Canadian real estate is increasingly flashing warnings after detaching from incomes. Sal Guatieri, a senior economist at BMO, found another one — home values as a percent of income. The indicator calculated by Statistics Canada (Stat Can) shows home prices climbing much faster than incomes. It almost looks like a plotting error, as homes continue […]
Most of Europe’s real estate is overvalued, but London pushes a new extreme, says a global ratings giant. S&P Global Ratings released their annual valuation of European real estate this week. The report shows most of the continent’s housing markets are looking a little pricey. They primarily focused on the national level, but one city […]
Canadian real estate prices might be soaring, but mortgage growth is hitting a wall. Bank of Canada (BoC) data shows mortgage credit hit a new record in January 2022. Annual growth is still close to the highest level since 2008, but several signs show we’re past the peak. With rising interest rates shrinking mortgage budgets, […]
Canadians aren’t keen on the prospects of buying a home, according to a mortgage industry report. Mortgage Pros Canada (MPC), a trade association representing mortgage brokers, released its Semi-Annual State of The Mortgage Market. One of the key data points is a consumer survey used to gauge the public’s sentiment on the market. They found […]
Central banks went from the transitory narrative to scrambling to prevent another Great Inflation era, faster than it takes to print $100 billion in Fed Treasuries. In a speech today, US Federal Reserve Chairman Jerome Powell pledged to take extreme measures to curb inflation if needed. The central banker warned this includes the possibility of […]
Canadian real estate prices are pushing the limits of affordability. Not just for Canada, but any advanced economy. Canada came in second on the OECD house price to income ratio index. The index, measuring an affordability fundamental, shows the country’s housing is severely overvalued. It also reveals Canada has the second fastest growing gap between […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices Expected To Drop 24%, Can Crash 40%: Oxford Economics Oxford Economics just warned clients that home prices are in for a correction. The global forecasting firm sees Canadian home prices falling 24% by mid-2024. Previously they expected a […]
Canadian real estate prices are unique due to how expensive it has become, but not when it comes to recent price growth. BMO chief economist Douglas Porter explained, once again, monetary policy drove prices higher. Central banks adopted “hyper-stimulative” policies to drive excess demand to push prices higher. To illustrate this, he contrasts Canada with […]
Canadian real estate prices might be in for a bit of a dip if one of the world’s leading forecasters is right. Oxford Economics’ latest forecast shows home prices falling 24% by mid-2024. Higher interest rates and anti-speculation policies are forecast to begin the price declines this fall. If these measures fail to correct prices […]
One of the biggest red flags for Canada’s real estate bubble is that banks have become prominent critics. BMO chief economist Douglas Porter reminded clients this isn’t a supply issue. The bank warned last year that price growth would accelerate without demand measures. Instead of taking that advice, policymakers doubled down on the supply narrative. […]
