Canada’s real estate correction is all set to continue, following a brief interruption. High-profile macroeconomics firm Oxford Economics sees the Spring bounce as temporary. Their latest forecast shows the correction is only halfway, and will last well into next year. Higher mortgage rates and macroeconomic erosion may also prevent a rapid recovery. Canada’s Real Estate […]
Greater Toronto real estate prices are suddenly back to correcting, despite a mini-boom. Toronto Regional Real Estate Board (TRREB) data shows home prices fell in July. Rising interest rates are the first thought, but home sales are still climbing. Home buyers just aren’t able to keep up with sellers—new listings are climbing much faster than […]
Canada’s most prominent House Price Index (HPI) has received a change that could make it unreliable, warns a prominent firm. Oxford Economics is warning clients that the latest changes to the Canadian Real Estate Association (CREA) HPI makes it problematic. The latest change has led to a massive historical revision, minimizing growth over the past […]
Canada’s inflation surge is leaving almost as quickly as it appeared, but it’s not gone yet. BMO Capital Markets wrote to investors this morning, warning the Consumer Price Index (CPI) is about to get a boost from gasoline prices. A base effect that helped to lower the headline CPI growth is about to work in […]
Canada’s progress on crime is rolling back, and it may be a sign of eroding economic opportunity. Statistics Canada (Stat Can) data showed an increase in its Crime Severity Index for 2022. Both violent and non-violent crime is on the rise, with the odds of being a victim at 1 in 16. Especially of concern […]
Buckle up, Canadian mortgage rates are about to climb even further in the coming weeks. The Government of Canada (GoC) 5-year bond yield closed Thursday at a 16-year high. The yield directly influences a key mortgage rate, meaning interest costs are about to head in this direction as well. At least one Big Six bank […]
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 […]
