates be damned. That’s essentially the take from Re/max, one of Canada’s largest estate brokerages. The firm is forecasting massive growth across the country next year, with markets rising up to 20% over the next […]
Canadian real estate has outgrown productive investment for a few years, but it’s never been this bad. National Bank of Canada (NBC) found that Canadians now invest more in homes than businesses. It’s the first time since the early 1960s that housing investment has grown larger than private investment. The “Big Six Bank” says this […]
Canadian cities rank as some of the largest real estate bubbles globally, but Canada doesn’t see it that way. The Bank of Canada (BoC) House Price Exuberance Index Indicator (HPEI) ranks just two cities as exuberant in Q3 2021. Neither of those cities is Toronto or Vancouver, despite both ranking amongst the biggest real estate […]
