Better Dwelling

This Week’s Top Stories: Canadian Real Estate To See Big Changes Post Election, and Mortgage Lenders Panic As Yields Soar

September 26, 2021

Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada Re-Elected The Same Leadership, But Real Estate Will Be Very Different Canada re-elected the same leadership, but with a very different housing strategy. They promised demand inducement schemes, supply subsidies, and improvements in trade transparency. The demand measures are likely […]

Canada

Canada Has Never Seen So Many Homes Under Construction At The Same Time

September 25, 2021

Canadians are about to see a flood of housing supply like they’ve never seen before. An RBC analysis found multi-year highs for various stages of new home construction in Q2 2021. New housing starts reached the highest level in over three decades. Homes completed are expected to hit a similar multi-decade high in the next […]

Canada

Canadian Mortgage Lenders Are Considering Reversing Rate Cuts Made Days Ago

September 24, 2021

Canada’s largest banks cut mortgage rates last week, and now they might need to reverse the cuts. Half of Canada’s “Big Six” banks cut the interest rate on their 5-year fixed rate mortgages at the end of last week. It might have seemed like a no-brainer back then, but a week is forever ago in […]

Australia | Global

Australia’s High Real Estate Prices Are A Threat To Financial Stability, Says Central Bank

September 23, 2021

Australia’s central bank is warning home prices may threaten the country’s financial stability. Reserve Bank of Australia assistant governor Michele Bullock gave a housing update this week. She warns the quality of borrowers has been deteriorating, as they take on more leverage. As the share of these borrowers surges, so does the risks they bring […]

Canada

Canadian Bond Yields Are Climbing As Central Banks Turn Hawkish: BMO

September 23, 2021

Canadian bond yields have been sliding for the past few weeks, but that changed pretty fast. Global bond yields surged on Thursday after central banks expressed hawkish views overnight. By communicating their intention to ease stimulus, an abrupt market change occurred. Long-term yields have now climbed to the highest level in months. Experts say this […]

Canada

Canada Plans To Foster Its Real Estate Bubble By Raising The Maximum Mortgage Size

September 23, 2021

Canada plans to increase credit access for the country’s riskiest borrowers in the years to come. A re-elected government may not seem like change, but they promised a big one — larger insured mortgages. High-ratio borrowers will see an increase of up to 25% of their maximum mortgage size. Expansion of credit during a low […]

US Existing-Home Sales Fell For The First Time In Over A Year, Price Growth Slows

September 22, 2021

US home buyers are busy with purchases, but there are fewer present than a few months ago. National Association of Realtors (NAR) data shows home sales fell in August. The drop was accompanied by a decline in inventory as well. Despite the relatively neutral market position, price growth is starting to slow. US Existing-Home Sales […]

Canada

The Ontario Teachers’ Pension Just Bought Canada’s Largest Reverse Mortgage Lender

September 22, 2021

Canadian home prices are moving faster than wages, leaving a lot of cash-poor, house-rich Boomers. The Ontario Teachers’ Pension Plan Board (OTPPB) must see opportunity, because they are buying a large reverse mortgage lender. The pension announced its acquisition of HomeEquity bank today. It might not be a familiar name, but their flagship product might […]

Canada

Canadian Inflation Forecast Doubles For 2022, Near-Term Risks To The Upside: OECD

September 22, 2021

Elevated levels of inflation may stick around longer than central banks have let on. The Organization for Economic Co-operation and Development (OECD) released its 2021 summer outlook. The intergovernmental agency for advanced economies revised Canada’s inflation forecast higher. Not a little either, they now see double the rate of expected inflation next year. The agency […]

Canada

Canadian Job Vacancies Are Soaring Due To Stimulus, But Wage Growth Isn’t: BMO

September 21, 2021

Canadian employers are making jobs faster than people can fill them. In two separate reports, BMO economists took a dive into rising job vacancies and wages in Q2 2021. They found job vacancies hit a new record high last quarter. A lack of labor doesn’t appear to have much urgency though, as wages are still […]