This Week’s Top Stories: Canada’s Hard Landing, and The BoC Calls Real Estate Unsustainable
Top stories in Canadian real estate include a hard landing for the economy, and real estate’s unsustainable growth according to the BoC.
Top stories in Canadian real estate include a hard landing for the economy, and real estate’s unsustainable growth according to the BoC.
BMO is hiking its interest rate forecast for Canada and the US by 25 basis points, on news of strong data and stubborn inflation.
Canadian employment fell once again in July, falling for a third consecutive month. The unemployment rate also jumped, but remains low.
Canadian real estate was unsustainable and inflation is still rising, warned the Bank of Canada in a statement following rate hikes.
Oxford Economics now sees a moderate recession after the Bank of Canada now needs more aggressive rate hikes due to persistent inflation.
Canada’s M1+, a narrow measure of its money supply, is seeing growth fall at a rate that almost always precedes a recession.
This week’s top stories include two “Big Six” banks sharing a worsening outlook for Canadian real estate and Toronto prices plummeting.
Greater Toronto real estate prices continued to fall in August, with the cost of a typical home now back to October 2021-levels.
Canada’s economy was a little less dependent on real estate in the last quarter, but still nearly 30% more dependent than the US in 2006.
Canada’s second-largest bank is the latest to forecast declining real estate prices, but the good news is they don’t see a deep recession.