Canada’s central bank is closer to ending the program that added rocket fuel to home prices. The Bank of Canada (BoC) announced it will taper its quantitative ease (QE) program. QE has been a major contributor to the flood of cheap cash that’s helped push home prices higher. As the program gets close to an […]
Canadian real estate prices are rising at a breakneck speed — even with slowing sales. The RPS House Price Index (HPI) made a huge leap in June for almost all markets. It didn’t matter where, even small towns have begun to outperform big cities. Let’s dive into the frothy month Canada just had. Canadian Home […]
Canadians have an epic pile of savings accumulating, but it’s not as big as most economists think. Oxford Economics‘ Tony Stillo took a deep dive into the household savings rate this week. The firm found the gross numbers exaggerate the total that can actually be used. Further, wealthier households represent more than half of the […]
The Canadian property bubble is at the point where it’s about to produce brain drain. At least in Ontario. Abacus Data conducted a survey on housing perceptions recently. The survey, commissioned by OREA, produced dozens of insights showing a public frustrated by a property bubble. Buried amongst those insights though was a big standout — […]
More adults are living with their parents, and it may be due to high home prices. The Royal LePage 2021 Boomer Survey (it’s a thing) found one in five Boomers have kids at home currently. Breaking that number down, over half of those are adults 25 and older. A significant number of these Boomers said […]
Lumber prices are still crashing, marking the ninth consecutive week of declines. The cost of the commodity has seen more than a quarter of its value fall in the past month. Since the peak price reached just over two months ago, prices are now down by more than half. As much as they’ve fallen, experts […]
Canada’s national statistics agency delivered another measurement pointing to a housing chill. Statistics Canada (Stat Can) data shows investment in building fell in May. The drop was due entirely to residential investment, which was cut from a record high. Even with the substantial cut, investment in home building is above historic levels. Though that can […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate The Canadian Property Bubble Can Start Deflating As Early As This Month The Canadian property bubble is starting to show signs of deflating last month. The 3-month annualized rate of growth for prices is falling in Toronto and Vancouver. Since this […]
Canada’s central bank has had researchers quietly studying bubbles overseas. The study, Bubbles, Crashes and Information Contagion In Large-Group Asset Market Experiments, appeared in the June issue of Experimental Economics. It was the centerfold issue, so obviously, I had to pick it up. In the study, Bank of Canada (BoC) researchers looked at the role […]
Canada’s largest bank now sees the US raising interest rates, and it’s a big positive for Canadian rate hikes. RBC senior economist Josh Nye said the bank sees the US hiking rates by next year. The hike will allow the Bank of Canada (BoC) to raise rates without a significant appreciation of the loonie. This […]
