Canadian real estate is entering one of its most precarious phases in history. Households will navigate it without the help of the national housing agency, though. The Canada Mortgage and Housing Corporation (CMHC) has halted its Housing Market Assessment (HMA) report. The regular report provided the public with insights on housing market imbalances. The cancellation […]
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 […]
Most Canadian businesses now expect significantly higher than usual inflation. The Bank of Canada (BoC) Business Outlook Survey for Q1 2022 was released today. One of the key insights is business inflation expectations, which show future sentiment. The survey found a record share of businesses see elevated inflation for at least two more years. […]
Canadian building intentions surged higher as the economy became more dependent on construction. Statistics Canada (Stat Can) data shows building permits surged higher in February. The optimistic rise for the industry is still mostly for the construction of new housing. However, a big (but temporary) boost resulted from rising government spending as well. Canadian Building […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Is About To Experience A “Full-Scale Attack,” Warns Big Six Bank Canada’s oldest bank warned investors of a “full-scale attack” on real estate this week. Climbing mortgage interest costs are just the start. Foreign buyer taxes, vacancy taxes, and […]
Canada’s largest bank is accelerating its forecast for higher interest rates. RBC sees the Bank of Canada (BoC) doubling the overnight rate at the April meeting. The bank is also accelerating its forecast, seeing a sharp and fast tightening cycle. By year end, they expect the overnight rate to hit the highest level in over […]
Canadian businesses are optimistic about the future, but inflation and wage headwinds are brewing. The CFIB small business confidence survey showed improving confidence in March 2022. It also reveals their expectations of high inflation are rising further. Despite higher inflation, businesses have lower expectations for future wages, a toxic combination. Canadian Small Business Confidence Gets […]
Canadian mortgages are getting a lot more expensive as bond yields surge higher. The benchmark Government of Canada (GoC) bonds are climbing, influencing fixed-term mortgage costs. Canada hasn’t seen this kind of pressure on bond yields since the 90s, at the peak of the last tightening cycle. This cycle, however, is just getting started. Expect […]
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 getting serious about controlling high inflation… that they had said was out of their control. The Bank of Canada (BoC) spent the past year claiming high inflation is due to external factors. A day after we explained to Parliament’s finance committee how monetary tools were used to create inflation, the BoC […]
