Canadian households are now so indebted, it exceeds the annual output of the economy. Statistics Canada (Stat Can) data shows the gross domestic product (GDP) printed modest quarterly growth in Q2 2021. The growth was dwarfed by household debt, which now exceeds the size of the country’s GDP. Economies with such large household debt loads […]
Canadians are about to see a flood of housing supply like they’ve never seen before. An RBC analysis found multi-year highs for various stages of new home construction in Q2 2021. New housing starts reached the highest level in over three decades. Homes completed are expected to hit a similar multi-decade high in the next […]
Canadian bond yields have been sliding for the past few weeks, but that changed pretty fast. Global bond yields surged on Thursday after central banks expressed hawkish views overnight. By communicating their intention to ease stimulus, an abrupt market change occurred. Long-term yields have now climbed to the highest level in months. Experts say this […]
Canada plans to increase credit access for the country’s riskiest borrowers in the years to come. A re-elected government may not seem like change, but they promised a big one — larger insured mortgages. High-ratio borrowers will see an increase of up to 25% of their maximum mortgage size. Expansion of credit during a low […]
The Canadian election is over and the country’s leadership remains largely unchanged. However, a laundry list of election promises mean big changes to real estate are coming. Most of the promised plan seeks to create more demand for housing, which softens price drops. Expect more of the same currently being done, but with a revamped […]
Canadian real estate is expected to be slow for the rest of this year, but it won’t last very long. The Canadian Real Estate Association (CREA) shared their 2021 forecast. In the forecast for this year, they see minimal movement from the current average sale price. Next year they see huge gains returning, especially in […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Households Spend More Income On Debt Than Any Other G7 Country: BIS Canadians devote much more income to debt payments than their G7 peers. Households in the country had an average debt service ratio (DSR) of 12.4% of income in Q4 […]
Canada’s red hot real estate market continued to cool, according to new numbers from the industry. Canadian Real Estate Association (CREA) data shows the seasonally adjusted sales to new listings ratio (SNLR) fell in August. The relative measure of demand is one of the core indicators used to determine how tight the market is. Since […]
Canadian real estate saw the fewest home sales in over a year, as the market continues to cool. Canadian Real Estate Association (CREA) data shows existing-home sales fell in August. Despite falling, the month printed the second biggest number ever. Sales are also still much higher than normal. That said, it was a very sharp […]
Canadian housing supply plays a role in home price growth, but doesn’t explain all of it. The Bank of Canada (BoC) published a paper on Canadian Housing Supply Elasticities. In it the researchers explain supply plays a big role, but not to the extent we’ve seen. Over the short-term, it fails to explain the extreme […]
