Canadian real estate prices are the most overvalued in decades, but not all markets are equal. Earlier this week, we shared BMO data showing Canadian homes were 38% overvalued. Today we’re sharing a regional breakdown, showing where the widest trend deviations are. Most regions are overvalued, but nowhere is even close to Greater Toronto. Canadian […]
Canadian real estate is so bubbly a large bank sees prices soaring in a downturn. Scotiabank (BNS) reported earnings today, filing the bank’s macroeconomic forecasts. These forecast scenarios help to determine outlook, and include a base case, optimistic case, and two pessimistic ones. Even in the bank’s worst case scenario, they forecast home prices will […]
Canada’s economy is booming, and there’s a good chance you’re not feeling any of the benefits. A new study by Statistics Canada (Stat Can) on gross domestic product (GDP) per capita might shed some light on why. The agency found GDP recovered from the recession but not when measured on a per capita basis. Lingering […]
Higher mortgage rates are rapidly cooling American real estate prices. US Census Bureau data shows a very sharp moderation in new housing activity in April. Sales fell to the lowest level since the public health crisis, but inventory is the standout. The market hasn’t seen this much new housing inventory since 2008, falling into a […]
Canada’s real estate bubble is finally beginning to unwind and everyone wants to know how low it goes. BMO Capital Markets tackled the subject for clients on the weekend, providing models and historical context. Rising interest rates are certain to cause a correction, as it purges excess leverage. Prices need to drop significantly just to […]
You did it! Your household earns the median income for Canada, and you convinced your boss to work from home. Now you just need to find a home you can afford, in the second largest country in the world. Easier said than done. Don’t worry, we got you. We hope you like small and remote […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Prices 38% Overvalued, Largest Trend Deviation In 40 Years: BMO Canadian real estate hasn’t seen anything quite like the bubble it’s facing right now. Since 2020, the price of a typical home across Canada has increased a whopping […]
Canadian real estate is quickly changing as inflation drives bond yields much higher. First National, one of Canada’s largest non-bank mortgage lenders, warned rates are surging. Neil Silverberg, a senior analyst with the lender, wrote to clients explaining how fast yields have increased and how this will impact ownership. More Canadians are expected to stay […]
Canadians are tapping that windfall of home equity and are ready to pay a lot of interest to do so. Filings with the bank regulator show home equity line of credit (HELOC) debt increased in March. It’s now growing at the fastest rate since 2013, after contracting over the past few years. The debt is […]
Canadian real estate faces several hurdles and those hurdles are about to rise. Bank of Canada (BoC) data shows outstanding mortgage credit climbed substantially in March. It was only the first month of rate hikes, but we’re already beginning to see activity relax. Growth is now off multi-year highs with rising rates and falling sales […]
