Canada has never seen anything like the current residential real estate market. Sure, affordability is often a problem at the peak of a real estate cycle. However, the gap between home prices and disposable incomes has never been this wide. Home prices have persistently outpaced wages for this generation, and it’s not slowing. The gap […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada’s Oldest Bank Begs, “Could we PLEASE Stop With This Supply Myth?” One of Canada’s most prominent economists is getting tired of the false supply narrative. BMO chief economist Douglas Porter explained the supply narrative is vastly overstated. In an analysis […]
Soaring Canadian real estate prices have made it “normal” to borrow supersized mortgages. Mortgage distribution data showing the size at origination has shifted to the right. Low rates and higher home prices have facilitated households borrowing a lot more to buy a home. Just five years ago, the largest segment of borrowers had been borrowing […]
Good thing Canadian mortgage borrowers have been stress tested, because it’s game time. Fixed rate mortgages have already climbed aggressively with market expectations. However, variable rate mortgage interest costs have lagged until recently. Now they’re expected to make up for lost time, doubling over six months. With rising inflation expectations, it might climb even further. […]
Canada’s central bank is aggressively hiking rates but also expecting more inflation. The Bank of Canada (BoC) rate decision got all of the attention yesterday, but that was expected. It’s the BoC forecast that was a surprise, as they hiked their inflation expectations. The consumer price index (CPI) annual growth numbers received an uptick for […]
Canada’s epic real estate run is forecast to end as surging mortgage rates pinch demand. Moody’s, one of the big three credit rating agencies, has forecast a decade high for mortgage rates. The firm’s risk models now show home prices stalling if the economy is able to maintain this steam. There’s only a minimal chance […]
Canada’s central bank said they would “forcefully” control inflation last month. In the first rate announcement since that statement, the Bank of Canada (BoC) took the first steps of following through. To curb “excess demand,” the central bank raised rates aggressively and even set a date to begin reversing its QE program. Canada’s Overnight Rate […]
One of Canada’s most prominent economists really wants you to stop blaming high home prices on supply. BMO chief economist Douglas Porter explained Canada is promoting an incorrect supply narrative. In a piece literally called, Could We PLEASE Stop With This Supply Myth?, he breaks down a chart in Budget 2022. The Federal Government felt […]
Canada is a nation of landlords, and quickly turning it to a country of haves and have nots. A new data drop from Statistics Canada (Stat Can) shows the number of homeowners with at least one other home in 2020. Provinces reported as high as 1 in 5 homeowners held multiple properties, and owned over […]
Canada’s latest budget sets ambitious housing supply targets, but it’s mostly hot air. BMO broke down the Federal government’s new supply measures for Capital Markets clients this morning. If possible, the plan in Budget 2022 to double home construction shows they still don’t understand inflation. Or Millennials, come to think of it. Though it doesn’t […]
