A large Canadian financial institution sees higher mortgage rates in your future. Desjardins’ mortgage forecast shows they expect mortgages to continue to climb from here. They see 5-year fixed mortgage rates hitting pre-pandemic levels by next fall. That is before the first expected hike to the overnight rate from the Bank of Canada. Canadian Mortgages […]
One of Canada’s largest banks totally thinks your home is worth the appraisal. They’re just going to double-check your income though, uh… for a totally unrelated reason. Home equity levels may be exaggerated, said BMO chief risk officer Patrick Cronin. On the bank’s Q2 2021 earnings call, the executive explained the bank is putting a […]
Canada’s largest bank thinks the real estate mania might be coming to an end, as conditions loosen. The market is still very tight, according to RBC senior economist Robert Hogue. However, buyer demand is falling much faster than new inventory. April reported the third consecutive month where buyers dropped out of the market faster than […]
Canadian real estate’s high flying prices are increasing the risk of a large correction. BMO Q2 2021 disclosures show the bank made big revisions to its risk forecast. In the best-case scenario, they see exuberance pushing prices more than twice as high as previously thought. In the worst case, they’ve more than doubled the size […]
Canadian real estate prices may be hitting peak growth soon… if a leading indicator continues to hold true. The sales to new listings ratio (SNLR) finally peaked at an absurdly high level, and has since made a sharp drop. The ratio, used as a measure of inventory absorption, has a track record of leading price […]
Canadians aren’t using their homes like an ATM. At least not as much as you would think. Bank of Canada (BoC) data shows home equity line of credit (HELOC) balances reached a record high in March. It barely did so, with a rate of growth so low it would be negative if inflation adjusted. This […]
New home sales are finally starting to slow down across the US, but they have a long way to go to get to typical levels. US Commerce Department data shows new home sales fell in April. The drop was also accompanied by a large revision for the previous month. It’s too soon to tell if […]
Greater Toronto new home prices slipped, as inventory helped to ease pricing pressure. BILD GTA, a local developer group, said sales climbed in April, especially in the condo segment. Higher inventory helped to attract more buyers, but also contributed to lower prices. New home prices fell up to $48,000 in just one month. A hefty […]
Greater Vancouver new home sales are on the rise, as the market gobbles up new inventory. MLA Canada data shows April was a busy month for new home inventory, with buyers absorbing more than half of units launched. Pandemic delays led to a significant backlog of inventory though, that will be coming to market soon. […]
One of Canada’s frothiest market indicators surfaced — rents are rising with vacancies. Canada Mortgage and Housing Corporation (CMHC) data from their 2020 rental survey shows a sharp uptick in vacancies. Normally this is expected to bring prices down, but not in a property bubble. Rental prices continue to rise along with increasing vacancies. In […]
