A Canadian Big Six bank took on a key narrative from the central bank in a research note to clients this weekend. BMO Capital Markets‘ Rates and Macro Strategist Benjamin Reitzes addressed remarks from the Bank of Canada (BoC) Governor Tiff Macklem. Last week the Governor said high inflation was a supply issue, and low […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Bank Of Canada Announces QT, Reverse Of The Program That Boosted Real Estate Prices Canada’s central bank is letting the public know they plan to tighten credit in the country further. The Bank of Canada (BoC) explained that quantitative tightening (QT) […]
Canadian real estate got some more bad news this week — building intentions are once again back in correction territory. Statistics Canada (Stat Can) data shows building permits made further declines in January. A sign of future activity, consistent declines may show building is past its peak. Permits are still much higher than was normal […]
Real estate investors were cautioned that risk happens fast, from Canada’s oldest bank. BMO Capital Markets warned clients to expect the housing market to “be tested.” Higher interest rates and the end of “too loose” policy are expected to cool price growth. In frothy real estate markets, sentiment can shift very fast when prices slow, […]
Canada’s central bank finally acknowledged inflation is a monetary policy issue. Bank of Canada (BoC) governor Macklem dumped the transitory inflation narrative today. In a speech to Toronto’s CFA Society, he explained rising interest rates are just one monetary policy tool they’ll use going forward. The other is quantitative tightening (QT), a program designed to […]
Greater Toronto real estate is still a tight market, but all of a sudden it has a lot more inventory. Toronto Regional Real Estate Board (TRREB) data shows prices ripped higher in February. Positive price growth news didn’t just end there though, as the market actually saw annual growth accelerated. Oddly enough, this occurred as […]
Canadian real estate prices just turned the least affordable it has been in decades. A National Bank of Canada (NBF) analysis shows affordability worsened in Q4 2021. They found this was the case for every quarter last year, as low rates encouraged higher prices. As the overnight rate rises, housing affordability is expected to further […]
Canada’s central bank made its first interest rate hike since slashing it down to nearly nothing. The Bank of Canada (BoC) announced it will raise the overnight rate today, marking a path to rate normalization. Today’s hike was widely expected, and the first of many that are forecast over the next two years. Rising rates […]
Canadian politicians promoted a number of housing affordability measures during their campaign. The ones played up the most were vacancy taxes and non-resident speculation measures. Now that they’re in office, they aren’t so keen on actually implementing any of them. This might be due to a piece of paper buried pre-election — a threat of […]
Canadian household budgets aren’t just getting hit by inflation — they’re taking home less too. Statistics Canada (Stat Can) data shows household disposable income contracted in Q4 2021. This is the second consecutive quarter disposable income dropped, and it’s been a significant decline from the peak. Not great, but expected as the economy improved and […]
