Canadian real estate prices are soaring, but the fastest growth is not coming from big cities. BMO chief economist Douglas Porter tells clients to really think hard about this growth. Home prices are now rising even faster than at the peak of the 1980s real estate bubble. Most of that growth isn’t coming from emerging […]
The call is coming from inside the House. Canadian real estate is significantly overvalued, according to the government’s own research. A new report from the non-partisan Parliamentary Budget Officer (PBO) dropped this week. It looks at housing affordability, and is meant to give policymakers a primer on the issue. The report concludes real estate prices […]
Canada’s recent housing boom is expected to satisfy demand for years. Last year, the country saw 271,200 new homes begin construction, up a whopping 25.1% from a year before. This is just under the record reached in 1976, and obviously much higher than normal. That might have been the top of this cycle, according to […]
There’s a good reason you might be feeling Canada’s economic recovery, and that’s because of how it’s measured. Canada’s gross domestic product (GDP) ripped higher in Q3 2021 and it’s just shy of the pre-2020 peak. Aggregate GDP measures are only useful for the size of an industry, not how it impacts people. For the […]
Canadian inflation didn’t hear your transitory call apparently — it’s widening to other categories. Statistics Canada (Stat Can) data shows the consumer price index (CPI) soared in January. The annual growth rate reached 5.1% for the month, advancing from 4.8% a month before. Canada’s inflation hasn’t grown this fast since September 1991, three decades ago. […]
Canada’s vacant home problem is improving but not very quickly. Statistics Canada (Stat Can) Census 2021 data reveals vacant homes fell from 2016. Resort towns have the highest share of vacant homes. This occurred despite the boom in year round residents in these cities. Let’s take a dive into the data. Canada’s Vacant Homes The […]
More Canadians are looking to buy condos, but they’re being warned not all are equal. The Canadian Institute of Actuaries (CIA) released a study on condo reserves this week. In the 140-page report, the organization warns low reserves often create misleading overvaluations. Over the long run those values may not benefit the current owners though. […]
Canadian real estate prices are moving at a record-shattering speed these days. Canadian Real Estate Association (CREA) data shows home prices hit a new record in January. Though they didn’t just hit a record for price, but the growth rate as well. Despite warnings of higher rates and a regulator calling the market a bubble […]
Canadians are fleeing expensive cities and heading to distant small towns. RBC economist Carrie Freestone looked at population growth in their latest research note. The bank found “resort towns” are seeing the fastest growth in the country. In general, distant suburbs of major cities are growing the fastest. This can create a long-term boom for […]
Central banks may have held rates too low for too long, making it difficult to normalize. The US is now discussing the flattening of the “yield curve,” often a sign of an economic slowdown. Canada is ignoring a similar discussion, despite flattening even faster than the US. Flattening quickly turns into yield curve inversion, considered […]
