Canadian real estate is increasingly flashing warnings after detaching from incomes. Sal Guatieri, a senior economist at BMO, found another one — home values as a percent of income. The indicator calculated by Statistics Canada (Stat Can) shows home prices climbing much faster than incomes. It almost looks like a plotting error, as homes continue […]
Canadians aren’t keen on the prospects of buying a home, according to a mortgage industry report. Mortgage Pros Canada (MPC), a trade association representing mortgage brokers, released its Semi-Annual State of The Mortgage Market. One of the key data points is a consumer survey used to gauge the public’s sentiment on the market. They found […]
Canadian real estate prices are unique due to how expensive it has become, but not when it comes to recent price growth. BMO chief economist Douglas Porter explained, once again, monetary policy drove prices higher. Central banks adopted “hyper-stimulative” policies to drive excess demand to push prices higher. To illustrate this, he contrasts Canada with […]
Canadian real estate prices might be in for a bit of a dip if one of the world’s leading forecasters is right. Oxford Economics’ latest forecast shows home prices falling 24% by mid-2024. Higher interest rates and anti-speculation policies are forecast to begin the price declines this fall. If these measures fail to correct prices […]
One of the biggest red flags for Canada’s real estate bubble is that banks have become prominent critics. BMO chief economist Douglas Porter reminded clients this isn’t a supply issue. The bank warned last year that price growth would accelerate without demand measures. Instead of taking that advice, policymakers doubled down on the supply narrative. […]
Canadian households briefly saw their debt issue shrink, but those days are long gone. According to Statistics Canada (Stat Can), the household debt to income ratio hit 186.23% in Q4 2021. The ratio had improved briefly as stores were closed and households paid down a little debt. The most recent update was massive though, reversing […]
Canadians are used to seeing their purchasing power vaporize, but not this fast. Statistics Canada (Stat Can) data shows annual growth for the consumer price index (CPI) hit 5.7% in February. The measure of inflation is at the highest level of growth since August 1991. Meanwhile shelter, one of the largest weights in the CPI […]
Canadians should prepare to pay a lot more to borrow for a mortgage, as easy credit comes to an end. The Government of Canada (GoC) 5-year bond yield reached 1.978% today, the highest level in well over a year. A booming economy and soaring inflation are driving yield expectations higher. As the GoC 5-year bond […]
Canadian real estate prices aren’t cooling against the threat of higher interest rates. Canadian Real Estate Association (CREA) data shows it did the opposite in February. Prices were already growing at a fast rate last year, and that rate has nearly doubled since. Loose policy disrupted the real estate cycle, pushing the market into uncharted […]
Canadian new vehicle sales picked up, but supply chain hiccups are hitting the market. Statistics Canada (Stat Can) reported 94,624 new vehicles sold in January 2022, up 15.3% from the previous year. The increase is huge, but it’s being compared to the slowest January since 2011. The second slowest was this past one, as the […]
