The Canadian real estate boom has produced a gold rush, and now everyone is trying to sell you a home. It’s a country-wide phenomenon, as people see a low barrier of entry and large commissions. However, nowhere has taken to the trend like Toronto, which now has more Realtors than teachers. A lot more. Not […]
Canadian real estate’s economic contribution was slowing, but it’s back with a vengeance. Gross domestic product (GDP) made a big jump in October, with real estate doing a lot of the heavy lifting. A component, real estate and rental and leasing (RERL) provided over a tenth of the monthly GDP increase. RERL showed the biggest […]
Canadian homeowners often say affordability isn’t that bad, new buyers just need to stretch further. That’s because they’re most likely unaware they’re paying half of what it takes to buy a home now. Equifax data shows an average homeowner pays half as much on a mortgage compared to buyers in Q3 2021. This trend has […]
After taking a break at the start of the pandemic, Canadian real estate has seen subprime borrowers return. Equifax data shows an abrupt uptick in the share of new mortgages going to subprime borrowers in Q3 2021. It’s still a relatively small share, especially in contrast to historic levels. However, this is the first time […]
Canadians are tapping their home equity with payments that rival rent costs just a few years ago. TransUnion credit data shows monthly home equity line of credit (HELOC) payments have surged in Q3 2021. Making the increase more impressive is this occurred with falling interest costs. Canadians are betting high home prices are here to […]
Canada’s central bank warned real estate buyers to prepare for higher interest rates. It appears buyers are calling their bluff, opting for little rate protection on loans. Bank of Canada (BoC) data shows the share of new mortgages with variable rates doubled in October. Interest costs on most new uninsured mortgages will rise with rates, […]
Canadian households have much bigger mortgage payments, even with cheap debt. Or maybe because of cheap debt? The average mortgage payment in Q3 2021 showed a big jump, according to TransUnion data. Instead of lowering payments, low rates have fueled record home sales and refinancing. The increased demand has driven home prices higher leading to […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada’s Gap Between Real Estate Prices And Incomes Looks Ridiculous Beside US Data Canadian real estate price growth has far outpaced incomes, but it’s getting comically large. Canadian home prices have advanced 64% faster than disposable income from 2005 to Q2 […]
Canadian households are some of the most indebted in the world, with payments to match. Bank for International Settlements (BIS) data shows household debt service ratio (DSR) in Q2 2021. The DSR is the share of disposable income used for debt repayment, in aggregate. Canadians spend more than a tenth of their income repaying this […]
Canadian real estate prices show no sign of slowing down, even going into the winter. According to the Canadian Real Estate Association (CREA), prices jumped by tens of thousands in November. Not in one or two extraordinary markets either, but right across the country. Home prices have increased well over six figures since last year. […]
