Canada’s oldest bank is doubling down on its claim the housing supply shortage is a myth. BMO Capital Markets wrote to clients on Thursday morning with another data point — completions compared to household formations. The bank’s analysis argues housing completions have outpaced household formations for two decades. However, easy credit and wave after wave […]
Canadian real estate suddenly had a shortage of supply after record low rates. Not in major boomtowns, but in small cities and rural municipalities. Canada had the biggest boom, but this was seen in almost every advanced economy. Right after rates were slashed to stimulate demand, everywhere had a sudden shortage. BMO Capital Market economists […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate The Canadian Real Estate Bubble Was Just Delivered Its Final Blow: BMO Canadian real estate costs just blew past the 80s bubble when it comes to payments. BMO estimates the average home in Ontario required $3,000/month in payments to carry the mortgage. […]
Earlier this year, Canada’s largest bank forecasted low home price growth. However, RBC warned risk was slanted to the downside which is now here. In the bank’s commentary on existing-home sales, they found the correction is spreading. As a result, the bank now expects prices to fall across the country over the next few months. […]
One of Canada’s largest banks is calling the housing market’s time of death — 10am Wednesday July 13, 2022. That’s basically the message from a BMO Capital Markets note to investors on Friday morning. Canadian housing affordability was already stretched to the limit, requiring price cuts to keep moving . Add this week’s rate hike, […]
Canadian interest rates are surging and that brings up a lot of questions about those with variable mortgage rates. Bank of Canada (BoC) data shows most new borrowers were opting for variable rate mortgages in May. However, the share has been falling from the record peak sparked by the central bank’s lag to keep up […]
Canadian real estate prices are falling about as fast as they climbed earlier this year. BMO Capital Markets long maintained Canada didn’t have a housing shortage but an excess of exuberance. As price gains slow, they are proven right as more people now expect prices to fall instead of rise. Following today’s rate hike, the […]
Canada’s economy got a bit of a surprise this morning — a massive rate hike. Analysts expected the Bank of Canada (BoC) to make a big move, just not the biggest in over 20 years. The central bank is hoping to temper inflation expectations by showing they’ll do whatever it takes. Canadians now face the […]
Global Real Estate Pandemic Real Estate Boom Due To Cheap Debt, Not Lack of Supply: US Federal Reserve It’s the credit, stupid. That’s basically the conclusion from a US Federal Reserve Board staff paper. The paper examined the price levers that have made home prices move, both from a supply and demand angle. Paying special […]
It’s the credit, stupid. That’s basically the conclusion from a US Federal Reserve Board staff paper. The paper, Volatility in Home Sales and Prices: Supply or Demand?, examined price levers. It paid special attention to the recent home price surge during the pandemic. The ultimate conclusion is stimulated demand was responsible for the surge, not […]
