Canadian real estate prices are back to climbing aggressively just over a year after the correction began. Canadian Real Estate Association (CREA) data shows the price of a composite benchmark, or typical, home surged in April 2023. The unusually large increase observed also happens to be similar in size to increased leverage from falling mortgage […]
Canada’s real estate correction may already be over, as prices return to sharp growth. BMO Capital Markets wrote to investors this week to explain they see higher home prices in the near-term. The bank observed that shortly after the Bank of Canada (BoC) warned of no further rate hikes, buyers returned with bigger budgets and […]
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 […]
Canada’s rising bond yields are set to drive mortgage rates higher, as fears of a recession are put aside. The Government of Canada (GoC) 5-year bond yield hit a new multi-month high on Friday. Yields have suddenly reversed course, as economic data has been coming in much hotter than expected. Canada’s oldest bank sees this […]
Canadian employment data didn’t get the memo that higher rates are ruining the economy. Statistics Canada (Stat Can) released the January Labour Force Survey today. Employment is soaring, and showing few signs of slowing—Toronto and Vancouver being minor exceptions. The boom is likely to present concerns for the central bank, which had been expecting the […]
Canada’s economy is still cranking out growth, but the details aren’t encouraging. Statistics Canada (Stat Can) data shows higher-than-expected gross domestic product (GDP) growth in November. It was positive news, but economists remain cautious and warn that consumers are weakening. GDP growth couldn’t even match the robust population growth, reinforcing slowdown concerns. Canada’s Economy Is […]
Canadian markets have begun discussing rate cuts, and that’s a reason we might not see one this year. BMO Capital Markets wrote to investors over the weekend, outlining their expectations for a rate hike this week. Their forecast currently sees the Bank of Canada (BoC) hitting pause after the next hike, but they warn it […]
Despite the gloomy outlook, Canada is still churning out hot employment data. Statistics Canada (Stat Can) data shows the economy added over 100,000 jobs in December. Along with higher participation, this helped drive the unemployment rate within spitting distance of the record. At least one Big Six bank sees another rate hike, with robust job […]
Canada is seeing new housing starts begin to fizzle, with November’s growth largely flat. It might present a concern for many, but BMO Capital Markets explained it shouldn’t. In the bank’s latest research note, they argue new housing starts are still very high. A record number of new homes are under construction, and a lot […]
Canadians believe interest rates will fall soon, and it’s now obvious in real estate. That’s the take from BMO Capital Markets, who sees this having unintended consequences. In a weekend research piece, they explain more investors are holding out for rate cuts. This will lead to maintaining lofty growth expectations and sticky inflation, making cuts […]
