Canada is rolling out new policies to help its highly indebted households support soft demand for new housing. Earlier today, the Government of Canada (GoC) announced new measures to increase the amount of capital used to buy new homes. New home sales have been weak at these prices, and rather than letting prices fall, it […]
Canadians expecting good news for mortgage rates just got the exact opposite. The Bank of Canada (BoC) made no changes to the overnight rate, as expected by the market. While no cuts were expected, it was still widely believed they would reassure the market of progress on inflation, helping to reinforce expectations of rate cuts […]
Canada’s debt-crazed households finally met their match—interest rates higher than inflation. Bank of Canada (BoC) data shows residential mortgage credit slowed even further in Q4 2023. The unusually slow quarter revealed households accumulated mortgage debt at one of the slowest rates ever, as interest rates divert capital to areas outside of housing. Canadian Mortgage Debt […]
The Canadian and US economy are diverging from their typically similar performance. A new research note from BMO warns Canada’s economy is seriously underperforming in contrast to the US, especially when it comes to labor and inflation. This widening divergence likely means Canada will enter a recession and cut rates before the US, where its […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Buying A House In Canada Has Never Been Harder, Years To Correct: RBC Canada’s largest bank warns it’s never been more difficult to buy a home in the country. RBC warns a median household would need to spend up to 108% of […]
The only growth more impressive than Canada’s population is its surging unemployment. Statistics Canada (Stat Can) data shows the economy stumbled in March. It was such a minor decline, it wouldn’t be worth noting if not for the population growth. The country only lost a couple thousand jobs, but managed to add tens of thousands […]
Canada’s national housing agency is forecasting things are going to get worse in the next few years. The CMHC’s latest forecast expects a booming population and lower rates driving housing demand. As a result of the surging activity, existing home prices are expected to rise over the next couple of years. Despite soaring demand and […]
Think lower rates are the path to affordable housing? The US Federal Reserve (the Fed) believes you may have been grossly misinformed on that narrative. New research from the Dallas branch the Fed tackles the impact of interest rates on housing affordability. They warn the common belief that lower rates improve affordability is based on […]
Last month provided more evidence that Canadian real estate markets are credit driven. Toronto Regional Real Estate Board (TRREB) data shows home prices made a massive jump in March. Was it fewer listings and strong sales that drove a typical home’s price almost $20k higher in a single month? Nope, it was just good old […]
Canada’s largest bank is warning that housing has never been less affordable. New data from RBC shows housing affordability is now the worst it has ever been as of Q4 2023. Income failed to keep up with mortgage payments, resulting in affordability erosion in every market they track. Forecast interest rate cuts are expected to […]
