No need to worry about your local home builder’s profit margin — they’re actually rising. CoConstruct, who provides construction project management software to over 100,000 clients, took a dive into builder margins. Analyzing client data, they found home builder profit margins climbed in Canada and the US. Despite rising material costs, buyers have been willing […]
Canada’s economy is demonstrating it has no clue where to find growth if not through a housing mania. Statistics Canada (Stat Can) data shows the gross domestic product (GDP) advanced in Q1 2022. Nearly half of the quarter’s growth was due to residential investment, or homebuilding. Housing has produced such lofty gains, it’s become hard […]
Canadian new home starts are still strong but have begun to slow down from highs. Canada Mortgage and Housing Corporation (CMHC) data shows housing starts climbed in April. The rise in starts is based on seasonally adjusted month-to-month data, though. The number of new homes remains historically high but annual growth is tapering. Canadian New […]
Canadian future building construction intentions tapered as interest rates climbed, shows permit data. Statistics Canada (Stat Can) data shows the value of building permits, a leading indicator, made a small dive in March. Future building plans remain elevated compared to pre-2020. However, residential plans slowed as expected after record building activity. Canadian Building Permit Values […]
Canadian real estate developers are being squeezed by inflation, and it’s turning ugly. The Hazleton Development Corporation obtained Companies’ Creditor Arrangement Act (CCAA) protection on April 20, 2022. The developer cited rising costs as one of the primary issues putting a 265-home project at completion risk. In this particular case, costs rose less than typical […]
Canada’s latest budget sets ambitious housing supply targets, but it’s mostly hot air. BMO broke down the Federal government’s new supply measures for Capital Markets clients this morning. If possible, the plan in Budget 2022 to double home construction shows they still don’t understand inflation. Or Millennials, come to think of it. Though it doesn’t […]
Canadian real estate investors should pay close attention to a new rule in the budget. The Government of Canada (GoC) 2022 budget proposes to apply a sales tax to assignments for new homes. Hitting assignments with a sales tax will make reseller units much less attractive. If implemented, this can drastically change investor demand for […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices Expected To Drop 24%, Can Crash 40%: Oxford Economics Oxford Economics just warned clients that home prices are in for a correction. The global forecasting firm sees Canadian home prices falling 24% by mid-2024. Previously they expected a […]
Canada’s economy is leaning on real estate once again. Statistics Canada (Stat Can) data shows building construction investment hit $19.1 billion in January. Investment is 3.4% higher than a month before, and 12.0% higher than it was last year. There’s a bit of a catch though — the growth disappears once adjusted for inflation. It […]
Canada released the most Canadian look at COVID-19 deaths — by including real estate. Statistics Canada (Stat Can) studied age-adjusted COVID-19 mortality rates by housing type. The national stats agency found elevated mortality rates amongst those that live in high rise buildings. This was especially true for low income households, with one key exception. High […]
