Canada’s largest bank sees the country’s real estate bubble popping like no other. Last week we explained RBC is getting ready to revise its forecast lower, and they made it official today. The bank explained to investors the correction will be larger than previously expected. They’re now forecasting the largest downturn in history for both […]
When the pandemic hit Canadians bought as much toilet paper and real estate they could find. We took a dive through data provided by the Canadian Housing Statistics Program (CHSP) on homeownership in 2020. A massive share of Canadian homeowners aren’t stopping at 1 home, but provinces have seen up to 1 in 5 owners […]
The Canadian real estate bubble is kind of like a plane. People on it know it’s going fast but being inside of it means you don’t really appreciate the speed. On the outside though, the bubble looks like it just broke the sound barrier, especially in contrast to its G7 peers. US Federal Reserve data […]
Canada’s oldest bank is doubling down on its claim the housing supply shortage is a myth. BMO Capital Markets wrote to clients on Thursday morning with another data point — completions compared to household formations. The bank’s analysis argues housing completions have outpaced household formations for two decades. However, easy credit and wave after wave […]
US real estate isn’t exactly slow, but it’s a big change from last year’s market. National Association of Realtors (NAR) existing-home data shows sales fell again in June. It was the fifth consecutive month to see a drop, while inventory continued to rise. The market is still tight, but showing its first sign of weakness […]
Canada’s inflation data came in lower than expected, but still advanced to a new high. The June Consumer Price Index (CPI) from Statistics Canada (Stat Can) showed the highest annual growth since 1983. It was less than the market expected but still accelerating and way above target. Experts see the elevated inflation requiring a contraction […]
Canadian real estate suddenly had a shortage of supply after record low rates. Not in major boomtowns, but in small cities and rural municipalities. Canada had the biggest boom, but this was seen in almost every advanced economy. Right after rates were slashed to stimulate demand, everywhere had a sudden shortage. BMO Capital Market economists […]
Canadian real estate has long been a safe place for global investors to park cash. Low scrutiny, few barriers, and little to no data collection on ownership, made it ideal. Statistics Canada (Stat Can) non-resident owner data from the Canadian Housing Statistics Program (CHSP) shows just how popular it was in 2020. The program, mostly […]
Greater Toronto’s new housing market is slowing just as fast as existing-homes. Altus Group data shows new home sales fell sharply in May, while inventory levels have improved. New home inventory is still low compared to historical levels, but the drop in sales has been so sharp that it’s starting to erode price gains. Just […]
Construction of new housing supply suffered a mild setback, but remains historically elevated. Canada Mortgage and Housing Corporation (CMHC) data shows new home starts fell in June. The drop was only slight, with the number of units still much higher than anything seen in the 2000s or 2010s. Big cities like Toronto and Vancouver even […]
