It’s going down. I’m yelling timberrr. Bad joke, but good news for home construction costs, unless you’re a timber dealer. After more than tripling since 2020, lumber prices have crashed over 60% lower as of Tuesday. Surging lumber over the past two years helped drive construction costs tens of thousands of dollars higher. Now that […]
Canadian real estate prices got a big boost from central bank stimulus, sparking a speculative frenzy. That frenzy is coming to an end fast, with more than half of major markets off peak. A pullback is expected after rapid price increases for real estate markets. What’s unexpected is the pace of the pullback, possibly one […]
Higher interest rates might force Canadian households to do the unexpected — pay down debt. That was one of the findings in the Bank of Canada (BoC) Survey of Consumer Expectations. The Q2 2022 results show many households plan to change spending behavior if rates rise. It also revealed the average person expects inflation to […]
A global real estate correction has kicked off and Canada is expected to lead lower. That was the message from Goldman Sachs (GS) Research’s latest client note on rising rates. Excessively low rates stimulated record home sales and a multi-decade high for inflation. Now that rates are rising to cool that inflation, it’s removing home […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices Are On Track To Drop $68k By Mid-Summer Higher interest rates have knocked the exuberance out of Canadian real estate. The sales to new listings ratio (SNLR) historically has led annual price growth by 3 months. It’s so […]
Canada’s addiction to real estate-driven growth won’t be easy to break, being such a large share of the economy. Statistics Canada (Stat Can) released annual provincial data for Real Estate and Rental and Leasing (RERL). RERL is a share of gross domestic product (GDP) sourced from real estate services. Over the past two decades, RERL […]
Bubble Contagion? Bank of Canada Finds Suburban Real Estate Prices Outgrew The City Canadian real estate prices have made absurd gains over the past year, especially in big city suburbs. A new study from the Bank of Canada (BoC) looked at this phenomenon, observing the gap between city centers and the suburbs has been quickly […]
Ontario is about to experience more real estate pressures in the form of higher rents. The Government of Ontario released its annual rent guideline for 2023. This guideline covers the maximum increase most tenants can experience in the year. With inflation at a 40-year high, it’s hardly surprising to see the guideline at a decade […]
Canadian real estate has cooled even faster than bears assumed possible. The sales to new listings ratio (SNLR) indicates it’s just getting started. If historic patterns hold true, the market will see all of 2022’s gains disappear by mid-summer. Unless something changes the trend, home prices are heading in the direction of improved affordability. Sales […]
Policymakers have been telling the public that a soft landing is still possible. However, virtually no one believes it, according to BMO Capital Markets. BMO chief economist Douglas Porter recently explained that market expectations are eroding. Yields and commodity prices are cratering against a backdrop of higher inflation. This isn’t typical unless serious doubts have […]
