Canadian real estate exuberance is quickly cooling, but still above critical levels. The US Federal Reserve’s Reserve Bank of Dallas has published their quarterly update on global real estate exuberance. Canada’s numbers show buyer exuberance is down to a multi-year low, but is still very much exuberant. The Exuberance Index The exuberance index is the […]
Declines in Canadian real estate sales is really putting a drag on debt growth. Numbers from the Bank of Canada (BoC) show Canadian banks held a record amount of mortgage debt in Q3 2018. However, the record amount of mortgage credit is growing at the slowest pace in years. Canadian Banks Hold Over $1.25 Trillion […]
Canadian homeowners might find themself with less home equity accrued than planned. Bank of Canada (BoC) data shows a significant climb for variable rate mortgages in January. The rise in rates can leave existing borrowers paying more interest, and a lot less to principal. Variable Rate Mortgages Variable rate mortgages are when the interest rate […]
Canadian households face higher borrowing costs, despite the lack of policy rate hike. Bank of Canada (BoC) numbers show the weekly effective interest rate for households reached an almost 10 year high. The increase comes after the effective rate had stalled for six weeks. Household Effective Interest Rate The household effective interest rate is a […]
Time for your weekly cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Sales Fell Over 11% In 2018, Biggest Drop Since 2008 Canadian real estate sales made a big drop last year, and that’s going to have consequences for the economy. Just 458,442 sales went through the MLS in […]
The growth rate of Canada’s money supply improved, but still points to a significantly slower economy. Bank of Canada (BoC) numbers show the M1+ growth rate improved in November. The slight improvement is dwarfed by the fact that the annual rate of growth is still a third lower than last year. The M1+ The BoC […]
Canadian real estate sales cooled last year – by a lot. Canadian Real Estate Association (CREA) numbers show 2018’s sales were the slowest in years. In fact, Canadian home sales made one of the largest declines in a decade. Despite the fact that your Realtor may have shifted to “there’s no national market” mode, there’s […]
Senior Canadians tapping their home equity is slowing, but still showing massive growth. Office of the Superintendent of Financial Institutions (OSFI) filings show outstanding reverse mortgage credit hit a new high in November. The annual pace of growth of outstanding credit was slower than last year, but still remains above 30%. Reverse Mortgages Reverse mortgages […]
Canadians took a break from borrowing home equity, but are back in full force. Office of the Superintendent of Financial Institutions (OSFI) filings show home equity borrowing reached a new record high in November. The month was also the fifth consecutive we’ve seen acceleration of growth in this segment. Loans Secured By Residential Real Estate […]
Canadian real estate listings are facing more competition, and less sales. Canadian Real Estate Association (CREA) numbers show the sales to new listings ratio (SNLR) fell across the country in December. The indicator, used as a proxy for demand, showed deterioration in all but 3 major markets. Sales To New Listings Ratio The sales to […]
