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 […]
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 […]
Canadians are about to see interest rates they didn’t think were possible in just a few days. BMO made revisions to its overnight rate forecasts this week. At next Wednesday’s meeting, they’re calling the largest rate hike in two decades. That will bring interest rates (and your borrowing costs) to the highest level since 2008. […]
Policymakers have been telling the public that a soft landing is still possible. However, virtually no one believes it, according to BMO Capital Markets. BMO chief economist Douglas Porter recently explained that market expectations are eroding. Yields and commodity prices are cratering against a backdrop of higher inflation. This isn’t typical unless serious doubts have […]
Canadian real estate has another indicator showing higher rates are tempering the market. A new analysis from BMO Capital Markets shows housing-related retail sales fell in April. They attribute this to higher rates, and see this as a direct follow up to falling real estate sales. Activity remains elevated but BMO sees things slowing further […]
Canadians should say good-bye to the 15-or-so year experiment with cheap debt, because it’s over. Government of Canada (GoC) 5-year bond yields continued to boom, accelerating this week. The yield now sits at the highest level since before the Great Recession and isn’t expected to slow down. Mortgage rates will see a big impact from […]
Canadian real estate prices are about to get downward pressure not seen in decades. Government of Canada (GoC) 5-year bond yields are soaring and it’ll have a big impact on housing, says BMO. In a research note to investors, they warn mortgage costs are rising towards a decade high. However, the level of mortgage rates […]
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 prices are the most overvalued in decades, but not all markets are equal. Earlier this week, we shared BMO data showing Canadian homes were 38% overvalued. Today we’re sharing a regional breakdown, showing where the widest trend deviations are. Most regions are overvalued, but nowhere is even close to Greater Toronto. Canadian […]
