Canadian real estate prices have been spiraling lower, but is a change in trend around the corner? Data from the Canadian Real Estate Association (CREA) shows that the price of a typical home increased in February. The national composite’s benchmark price had not moved higher since rate hikes began nearly a year ago. One increase […]
Canada was no exception to the retreat of global bond yields after the US banking crisis hit last week. The Government of Canada (GoC) 5-Year Bond yield plunged at one of the fastest rates in a generation. It wasn’t alone, with most yields falling—potentially signaling lower borrower costs. That is, if the panic-driven drop sticks […]
Canadian real estate is sucking up the oxygen in the room once again, as rising rates pinch households. Statistics Canada (Stat Can) data shows households are spending a record share of their disposable income on mortgage payments. Rising prices and rates are consuming even more income for payments than during the 90s bubble. However, this […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Only One of Canada’s Big Six Banks Expects Real Estate Prices To Rise Canada’s Big Six banks have released their base case forecasts for real estate prices and only one of them expects prices to rise in the next year. RBC is […]
A Canadian regulator is sounding the alarms on private mortgages, but are they too late? The Financial Services Regulatory Authority of Ontario (FSRA), which oversees mortgage brokers, recently issued a warning on the risks of private mortgages. They have observed a boom in consumers using these high interest loans, often paired with interest only repayment. […]
Canada’s “Big Six” banks are now some of the country’s biggest real estate bears. Quarterly regulatory filings reveal their forecasts used for risk planning, and capital allocation. Despite seeing long-term value, just one Big Six has forecast home prices rising over the next year. Most don’t see a quick recovery either, with some expecting prices […]
Canada’s central bank didn’t break its pause, but signaled it will still drive borrowing costs higher. This morning, the Bank of Canada (BoC) announced the overnight rate will hold at 4.5%, surprising few. They did just announce a pause at the last meeting, so reversing course was unlikely. However, that doesn’t mean borrowing costs won’t […]
Canada’s largest bank believes the end of the real estate correction is within sight. That was the message in RBC’s latest housing brief, though that doesn’t mean price declines are over. The bank believes home prices are halfway to the bottom, and doesn’t anticipate a bounce until next year. However, they expect the market to […]
Canadians got a little relief after facing one of the most aggressive rate hikes in history. At the January meeting, the Bank of Canada (BoC) announced a “conditional pause” on further hikes. That leaves one big question that everyone is trying to figure out—what conditions could trigger further rate hikes? Bank of Canada Is Worried […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Real Estate Bubble Is Even Consuming Its Underground Economy One unfortunate consequence of a real estate bubble is the concentration of capital. As people spend more money on real estate, they have less to spend in other industries. This causes human […]
