Canada’s inflation data came in lower than expected, but still advanced to a new high. The June Consumer Price Index (CPI) from Statistics Canada (Stat Can) showed the highest annual growth since 1983. It was less than the market expected but still accelerating and way above target. Experts see the elevated inflation requiring a contraction […]
Canadian real estate suddenly had a shortage of supply after record low rates. Not in major boomtowns, but in small cities and rural municipalities. Canada had the biggest boom, but this was seen in almost every advanced economy. Right after rates were slashed to stimulate demand, everywhere had a sudden shortage. BMO Capital Market economists […]
Canadian real estate has long been a safe place for global investors to park cash. Low scrutiny, few barriers, and little to no data collection on ownership, made it ideal. Statistics Canada (Stat Can) non-resident owner data from the Canadian Housing Statistics Program (CHSP) shows just how popular it was in 2020. The program, mostly […]
Construction of new housing supply suffered a mild setback, but remains historically elevated. Canada Mortgage and Housing Corporation (CMHC) data shows new home starts fell in June. The drop was only slight, with the number of units still much higher than anything seen in the 2000s or 2010s. Big cities like Toronto and Vancouver even […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate The Canadian Real Estate Bubble Was Just Delivered Its Final Blow: BMO Canadian real estate costs just blew past the 80s bubble when it comes to payments. BMO estimates the average home in Ontario required $3,000/month in payments to carry the mortgage. […]
Earlier this year, Canada’s largest bank forecasted low home price growth. However, RBC warned risk was slanted to the downside which is now here. In the bank’s commentary on existing-home sales, they found the correction is spreading. As a result, the bank now expects prices to fall across the country over the next few months. […]
Few would believe it just a few weeks ago, but Canadian real estate is falling as fast as it climbed. Canadian Real Estate Association (CREA) data shows benchmark prices fell in June. The benchmark, a typical home, actually declined by an average of nearly $1,000 per day last month. Almost all 2022 gains have been […]
One of Canada’s largest banks is calling the housing market’s time of death — 10am Wednesday July 13, 2022. That’s basically the message from a BMO Capital Markets note to investors on Friday morning. Canadian housing affordability was already stretched to the limit, requiring price cuts to keep moving . Add this week’s rate hike, […]
Canadian interest rates are surging and that brings up a lot of questions about those with variable mortgage rates. Bank of Canada (BoC) data shows most new borrowers were opting for variable rate mortgages in May. However, the share has been falling from the record peak sparked by the central bank’s lag to keep up […]
Canadian real estate prices are falling about as fast as they climbed earlier this year. BMO Capital Markets long maintained Canada didn’t have a housing shortage but an excess of exuberance. As price gains slow, they are proven right as more people now expect prices to fall instead of rise. Following today’s rate hike, the […]
