Canadian real estate prices just made the largest monthly drop ever in the history of the Teranet-National Bank House Price Index.
Canadian real estate affordability is getting worse as the market adjusts to higher rates. A Bank of Canada (BoC) update to its Housing Affordability Index (HAI) shows a sharp climb in Q2 2022. An average household now requires nearly half their income to service a mortgage. It’s a level rarely seen in Canada, and experts […]
This week’s top stories include two “Big Six” banks sharing a worsening outlook for Canadian real estate and Toronto prices plummeting.
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 inflation continues to rocket higher as rate hikes occur at a snail’s pace. The Bank of Canada (BoC) policy rate still isn’t at the level seen at the start of 2020, but annual growth of the consumer price index (CPI) reached 7.7% in May, the highest level since 1983. However, BMO Capital Markets urges […]
Canadian real estate has another indicator showing higher rates are tempering the market. A new analysis from BMO Capital Markets shows housing-related retail sales fell in April. They attribute this to higher rates, and see this as a direct follow up to falling real estate sales. Activity remains elevated but BMO sees things slowing further […]
Canada’s soaring real estate prices pushed mortgage payments much higher. Equifax data shows the average mortgage payment only got a small break from low rates. Shortly after, the stimulus helped to drive home prices even higher. However, the average payment obligation is still low, since the majority bought at almost half of today’s price. Canada’s […]
Canada’s economy is booming, and there’s a good chance you’re not feeling any of the benefits. A new study by Statistics Canada (Stat Can) on gross domestic product (GDP) per capita might shed some light on why. The agency found GDP recovered from the recession but not when measured on a per capita basis. Lingering […]
Canada’s central bank said they would “forcefully” control inflation last month. In the first rate announcement since that statement, the Bank of Canada (BoC) took the first steps of following through. To curb “excess demand,” the central bank raised rates aggressively and even set a date to begin reversing its QE program. Canada’s Overnight Rate […]
Vancouver real estate just had a little froth shaved off last month. Real Estate Board of Greater Vancouver (REBGV) data shows home prices jumped in March. Diving deeper, the benchmark climbed but median sale prices fell in the City. Mixed price indicators came as the hot market also showed signs of weakness. While inventory is […]