Canada’s late 1980s real estate bubble was so big it resulted in a correction lasting over a decade. That might have been small in contrast to where the current one is heading. BMO senior economist Robert Kavcic says affordability is currently stretched with low rates. As rates go through normalization, the bubble is expected to […]
Canadians should prepare to pay a lot more to borrow for a mortgage, as easy credit comes to an end. The Government of Canada (GoC) 5-year bond yield reached 1.978% today, the highest level in well over a year. A booming economy and soaring inflation are driving yield expectations higher. As the GoC 5-year bond […]
Canadian real estate prices aren’t cooling against the threat of higher interest rates. Canadian Real Estate Association (CREA) data shows it did the opposite in February. Prices were already growing at a fast rate last year, and that rate has nearly doubled since. Loose policy disrupted the real estate cycle, pushing the market into uncharted […]
Canadian new vehicle sales picked up, but supply chain hiccups are hitting the market. Statistics Canada (Stat Can) reported 94,624 new vehicles sold in January 2022, up 15.3% from the previous year. The increase is huge, but it’s being compared to the slowest January since 2011. The second slowest was this past one, as the […]
One of Canada’s largest banks just made the most aggressive interest rate forecast yet. Scotiabank now sees the Bank of Canada (BoC) overnight rate hitting 3.0% by next year. The bank acknowledges it’s an aggressive call, but it’s needed to control inflation. They feel the BoC kept rates too low for too long, and now […]
Canada’s economy is leaning on real estate once again. Statistics Canada (Stat Can) data shows building construction investment hit $19.1 billion in January. Investment is 3.4% higher than a month before, and 12.0% higher than it was last year. There’s a bit of a catch though — the growth disappears once adjusted for inflation. It […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Quantitative Sleaze: How The Bank Of Canada Mislead Politicians On Real Estate & QE The BoC Governor Macklem appeared before Parliament’s finance committee a few days ago. The head of the central bank explained quantitative ease (QE) doesn’t impact home prices. We […]
Canadians are still saving at an elevated rate, but it’s on the path to normalization — that’s a good thing. Statistics Canada (Stat Can) data shows the household savings rate fell to 6.4% in Q4 2021. The rate was 9% in the previous quarter and 11.4% in the same quarter last year. A shrinking savings […]
Canadian employment made huge gains, as the economy continues to bounce back. Statistics Canada (Stat Can) reported employment increased by 337,000 (+1.8%) jobs in February. Rising jobs pushed the unemployment rate down to just 5.5%, the lowest since May 2019, before public health measures. Experts see the robust employment gains supporting much higher interest rates. […]
Oh. Snap. Canada’s central bank just threw monetary policy shade at the Government of Canada. The Bank of Canada (BoC) just released a new study called The Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal Influence. In it, they examine how a central bank should react when pressured by the government. They argue […]
