American credit will experience drag as inflation forces a monetary response. The US Federal Reserve announced it will double the rate it tapers its bond-buying next month. RBC economist Josh Nye has forecast the program will now end as early as March at this pace. This would be months ahead of schedule, with RBC seeing […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate The Bank Of Canada Only Sees 2 Real Estate Bubbles And Vancouver Isn’t One Of Them Global agencies are ringing the alarms, but Canada’s central bank only sees 2 bubbles. The HPEI, the Bank of Canada’s exuberance indicator, only flagged Hamilton […]
US real estate prices are looking frothy, according to central bank researchers. The US Federal Reserve (the Fed) recently updated its exuberance index for Q2 2021. The little-known index exists to identify housing bubbles early, to minimize damage. For the first time since 2007, that indicator is now warning that US real estate prices are […]
Canadian real estate buyers are getting more irrational, says the world’s biggest central bank. The US Federal Reserve (The Fed) published its Q2 2021 exuberance index recently. The index, considered a “smoking gun” for bubbles, shows Canada is well into a real estate bubble. Researchers say markets that become exuberant will experience a correction in […]
The US is signaling the end of easy money might be near. The Federal Open Market Committee (the Fed) announced a taper to quantitative ease (QE). The central bank plans to reduce asset purchases this month and the program could wind up by next summer. This will translate into more expensive credit and may pump […]
Canadian home prices just keep rising at a faster and faster rate. US Federal Reserve (The Fed) data shows real home prices in the country surged in Q2 2021. Actually, that’s really underselling what happened. Residential real estate prices in Canada are growing at the fastest rates in the G7. Not just over the past […]
Canadian real estate has long been frothy, but how does it look compared to other countries? According to the US Federal Reserve (the Fed) exuberance index in Q1 2021, pretty bad. Only two G7 countries are considered exuberant markets (a.k.a. bubbles) — Canada and Germany. Those two countries are also the longest-running bubbles of any […]
Either the Canadian real estate bubble is now a bubble on a bubble, or old enough it should be in school. The US Federal Reserve (the Fed) released its quarterly exuberance index for Q1 2021. The index, used to determine country-level housing bubbles, shows Canada is well into one. The unusual circumstances make it unclear […]
Global real estate prices are growing at the fastest rate ever, but it’s nothing like in Canada. US Federal Reserve data shows annual home price growth for advanced economies hit a record in the first quarter of 2021. So did Canada. The difference is Canada’s record growth is more than 3x as large as other […]
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 […]
