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 […]
Canada’s Middle Class is seeing its shot at homeownership vaporize, but it wasn’t always this way. Not just in expensive cities where lofty expectations pushed ownership out of reach for all except high-income households. But now most cities across Canada are out of reach for the country’s Middle Class. A median household now needs to […]
You did it! You convinced your parents to gamble their retirement by pitching you a downpayment. Now all you need is to qualify to carry a mortgage, right? That might be a problem according to Q1 2022 data from National Bank of Canada (NBF). Carrying a mortgage on a typical home now requires a minimum […]
Canadian real estate is so bubbly a large bank sees prices soaring in a downturn. Scotiabank (BNS) reported earnings today, filing the bank’s macroeconomic forecasts. These forecast scenarios help to determine outlook, and include a base case, optimistic case, and two pessimistic ones. Even in the bank’s worst case scenario, they forecast home prices will […]
Canada’s economy is booming, and there’s a good chance you’re not feeling any of the benefits. A new study by Statistics Canada (Stat Can) on gross domestic product (GDP) per capita might shed some light on why. The agency found GDP recovered from the recession but not when measured on a per capita basis. Lingering […]
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 […]
You did it! Your household earns the median income for Canada, and you convinced your boss to work from home. Now you just need to find a home you can afford, in the second largest country in the world. Easier said than done. Don’t worry, we got you. We hope you like small and remote […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Prices 38% Overvalued, Largest Trend Deviation In 40 Years: BMO Canadian real estate hasn’t seen anything quite like the bubble it’s facing right now. Since 2020, the price of a typical home across Canada has increased a whopping […]
Canadian real estate is quickly changing as inflation drives bond yields much higher. First National, one of Canada’s largest non-bank mortgage lenders, warned rates are surging. Neil Silverberg, a senior analyst with the lender, wrote to clients explaining how fast yields have increased and how this will impact ownership. More Canadians are expected to stay […]
Canadians are tapping that windfall of home equity and are ready to pay a lot of interest to do so. Filings with the bank regulator show home equity line of credit (HELOC) debt increased in March. It’s now growing at the fastest rate since 2013, after contracting over the past few years. The debt is […]
