High inflation is probably transitory, and central banks should tell people that… but totally be ready in case they aren’t. That’s the take from the IMF today, who released its latest global outlook. The agency said high inflation should ease, and central banks should communicate that message. However, it may not be transitory, and monetary […]
Canada’s central bank is warning about a rapidly deteriorating mortgage environment. Yesterday we unpacked Bank of Canada (BoC) data on highly indebted borrowers representing a larger share of mortgage originations. Today we’re looking at an issue that builds on that — these borrowers have little equity. Highly indebted households with little equity are the perfect […]
Toronto’s new home market is finally starting to cool, but it’s got a long way to go. Altus Group and BILD GTA data show new home sales were firm in June. Weakness in the city, especially for condo apartments, weighed on price growth though. Annual price growth is starting to slow, with condos even seeing […]
Canada used to be known for its conservative mortgage lending, but that’s no longer the case. The Bank of Canada (BoC) warned mortgage quality has “deteriorated” in 2020. The central bank found highly indebted households, those with a loan-to-income ratio higher than 450%, now represent a record share of new mortgage debt. Highly indebted households […]
Canadians went on a real estate shopping spree during the pandemic, and it’s been great for banks. Canadian Bankers Association (CBA) data shows mortgage accounts reached a record in April. Mortgages aren’t just getting larger, a lot more people are taking them out. The annual rate of growth for the number of accounts is now […]
Canadians have been begging for housing costs to have a greater influence on inflation. They’re going to finally get what they’ve been asking for… but it’s going to work against them. The consumer price index (CPI) basket weights got an update from Statistics Canada (Stat Can). One of the biggest changes to the index is […]
Canadian real estate markets are losing some steam after its record year. Canadian Real Estate Association (CREA) data shows just over half of markets saw price growth slow in June. Looking more closely at recent numbers reveals this trend is about to become more common. All but a few markets are currently on track for […]
You’re not alone if you aren’t buying the “inflation is transitory” narrative. BMO Capital Market senior economist Robert Kavcic unpacked price change sentiment data. Small business owners see the cost of goods rising a lot over the next year. In fact, prices are expected to rise the most in at least a decade, by a […]
The whole world might be in a property bubble, but Canada is the second riskiest. That’s the take from Oxford Economics in their latest housing report this morning. Adam Slater, the firm’s lead economist, broke down fundamentals for global markets. He found double-digit overvaluations are widely seen these days. The firm believes a correction is […]
Global real estate prices are growing at the fastest rate ever, but it’s nothing like in Canada. US Federal Reserve data shows annual home price growth for advanced economies hit a record in the first quarter of 2021. So did Canada. The difference is Canada’s record growth is more than 3x as large as other […]
