Canada’s banks are suddenly warming up to real estate development loans. Bank of Canada (BoC) data shows chartered bank loans to builders and developers doubled in less than a year, after decades of modest growth. The sudden shift aligns closely with taxpayers getting involved in the market, de-risking lenders. Short of a catastrophic blow to […]
Canada’s central bank will hold rates in June despite the economy’s rising headwinds, according to BMO. In a report to investors, the bank warns accelerating core inflation is now above 3%—not just above the Bank of Canada’s (BoC) target rate, but also above its upper tolerance range. Slowing economic factors may bring down inflation eventually, […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s GDP Rises in Q1 2025—But Domestic Demand and Trade Flatline Canadian real GDP climbed 0.5% in Q1, following similar growth in Q4 after a downward revision. At first glance, it appears the economy is on stable footing, but a dive into […]
Canada’s gross domestic product (GDP) may appear stable, but its foundation is anything but. Statistics Canada (Stat Can) data shows that real GDP rose 0.5% in Q1 2025, matching Q4 2024 after a downward revision. While the headline signals expansion, it conceals a more troubling reality: domestic economic activity is flatlining, and the terms of […]
The Greater Toronto Area (GTA) real estate downturn continued with new homes last month. Altus Group data shows April was the worst month for new home sales on record. Lofty inventory and weak demand continue to apply downward pressure on prices, though they remain sticky at current levels. With demand at a record bottom, that […]
The Canadian economy may be outperforming, but households are getting slaughtered. The latest data from the Office of the Superintendent of Bankruptcy (OSB) shows consumer insolvencies surged in March. The 12-month volume has reached levels only seen during the 2010 and 2020 peaks—both periods known for sharp declines in economic activity. While annual growth had […]
Despite soaring equity markets and resilient household spending, Canadian consumer confidence continues to erode. A new report from BMO Capital Markets explores the growing disconnect, suggesting consumer anxieties may not be rooted in actual economic weakness. However, if sentiment doesn’t improve it can slow the economy—triggering the concerns they fear. Canadian Households Feel Gloomy, But […]
Canada’s surging rents have more to do with financialization than fundamentals, according to a new University of Waterloo study. Researchers from the School of Planning conducted a deep dive into Toronto’s rental market and found the most aggressive rental hikes came from large financial landlords. By using techniques like vacant units, algorithmic pricing, and systematic […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Bank of Canada’s Commitment To Mandate Questionable If It Cuts Here: BMO The Bank of Canada’s (BoC) credibility is being questioned for the second time in recent years. While headline inflation plunged due to the carbon tax repeal, the BoC-preferred CPI-Core surged […]
Canadian inflation is officially “too high,” putting the Bank of Canada’s (BoC) credibility into jeopardy for the second time in five years. April inflation data breached the central bank’s upper tolerance band—just weeks after it dismissed accelerating price growth and cut rates, effectively adding inflationary stimulus. BMO had a blunt warning to investors this week: […]
