Canada turned to millions of temporary residents to solve its coming demographic shift, but will it work? RBC Economics has released a new analysis discussing the country’s recent surge in temporary residents. These temporary residents are providing essential labor, helping to resolve the sudden shortages after pandemic stimulus. However, the programs need better targeting, as […]
Canadian households are about to be hit with a demand limiting factor—income. Household disposable income growth is failing to keep up with inflation according to StatCan data. Even worse, once adjusted for inflation and the country’s booming population growth, it paints a dreary picture as debt problems surface. Household Disposable Income Household disposable income is […]
Canada’s economy has been a raging inferno of excess demand, and policymakers are throwing gas on it. That was the take in a new BMO Capital Markets memo warning that Federal spending is outpacing the country’s economic output, contributing to excess demand and higher inflation. As a result, the bank warns that interest rates have […]
Higher interest rates did something even a pandemic couldn’t—it slowed Canadian mortgage borrowing. Bank of Canada (BoC) data shows that mortgage credit continues to decelerate in May. When inflation is factored in, mortgage credit growth falls to a level rarely seen in Canada. Canadians Owe Over $2.1 Trillion In Mortgage Debt Canadian mortgage debt is […]
Canadian households, the most indebted in the G7, are finally showing borrower fatigue. Statistics Canada (Stat Can) data reveals household debt reached a new record in May 2023. Now larger than the country’s output, the mountain of debt is changing its growth pattern. Households borrowed mortgage debt at the slowest rate since the Great Recession, […]
Canada’s real estate developers are pushing forward despite less-than-ideal conditions. CMHC data reveals June housing starts made the biggest jump in a decade. Even with the jump, the general trend has been fewer housing starts, despite the booming population growth. At least one of Canada’s largest banks has stated the country’s goal to double output […]
Canada’s latest inflation numbers are coming in even lower than expected. Statistics Canada (Stat Can) data released this morning shows that annual growth for the Consumer Price Index (CPI) slowed in June. Higher rates are starting to throttle demand, but not nearly enough to slow the Bank of Canada (BoC) preferred measure of inflation. Canadian […]
Canada’s real estate industry is lowering expectations for the market going forward. The Canadian Real Estate Association (CREA) revised its home sales forecast lower for the remainder of the year. They also see 2024 being slower than previously anticipated, as demand slows without central bank stimulus. Canada’s Real Estate Industry Revises 2023 Sales Lower Expectations […]
Canadian real estate’s brief bounce is beginning to fade. Canadian Real Estate Association (CREA) data shows existing home sales climbed in June, with prices also climbing. However, price growth is notably decelerating at a rapid rate, with new inventory now outpacing sales. Canadian Real Estate Prices Are Showing Signs Of Fatigue Canadian real estate prices […]
Canada’s central bank was surprised by how strong the excess demand has been. Consequently, the Bank of Canada (BoC) sees elevated inflation sticking around for a little longer. In its latest Monetary Policy Report (MPR), the central bank warns that excess demand has been resilient, helping to create more uncertainty. Now they don’t see the […]
