Canadian real estate buyers are getting more irrational, says the world’s biggest central bank. The US Federal Reserve (The Fed) published its Q2 2021 exuberance index recently. The index, considered a “smoking gun” for bubbles, shows Canada is well into a real estate bubble. Researchers say markets that become exuberant will experience a correction in […]
Canada’s new top dog at the bank regulator wants you to know they’re taking housing risks seriously. Office of the Superintendent of Financial Institutions (OSFI) Superintendent Peter Routledge discussed their housing priorities this week. In a speech to Vancouver CFAs, he said the financial system is safe but will get more regulations to keep it […]
Great news! The odds of a housing correction are soaring and people might lose a lot of cash — but the banks will be fine. That was a key takeaway from Bank of Canada (BoC) deputy governor Paul Beaudry today. Seriously. In a speech to the OSC, the central bank warned Canadian real estate has […]
Canadian financial institutions increasingly see the financial system as risk-free. That might be a risk itself. The Bank of Canada (BoC) completed its biannual Financial System Survey (FSS) this week. It found institutions are buying “riskier” assets to make up for low interest rates. Risk managers see the risk as low, believing the financial system […]
Soaring Canadian mortgage debt might finally be showing some signs of cooling. Bank of Canada (BoC) data shows outstanding mortgage credit hit a high in September. Annual growth is now rising at one of the fastest rates in over a decade. However, the pace of borrowing is falling very quickly. This might be a sign […]
Time for your weekly cheat sheet on this week’s top stories. Canadian Real Estate Canada Goes All-In On Real Estate With “Excess” Home Sales Hitting 6% Of GDP: BMO Canada went all in on home sales to the point where excess home sales are now 6% of its GDP. Existing-home sales reached $500 billion in […]
Are Canadian investors beginning to think real estate returns are a little stretched? Statistics Canada (Stat Can) data on net investment in foreign securities shows big growth for September. Investors have accelerated sending funds out of the country — primarily into US investments. At the same time dollar volumes for Canadian real estate investment have […]
Canada’s inflation problem is getting worse, as the latest reading jumped to a multi-year high. The Consumer Price Index (CPI) ripped higher in October, according to Statistics Canada (Stat Can). Annual growth reached an 18-year high in the latest data, though you’d be lucky if your expenses increased by only that much. The majority of […]
Canadian real estate prices are soaring due to demand, but how much of it is excess? That’s a question BMO tackled in its latest research note, looking at home sale dollar volumes. The bank estimates excess demand driven by the central bank is now the size of 6 points of gross domestic product (GDP). Remember, […]
Still think the Canadian economy isn’t ready for a rate hike? A new analysis from BMO helps to make a convincing argument otherwise. The Bank of Canada (BoC) last hiked the overnight rate when unemployment fell to the current rate. That was back in 2017, when the country’s interest rates were also double the current […]
