The number of Canadians expecting home prices to grow is falling very quickly. BMO senior economist Robert Kavcic weighed in on the latest home price growth sentiment. The expectation of growth is beginning to fall nearly as fast as it grew. While it doesn’t mean lower prices (yet), it shows attitudes supporting these price levels […]
Canada’s real estate industry is asking bank regulators to loosen lending standards. OSFI, the bank regulator, is currently holding feedback on B-20 Guideline revisions. The Guideline, better known as the “stress test,” ensures borrowers can pay their mortgage after a modest rate hike. The Toronto Regional Real Estate Board (TRREB) wants some tweaks, arguing it’s […]
The US economy’s booming recovery has created a temporary bump to inflation… that may not be temporary. BMO believes part of the jump in the consumer price index for April was due to a fleeting base effect. However, the bank’s senior economist Robert Kavcic argues there’s a little more to it. More recent growth is […]
Great, you borrowed a downpayment from your parents. Only one problem — your income needs to be much higher to qualify for the mortgage. The majority of households would not qualify for a mortgage on a typical home, according to National Bank of Canada (NBC) data for Q1 2021. That’s for a typical home, if […]
The Canadian economy is recovering so fast, the central bank may soon have to hike rates to cool it down. That’s the take from the National Bank of Canada (NBC), who accelerated their forecast timeline today. They expect output gap closure by the middle of next year, as well as inflation running hot. Rising inflation […]
Greater Toronto real estate’s inventory squeeze appears to be rapidly coming to an end. The sales to new listings ratio (SNLR) made a very sharp decline in April, marking the third month in a row. Such sharp corrections in the SNLR are historically associated with falling price growth. Over just the past 3 months, the […]
Canadians hoping higher incomes will boost home prices are in for a disappointment. In Q2 2020, the average household income soared, raising home price expectations. An analysis from Dejardins shows the average after-tax household is much lower in Q1 2021. In just one year, incomes soared, fell, and are now basically where they were a […]
Canadians should prepare for the Hunger Games and an all-out attack on affordability. That’s the takeaway from the Canada Mortgage and Housing Corporation (CMHC) Spring 2021 forecast. Last year’s doomsday forecast is now followed by one of ambitious price growth. The national housing agency’s worst-case scenario is prices grow much faster than incomes. If you […]
Canadian real estate markets are placing a big premium on living further from the city. Bank of Canada (BoC) found city centers showed the smallest annual price growth in Q4 2020. Home prices generally saw larger growth further from the city, as people flee the centers for more space. Greater Toronto Real Estate Prices Climbed […]
Canadian home prices are going to have a difficult time moving higher from here. Desjardins, the country’s largest cooperative financial group, updated its affordability index for Q1 2021. At the national level, the index plunged to the worst level of affordability in over a decade. Their model indicates a substantial price increase would be difficult […]
