Canada’s real estate bubble is finally beginning to unwind and everyone wants to know how low it goes. BMO Capital Markets tackled the subject for clients on the weekend, providing models and historical context. Rising interest rates are certain to cause a correction, as it purges excess leverage. Prices need to drop significantly just to […]
Canadian real estate prices have never been this overvalued, according to new analysis from BMO Capital Markets. In a research note to clients, the bank didn’t just explain home prices are overpriced. Since 2020, home prices have made the largest trend deviation in at least 40 years, and are likely to correct. Canadian Real Estate […]
Canada’s oldest bank joined the largest bank in making upward revisions to its rate forecast. BMO now sees the Bank of Canada (BoC) raising even faster than thought. Their economists see interest rates ending at slightly different levels next year. However, the near-term message was the same — expect much higher interest rates by this […]
Canadian real estate prices won’t correct due to population growth, right? Well, BMO Capital Markets shared a different take with institutions this morning. The bank explains there is no historical evidence to support this narrative. During the last significant home price crash, Canada saw its population grow at a faster rate. They warn interest rates […]
A big Canadian real estate brokerage upgraded its price forecast, despite rising rates. Royal LePage now sees home prices rising 15.0% in 2022, an upgrade from the 10.5% previously forecast. Similar gains are seen for Toronto (16.5%), Montreal (12.5%), and Vancouver (15.0%) real estate, as well. It’s a fairly big jump for home prices that […]
Canadian households were hit with the fastest rise in living expenses in over 3 decades. Statistics Canada (Stat Can) data shows the Consumer Price Index (CPI) annual growth for March was the highest in over 31 years. High crude oil prices have been the focus of most media attention, but the issue is much more […]
Canadian real estate’s epic run is starting to lose steam, according to one of the country’s Big Six banks. BMO wrote to clients to weigh in on the choppy data two major markets reported this week. National numbers won’t be available for a couple more weeks, but there are early signs of price discovery. Higher […]
Canadian mortgage rates are set to go vertical as bond yields surge higher. BMO Capital Markets explained to clients that mortgage rates will rise “straight up.” As central banks increase the intensity for their fight against inflation, yields are rising. The result is soaring mortgage rates, expected to climb even faster in the coming months. […]
Canada’s central bank is forecast to increase their fight against inflation. BMO Capital Markets released its latest forecast showing more aggressive rate hikes. They now see the Bank of Canada (BoC) hiking at double the previous forecast for at least two meetings. The accelerated hikes are just a part of the central bank’s battle to […]
Canada’s excessive low rate policy has created a wave of speculative housing demand. That demand can end very quickly, as interest rates climb and real estate price growth slows. In a weekend note to clients, BMO explains it’s a less than ideal time to expect home prices to grow. Rising rates won’t have much of […]
