Canadian inflation looks less transitory by the day, as costs surge higher and higher. Statistics Canada (Stat Can) data shows the consumer price index (CPI) made a sharp climb in August. Growth is now well in excess of the base effect, and not just an illusion. One of the biggest drivers has been shelter costs, […]
Canadian real estate saw the fewest home sales in over a year, as the market continues to cool. Canadian Real Estate Association (CREA) data shows existing-home sales fell in August. Despite falling, the month printed the second biggest number ever. Sales are also still much higher than normal. That said, it was a very sharp […]
Canadian housing supply plays a role in home price growth, but doesn’t explain all of it. The Bank of Canada (BoC) published a paper on Canadian Housing Supply Elasticities. In it the researchers explain supply plays a big role, but not to the extent we’ve seen. Over the short-term, it fails to explain the extreme […]
Young Canadians aren’t interested in joining the trades, and it’s a big problem. RBC Economics took a look at skilled workers, and the anticipated shortage. The labor shortage isn’t just due to a large demographic cliff though. Not enough young adults are attracted to the field, nor are new immigrants. This squeeze can result in […]
Canadians must be hoping for a recession every year, since they’ve never made more money. A National Bank of Canada (NBC) analysis shows household wealth surged in Q2 2021. Their wealth actually surged so fast, the ratio of debt hasn’t looked smaller in almost 2 decades. The bank expects this to fund a significant spending […]
Canadian building investment is falling, and it’s due to a lack of housing investment. Statistics Canada (Stat Can) data shows total building investment fell in July. Taking a dive into the data, we can see this is due entirely to falling residential investment. While it dropped, no need to worry about an inventory squeeze. The […]
Canadian real estate has long been frothy, but how does it look compared to other countries? According to the US Federal Reserve (the Fed) exuberance index in Q1 2021, pretty bad. Only two G7 countries are considered exuberant markets (a.k.a. bubbles) — Canada and Germany. Those two countries are also the longest-running bubbles of any […]
Time for your sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Is Now A Bubble On Top Of A Bubble: US Federal Reserve Exuberant Canadian home buyers have pushed real estate into a bubble — again. The US Federal Reserve’s Exuberance Index shows Canada completed 5 exuberant quarters. This is enough […]
Canadian household indicators are showing their debt problems are rapidly resurfacing. Statistics Canada (Stat Can) data shows the ratio of household debt to disposable income surged in Q2 2021. This measure indicates debt is growing faster than the rate of income. Debt as a ratio of income has actually never seen such fast annual growth […]
Canadian debt is dirt cheap, but it won’t be this cheap forever, warns BMO. Douglas Porter, the bank’s chief economist, expects the cost of borrowing to remain “low for long.” He just doesn’t see it being quite as low as the current stimulus driven environment. As governments taper stimulus to fund its spending, borrowing rates […]
