Greater Toronto’s real estate rut shows no signs of ending soon. BMO Capital Markets recently shot down the pent-up demand and slowing supply narratives, warning investors the market is filled with supply no one really wants. Toronto Real Estate Weakness Is Being Led By Condos Source: BMO Capital Markets; TRREB. Toronto’s slide continued last month […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Public Spending Spree Means Higher Mortgages For Longer A new National Bank of Canada (NBC) report confirms what most already know—government spending is spiralling. Government “investment” has grown at 3.5% annually over the past three years, over double the 1.7% rate […]
Canada’s central bank is “chasing its tail,” warns a new Bank of Canada (BoC) staff paper. The researchers studied the impact of including mortgage interest in the Consumer Price Index (CPI), discovering the circular logic. The BoC sets interest rates based on CPI, but CPI includes mortgage interest costs driven by those very rates. As […]
Canada’s banks are still discovering the extent of the mortgage leverage problems their customers face. Canadian Bankers Association (CBA) data shows the mortgage arrears rate climbed in December, hitting a nearly 5-year high. The rate was driven by an abnormally large monthly jump in mortgages entering arrears. Canadian Mortgage Arrears Rate Approaches 5-Year High CBA […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices Exit Holding Pattern, Dive Towards Hard Landing Since the initial plunge in 2022, existing home prices have moved sideways, waiting for the market to make up its mind. It appears it has, with prices moving lower—shedding 0.4% in […]
Home prices moved lower at the national level, but that reality isn’t aligned with buyers in most provinces. Canadian Real Estate Association (CREA) data shows the price of a typical home fell in January, but most provinces saw prices rise. The decline has been largely confined to BC and Ontario, where weak sales and robust […]
Canadian real estate prices have come down, but this level still isn’t working for anyone. CIBC Economics wrote to investors this week, explaining prices have come down considerably, improving affordability. More affordable isn’t the same as affordable though, with demand nearly collapsing. The bank warns that housing starts have been misleading, reflecting past demand—not current. […]
Canadian inflation is slowing, but most households are unlikely to be feeling that relief. Statistics Canada’s (StatCan) Consumer Price Index (CPI) decelerated in January, fueling speculation that rate cuts may be on the horizon. A closer look reveals the entire deceleration can be accounted for by just mobile phone plans. Not because households are forking […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Long-Term Unemployment At ’90s Levels, 6 Months To Find A Job Canadians may want to put aside more savings, just in case of job market disruption. Nearly 1.5 million people were unemployed in January, while job vacancies continue to grind lower. […]
The Bank of Canada (BoC) official who put the productivity “crisis” in the spotlight, returned this week with a familiar fix: invest in artificial intelligence (AI). Deputy Governor Carolyn Rogers urged businesses to adopt AI, comparing its productivity potential to the adoption of the internet. BMO chief economist Douglas Porter dumped cold water on those […]
