A prominent skeptic of Ontario’s ambitious housing plan has emerged — Canada’s oldest bank. The province’s Housing Affordability Task Force released a plan to build 1.5 million homes over 10 years. BMO senior economist Robert Kavcic dumped a bucket of cold water on the plan. Not only does the bank say it doesn’t make sense, […]
Millennials aren’t having children and experts believe high home prices are a big part of the issue. An NBER working paper titled House Prices and Birth Rates: The Impact of the Real Estate Market on the Decision to Have a Baby looks at the influence of home prices on births. They found higher home prices […]
Canada is shying away from its image as a petro-state, but its economy is moving in the other direction. BMO Capital Markets’ latest research note looks at Canada’s merchandise trade balance for 2021. Canada produced its first surplus since 2014, way back when oil was above $100 barrel. That’s not a coincidence, with energy prices […]
Canada’s major real estate markets are seeing price growth slow — the rate was just really high. Statistics Canada (Stat Can) updated its Residential Property Price Index (RPPI) for Q4 2021. The six-city index didn’t grow fast enough to prevent annual growth deceleration, though. Growth remains high, but it’s finally beginning to slow — except […]
Canada is preparing to tighten interest rates with the US, but it will encounter some hurdles. That’s the take from Jimmy Jean, Chief Economist at Desjardins. In a note to clients today, the economist said he expects Canada to start rate hikes with the US. However, the country won’t be able to keep up as […]
Canada’s economy is beginning to normalize, including the number of businesses filing for insolvency. According to Office of the Superintendent of Bankruptcy (OSB) data, business insolvencies remain lower than pre-pandemic levels. Though in Q4 2021, there’s been a sudden surge of filings making up for lost time, rising at the fastest rate in 36 years. […]
Canada has earned itself a reputation as a hub for dirty money over the past years, and it doesn’t seem to be phased by it. Financial Transactions and Reports Analysis Center of Canada (FINTRAC) data show reports of suspicious transactions have surged higher in recent years. At the same time, the financial watchdog is conducting […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Resembles 80s Bubble, Higher Rates To Solve Supply Issue: BMO Canada’s real estate market resembles the late 80s bubble, according to BMO. Charting Ontario price growth over the two periods, they found similar trajectories. They also see the same […]
As public health restrictions linger, more companies realize they don’t need office space. Statistics Canada (Stat Can) data shows new public health restrictions had more people work from home in January. Nearly a quarter of labor now permanently works from home, with that share rising sharply in big cities. The shift can change cities from […]
Canada’s oldest bank sees today’s real estate markets having a lot in common with the late 1980s bubble. In a research note to its financial markets customers, the Bank of Montreal (BMO) highlights the similar trajectory homes have made. A similar event that slowed home price growth during that period is approaching — higher interest […]
