This Week’s Top Stories: The Canadian Property Bubble Starts Deflating, and Brain Drain Signs Appear
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Over Half of Canadian Home Buyers Are Borrowing The Maximum They Can: CMHC
Canadian real estate prices have been generous to sellers over the past year, but not so much for buyers. The Canada Mortgage and Housing Corporation (CMHC) released the results of its annual Mortgage Consumer Survey for 2021. One of the more interesting stories told in the data is how buyers are navigating this market. It […]
The Canadian Property Bubble Is Deflating Right On Schedule
The Canadian property bubble could have been built by the Swiss, it’s moving so precisely. The sales to new listings ratio (SNLR) is a measure of absorption, and has a track record of leading price growth. A couple of months ago, we said the rapid decline in the ratio would lead to price growth peaking […]
Canadian New Vehicle Sales Print The Second Worst May In Over Two Decades
Canadians are suddenly pulling back on their new vehicle buying binge. Statistics Canada (Stat Can) data shows new vehicle sales grew on an annual basis in May. Sadly, it wasn’t because the market was experiencing robust growth. It was due entirely to the base effect of comparing sales to an early pandemic month. Zooming out, […]
Canada’s Property Bubble Just Hit The Wall For Price Growth As Key Indicator Flips
Canadian real estate may have just peaked, according to official data this morning. Earlier this month we took a look at Toronto and Vancouver, and why the top for growth is here. Data from the Canadian Real Estate Association (CREA) confirms the same National trend. Home prices hit a new all-time high in June, and […]
New Zealand’s Central Bank Calls Home Price Growth “Unsustainable,” Halts QE
New Zealand may be the first advanced economy to hike interest rates. The Reserve Bank of New Zealand (RBNZ) abruptly announced a halt to the Large Scale Asset Purchase (LSAP) program. Along with the announcement was the release of the Monetary Policy Committee notes. The Committee said the risk of deflation has now passed, and […]
Bank of Canada To Further Taper Toxic Program That Helped Push Home Prices Higher
Canada’s central bank is closer to ending the program that added rocket fuel to home prices. The Bank of Canada (BoC) announced it will taper its quantitative ease (QE) program. QE has been a major contributor to the flood of cheap cash that’s helped push home prices higher. As the program gets close to an […]
Canadian Real Estate Prices Are Up 19%, Average Price Hits $734,000 In June
Canadian real estate prices are rising at a breakneck speed — even with slowing sales. The RPS House Price Index (HPI) made a huge leap in June for almost all markets. It didn’t matter where, even small towns have begun to outperform big cities. Let’s dive into the frothy month Canada just had. Canadian Home […]
Canada’s Pile of Household Savings Is Mostly Held By The Rich, and Won’t Be Spent
Canadians have an epic pile of savings accumulating, but it’s not as big as most economists think. Oxford Economics‘ Tony Stillo took a deep dive into the household savings rate this week. The firm found the gross numbers exaggerate the total that can actually be used. Further, wealthier households represent more than half of the […]
Canadian Property Bubble Braces For Brain Drain As Half of ON Youth Consider Moving
The Canadian property bubble is at the point where it’s about to produce brain drain. At least in Ontario. Abacus Data conducted a survey on housing perceptions recently. The survey, commissioned by OREA, produced dozens of insights showing a public frustrated by a property bubble. Buried amongst those insights though was a big standout — […]
