The Canadian property bubble is at the part where some people now only see the expensive real estate that can be used for housing. One of Canada’s national newspapers recently ran a staff-written piece on why public parks are a waste of space. Instead, they suggest parks should be used for more housing or run […]
Greater Toronto real estate is showing signs of cooling, but buyers haven’t noticed. Toronto Regional Real Estate Board (TRREB) data shows home prices reached a new record high in May. It was accompanied by accelerating price growth, despite a decline in home sales. Home sales falling faster than new listings is typically followed by a […]
Greater Vancouver real estate is starting to see some signs of price growth cooling. Real Estate Board of Greater Vancouver (REBGV) data shows home prices hit a new high in May. It did so with the annual monthly growth accelerating even faster. However, the monthly price increase was much smaller than the one made in […]
Canada’s housing boom isn’t just home sales — it’s consuming the whole economy. BMO senior economist Robert Kavcic crunched home renovation numbers for Q1 2021. The bank found household spending on renovations hit a new high last quarter. Spending in this segment is growing so fast, it now represents a record share of the economy. […]
Low interest rates help to bring working and middle-class prosperity. Inequality will drop if only people could borrow more years of their income today. At least that’s the narrative society was sold on for the past 100 years. It turns out there’s no evidence to show that’s true. In fact, the evidence indicates it was […]
One Canadian bank doesn’t see home prices coming down anytime soon. Scotiabank shared their latest risk forecast in their Q2 2021 earnings. As of April 30, 2021, the bank sees a better outlook than they did in January. Home price growth is forecast to accelerate in the base and best case scenarios. As for the […]
Who needs businesses when your homes are making so much money? BMO chief economist Douglas Porter crunched residential investment data for Q1 2021. The bank found residential investment now represents a record share of Canada’s GDP. It’s now such a large share of GDP, more investment capital is going into housing than businesses. Canadian Housing […]
Canadians are more sparingly applying for credit… except when it comes to a new mortgage. TransUnion data shows credit originations generally fell in Q4 2020. Every segment saw an annual decline with the exception of mortgages. New mortgage originations jumped over 25%, as more people dive into the housing mania. Canadian Mortgage Originations Rise Over […]
Canadian housing investment is swallowing the whole darn economy. Statistics Canada (Stat Can) data shows residential investment is at a record high in Q1 2021. The recent housing boom has allowed the segment to grow much faster than gross domestic product (GDP). Consequently, it now represents a much larger portion of the Canadian economy. The […]
Canadian real estate is receiving a big warning sign from an indicator that was an alarm for the US in 2006. The house price-to-rent ratio shows Canadian real estate is overvalued. When contrasted to the US is when you really get a feel for how much Canada went all-in on real estate. It makes 2006 […]
