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 […]
Canadian real estate is probably fine, but the bank regulator just wants your lender to be extra safe. Earlier today, the Office of the Superintendent of Financial Institutions (OSFI) sent an advisory on real estate secured lending (RESL). OSFI, who oversees federally-regulated financial institutions (FRFIs), clarified expectations for risky mortgages. Lenders have been asked to […]
The global economy may be in for a bumpy ride, warns the central bank for central banks. The Bank of International Settlements (BIS) broke down the environmental variables typical of those preceding a hard landing. Most advanced economies fit this bill and are advised to start tackling inflation immediately. Those in the worst circumstances are […]
American agreements to buy existing-home sales improved better-than-expected, but still trended lower. The National Association of Realtors (NAR) Pending Home Sales Index (PHSI) made a small improvement in May. However, pending home sales, a leading indicator of future home sales, is way below last year. NAR expects this trend to continue, forecasting existing-home sales will […]
Canada will need to pump the breaks to stabilize its overheated economy. That was the message from RBC Economics’ latest research on inflation. Sky-high inflation has forced central banks to adopt an aggressive rate hike schedule. Cooling inflation (and the economy) with rapid rate normalization is now the plan. The slowdown is expected to begin […]
