Overstimulated Canadian real estate buyers are no longer opting for variable rate mortgages. Bank of Canada (BoC) data shows mortgage borrowers preferred fixed rates in October. Most new borrowers had been opting for variable terms at the start of the year. That trend is rapidly shifting as rates normalize and fixed rates become cheaper. Canadian […]
Canadian real estate markets went from boom to crash in less than a year. Canadian Real Estate Association (CREA) data shows every major composite index was down from its peak in November. Over a dozen of Canada’s real estate markets have even “crashed” as a sharp mix of reality and higher interest rates sink in. […]
Canadian real estate has never exactly been cheap, but it’s rarely this unaffordable. The Bank of Canada (BoC) Housing Affordability Index (HAI) hit a 32-year high in Q3 2022. That means it’s nearly impossible for an average household to buy a home right across the country. The cost of housing has breached an unsustainable level […]
Canada’s real estate downturn will continue next year, warns a credit rating giant. Fitch Ratings released its 2023 forecast calling even lower home prices next year. After 3-decades of strong price growth without correction, affordability has never been worse. When combined with high rates, weak demand is expected in the near-term as home prices adjust. […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Real Estate Bubble Is Now The Largest Ever, Correction Needed: RBC Canadian real estate is in its biggest bubble ever, and RBC sees falling prices fixing it. The bank estimates a median household buying would need to spend 67% of its […]
Canadian mortgage debt is slowing, but it’s way past the point of becoming a problem. Bank of Canada (BoC) data shows outstanding mortgage credit slowed in October 2022. However, slow growth is still growth—households now owe the equivalent of the country’s economic output. At this level, debt will pile up much faster than GDP grows, […]
Canada’s vast choice of unfilled jobs is quickly disappearing as the economy begins to tighten. Statistics Canada (Stat Can) data shows the number of job vacancies made a sharp decline in October 2022. That’s good news for moderating inflation as economic slack is absorbed, but also indicates we’re past peak growth and heading towards recession. […]
Canadians are still dumping expensive provinces for, well, less expensive ones. Statistics Canada (Stat Can) released its latest interprovincial migration estimates for Q3 2022. The biggest losers of residents to other provinces were BC and Ontario, the former printing its first net outflows in nearly a decade. The biggest winners were Alberta and Nova Scotia, […]
Canadian real estate is in the largest bubble the county has ever experienced. RBC warns that housing affordability has eroded right across the country in November. In a research note to investors, the bank explains it’s now even harder to buy a home than during the 1980s bubble. A correction is now required to stabilize […]
Canada’s overstimulated economy is experiencing withdrawal from the end of low rates. Oxford Economics‘ warned investors the country is already in recession. It’s expected to spend most of 2023 in recession, and will be hit harder than its G7 peers. Highly indebted households and overpriced real estate shouldn’t expect much relief either. Elevated inflation will […]
