Canada’s attempt to use immigration as stimulus might be backfiring. That was the message from a new BMO report, looking at the unusually high unemployment rate for recent immigrants. The labor market for recent immigrants is eroding much faster than it is for the rest of Canada—at a rate rarely seen outside of recession. The […]
Canadian real estate markets hit pause, with the theory being rate cuts would revive the market. That theory is playing out for sellers, but one of Canada’s banks doesn’t see it driving many new buyers. A new analysis from BMO argues the Bank of Canada (BoC) rate cut may boost sentiment, but won’t provide much […]
The Canadian economy surprised with huge job gains last week. Statistics Canada (Stat Can) data shows tens-of-thousands of jobs were added in April. Despite a near-record gain, BMO warned investors the market isn’t as healthy as it sounds. Canada’s booming population growth meant the job gains failed to meet minimum requirements. As a result, the […]
Canada dropped some new real estate demand stimulus, in the name of improved affordability. Last week, the Government of Canada (GoC) announced they’ll be extending amortizations for first-time buyers in certain circumstances. There are concerns this will pour gas on the speculative fire that was finally starting to fizzle out. BMO disagrees with that take, […]
The Canadian and US economy are diverging from their typically similar performance. A new research note from BMO warns Canada’s economy is seriously underperforming in contrast to the US, especially when it comes to labor and inflation. This widening divergence likely means Canada will enter a recession and cut rates before the US, where its […]
Canadian real estate sales are getting weaker and inventory is rising, but don’t let that get in the way of a solid narrative. Canadian Real Estate Association (CREA) data shows existing home sales fell in February. The same day also shows new listings climbing, essentially producing fundamentals that indicate a weaker market. That didn’t have […]
The Canadian and US economies are tightly integrated, and tend to provide similar data for their central banks to move together. That’s no longer the case, as Canada’s economy grinds to a halt and inflation spirals back towards target. Meanwhile, the US economy continues to outperform expectations. Will economic divergence result in diverging monetary policy? […]
Canadian real estate markets are seeing activity pick up, but don’t read too much into it. That was the general take from BMO, responding to CREA existing home data for January. Home sales picked up substantially, but the bank warns activity is rising from unusually low levels and winter data is volatile. In addition, the […]
Canadian real estate markets have been warming up with dreams of cheaper mortgages. Despite the Bank of Canada (BoC) making no changes yesterday, they may have changed expectations. In a note to investors, BMO explained the central bank’s messaging demonstrates cuts are a long way off, potentially backstopping progress made on fixed rates. The bank […]
Cheaper financing and talk of the end of rate hikes improved markets across the country. Canadian Real Estate Association (CREA) data shows rising home sales in December. Diving into the data revealed a much more mixed picture though, with perceived improvements masking further erosion from last year. The conditions have economists at BMO warning investors […]
