Canadian real estate buyers may get a little psychological shock later this week. The Bank of Canada (BoC) will update the public on monetary policy next Wednesday. Three Big Six banks said they expect the central bank to discuss higher rates. Two of those, expect a discussion on rate hikes happening earlier than stated. All […]
One of Canada’s largest banks made an unusual move — they called out the role the Bank of Canada (BoC) played in the property bubble. Well, they subbed them. BMO senior economist Robert Kavcic sent clients a housing analysis this morning. He attributes the transition from a hot market to one that’s going to burn […]
The Canadian economy is improving faster than expected, meaning supports can start fading. Bank of Canada (BoC) deputy governor Gravelle announced the end of many market support programs on Tuesday. The economy has improved, meaning the gradual withdrawal of stimulus can now begin. As supports begin to taper, overly easy credit is likely to disappear […]
Unless you’ve been sleeping under a rock, you’ve probably noticed something unusual this recession – high unemployment and higher home prices. Odd, right? Usually when people are at risk of losing their jobs and business, their cost of living doesn’t rise. Free markets tend to manage risk this way, choking off credit as economic risk […]
Canada’s central bank’s rate announcement was brief, but had a lot of details for investors to unpack. Bank of Canada (BoC) announced they would be making no changes to rates at this time, as widely expected. Two details did stand out though – housing, and quantitative ease (QE). The central bank is surprised by housing […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Prices Grew Over 25x Faster Than U.S. Prices Since 2005 Poor policy choices have led to a comically large gap between Canadian and US home prices. Canadian home prices generally move in line with US home prices, but […]
Canada’s central bank didn’t devote a whole section for real estate to their latest monthly report like they usually do. However, the Bank of Canada (BoC) did provide a lot of insights in the January Monetary Policy Report. The central bank believes “elevated” housing activity was the result of a shift in buying behavior, as […]
Canada’s central bank is using billions to flood the mortgage market with cheap money. It hasn’t been very effective, considering the scale of the purchase. Bank of Canada (BoC) data shows a big mortgage bond buying spree since the beginning of the pandemic. The dollar value of the bond buying was known, but we’re only […]
Canada’s central bank is desperately trying to prop up real estate markets with liquidity. Bank of Canada (BoC) has been injecting billions into Canada Mortgage Bonds (CMBs). The central bank began purchasing a few million worth of bonds during last year’s real estate slow down. As the pandemic hit, the BoC began buying hundreds of […]
Are falling interest rates going to push Canadian real estate prices even higher? That’s not exactly what’s happening right now. The Bank of Canada (BoC) has been rapidly lowering the overnight target for interest rates in response to COVID-19 economic slowdowns. Concerns about this overheating the market are starting to bubble up (no pun intended). […]
