Greater Toronto real estate sellers are learning a lot can change in just one month. Toronto Regional Real Estate Board (TRREB) data shows the median sale price dropped in May. The majority of cities across the board are now seeing price declines as rates normalize. The Median Sale Price of Greater Toronto Real Estate Fell […]
Told ya’ higher interest rates would lead to more Canadian real estate inventory. Canadian Real Estate Association (CREA) data shows existing-home sales dropped sharply in May. At the same time inventory has been climbing as more owners cash out some of those record gains. Falling sales and higher inventory has driven the market into balanced […]
Canadian real estate has had an easy climb over the past 30+ years, but that might be coming to an end. That was the take from BMO Capital Markets in a new research note. Recent mortgage borrowers will have to renew at much higher rates in the future. The estimated renewal increase will be the […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate’s Worst Case Is A 30% Price Drop, Still Down By 2027: RBC Canada’s largest bank is preparing for a big drop in home prices in a downturn. RBC’s worst case scenario for Canadian real estate is a 30% price […]
Canada borrowed debt so households didn’t have to, but they went ahead and borrowed anyway. Bank of Canada (BoC) data shows the share of highly indebted mortgage borrowers pushed to a new high in Q1 2022. These borrowers, with at least a 450% debt-to-income (DTI) ratio, now represent 1 in 4 mortgages. It sounds bad, […]
First-time home buyers are out and investors are in. That’s the takeaway from Bank of Canada (BoC) data showing the share of real estate investors in the market. Before 2020, investor demand for real estate was beginning to slow down. When rates were cut in 2020, it sparked a new wave of investor demand that […]
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 […]
Canada’s improvements in poverty proved to be more transitory than inflation. New survey data from Food Banks Canada (FBC) shows over a fifth of households have recently gone hungry. With inflation running higher than incomes, many households can’t easily absorb rising costs. FBC found more food bank users are citing high inflation and rising shelter […]
Fewer Canadians were taking out new mortgages, even before the rate hikes began. Mortgage origination data from TransUnion shows how originations fell sharply in Q4 2021. Not one province showed annual growth, with Ontario leading the way lower. As Canadian real estate prices climbed, fewer people were qualified to buy. This can act as friction […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada Quietly Changed Its First-Time Home Buyer Program To Limit Its Losses Canada is lowering taxpayer exposure to the First-Time Home Buyer Initiative. The program sees the government buy a share of your home, helping to drive payments lower. Canada would […]
