Canadian real estate is very overvalued, according to a massive credit rating agency. Moody’s Analytics released its Canadian real estate model this week. The firm’s model shows markets are overvalued by up to 91% across the country. As disastrous as that sounds, the firm isn’t expecting a big housing crash. The baseline model shows low […]
Canadian bond yields are rallying, and that’s bad news for people looking for cheap mortgage debt. The Government of Canada (GoC) 5-Year bond yield surged higher on Wednesday. The yield on this bond influences 5-year fixed mortgage rates, but have yet to be priced in. The last time yields were at this level, mortgage rates […]
Pour one out for Canada’s cheaper-than-cheap flood of easy credit, because it’s on its way out. Today the Bank of Canada (BoC) announced their quantitative ease (QE) program is coming to an end. The program, which floods markets with cheap debt, was used to drive inflation and home sales higher. Now that these issues have […]
Canada is in the middle of a real estate boom, but home builders are feeling less confident. The Canadian Home Builder Association (CHBA) released its Housing Market Index (HMI) for Q3 2021 this week. The index, which measures builder sentiment, pulled back in the last quarter. Higher construction costs and an updated stress test is […]
Canada is making a triumphant return to feudalism, where homeownership requires family wealth. A CIBC Capital Markets analysis shows 30% of first-time homebuyers received a down payment “gift.” Not a little help either, but it was the primary source of funds for the majority that received a gift. It’s now occurring at such a scale, […]
Mortgage industry veteran Rob Butler, founder of Butler Mortgages and one of the most important names in the industry, shares his insights on the “infinite up” culture and the irrational exuberance of Canadian real estate. Want more? Subscribe to our new YouTube channel for analysis, news, and interviews you won’t find anywhere else.
It’s time to take off the training wheels for Canada’s economy, which is now looking overstimulated. That’s the take from BMO‘s Douglas Porter, who sees stimulus coming to an end as early as this week. The Bank of Canada (BoC) is increasingly looking out of touch with reality. BMO, amongst others, now sees no justification […]
Time for your cheat on this week’s most important stories. Canadian Real Estate The World Has Millions Of Vacant Homes, And 1.3 Million Are In Canada: OECD Millions of homes sit vacant across the world, and Canada is one of the worst offenders. OECD data shows 1.34 million vacant homes in Canada, the fifth highest […]
The whole world is undergoing a housing shortage, but vacant homes are barely budging. The OECD‘s latest data drop shows 42 million of its 426 million homes are vacant. Yes, roughly one in ten homes in advanced economies are empty. There are literally years of housing supply being used as an alternative to gold. Rather […]
Canadian new home prices may have just seen the first sign of cooling in over a year. Statistic Canada (Stat Can) released the New House Price Index for September. The agency said fewer than half of cities saw new home prices advance last month — a drag on annual growth. Annual new home price growth […]
