This Week’s Top Stories: Canadian Real Estate Industry Sees Lower Prices, & Falling Real Wages
Our top stories this week include Canada’s real estate industry lowering their forecast for home prices, & households see lower real wages.
Canadian Mortgage Debt Grinds To A Halt After Hitting Over $2 Trillion
Canadian mortgage credit continues to slow as rising rates grind the market to a halt. Bank of Canada (BoC) data shows outstanding residential mortgage credit rose in November. However, it was one of the slowest months we’ve seen since 2020. Annual growth remains robust, but recent activity is bringing the trend lower. Canadian Mortgage Debt […]
Canadian Real Estate Prices To Continue Falling In The Near-Term: RBC
Canada’s largest bank sees a bottom to sales, but thinks there’s more pain for home prices—at least near-term. That’s the take from RBC, that feels home prices are stabilizing but will fall further. Don’t expect a quick recovery either, with affordability challenges weighing down future sales. Canadian Real Estate Sales May Have Found A Floor […]
Canadian Households See A Big Drop In Real Wages Ahead: Bank of Canada
Despite Canada’s booming labor market, households see a bleak year ahead. Bank of Canada (BoC) conducted its quarterly Survey of Consumer Expectations for Q4 2022. The results show households expect inflation to continue ripping higher over the next year. At the same time, the outlook for their own wages have eroded. The combination has led […]
The Canadian Real Estate Industry’s Forecast Expectations Are Crashing
Expectations from Canada’s largest real estate bulls are crashing. The Canadian Real Estate Association (CREA), the organization that oversees Realtors, released its latest quarterly forecast for home prices in 2023. Most markets are now forecast to see home prices contract this year, but that’s not the biggest takeaway. Expectations from the industry rapidly collapsed as […]
This Week’s Top Stories: Canada’s Bank Regulator Wants Tighter Rules As Real Estate Prices Crash
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Bank Regulator Wants Tighter Rules To Address Real Estate Risks Canada’s bank regulator is looking to protect the financial system from mortgage risks. Last week, OSFI began a public consultation on new mortgage measures. They include limits on loan-to-income ratios, new […]
Canada’s Bank Regulator Wants Tighter Rules To Address Real Estate Risks
Canadian homebuyers might face stronger regulations around mortgage borrowing soon. Office of the Superintendent of Financial Institutions (OSFI), Canada’s bank regulator, is soliciting feedback on a series of new rules to reduce leverage and mitigate risk. Now that risk tools like the stress test have proved why they’re important, they’re seeking to address any gaps […]
Nearly 1 in 3 Canadian Mortgages Are Still Going To Overleveraged Borrowers
Canada’s real estate market got a big boost from overleveraged borrowers, according to its bank regulator. OSFI data shows the share of mortgage borrowers that are overleveraged remains high. Overleveraged borrowers, those with a loan to income ratio of 450% or higher, have begun to taper with higher rates, but still represented 1 in 3 […]
Canadian Mortgage Payments Surge In Size, Largely Due To Real Estate Prices
Canadian mortgage payments were seeing double-digit growth before rate increases, as real estate prices surged.
Canadian Building Intentions Remain Elevated, But Inflation Killed Growth
Canadian real estate developers are still pumping significant cash into building permits, but inflation is killing that growth.
