Fewer Canadians were taking out new mortgages, even before the rate hikes began. Mortgage origination data from TransUnion shows how originations fell sharply in Q4 2021. Not one province showed annual growth, with Ontario leading the way lower. As Canadian real estate prices climbed, fewer people were qualified to buy. This can act as friction […]
Canadian institutions are showing fading optimism, according to a new survey. The Bank of Canada (BoC) released the Spring 2022 results of its Financial System Survey (FSS). The FSS is a twice-yearly poll of risk managers, allowing the BoC to compare expectations to their own. Results from the survey show more institutions expect a financial […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada Quietly Changed Its First-Time Home Buyer Program To Limit Its Losses Canada is lowering taxpayer exposure to the First-Time Home Buyer Initiative. The program sees the government buy a share of your home, helping to drive payments lower. Canada would […]
Canada’s central bank reiterated its commitment to lower elevated inflation. The Bank of Canada (BoC) hiked the overnight rate and is going ahead with quantitative tightening (QT). It wasn’t much of a surprise, as it was widely expected by the market. What is surprising is the BoC raised its inflation forecast once again. This may […]
Canadian real estate got a shout out in a discussion between two prominent figures on Bay Street. Benjamin Reitzes, BMO’s managing director of macro strategy, and host of Views From The North podcast, mentioned double-digit drops for home prices in the not-so-distant future. Along with guest Joel Prussky, the two discussed how the past 15 […]
Canadian real estate is so bubbly a large bank sees prices soaring in a downturn. Scotiabank (BNS) reported earnings today, filing the bank’s macroeconomic forecasts. These forecast scenarios help to determine outlook, and include a base case, optimistic case, and two pessimistic ones. Even in the bank’s worst case scenario, they forecast home prices will […]
Canada’s economy is booming, and there’s a good chance you’re not feeling any of the benefits. A new study by Statistics Canada (Stat Can) on gross domestic product (GDP) per capita might shed some light on why. The agency found GDP recovered from the recession but not when measured on a per capita basis. Lingering […]
Canada’s real estate bubble is finally beginning to unwind and everyone wants to know how low it goes. BMO Capital Markets tackled the subject for clients on the weekend, providing models and historical context. Rising interest rates are certain to cause a correction, as it purges excess leverage. Prices need to drop significantly just to […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Prices 38% Overvalued, Largest Trend Deviation In 40 Years: BMO Canadian real estate hasn’t seen anything quite like the bubble it’s facing right now. Since 2020, the price of a typical home across Canada has increased a whopping […]
Canadian real estate faces several hurdles and those hurdles are about to rise. Bank of Canada (BoC) data shows outstanding mortgage credit climbed substantially in March. It was only the first month of rate hikes, but we’re already beginning to see activity relax. Growth is now off multi-year highs with rising rates and falling sales […]
