Canadian real estate prices are the most overvalued in decades, but not all markets are equal. Earlier this week, we shared BMO data showing Canadian homes were 38% overvalued. Today we’re sharing a regional breakdown, showing where the widest trend deviations are. Most regions are overvalued, but nowhere is even close to Greater Toronto. Canadian […]
Canadian real estate is so bubbly a large bank sees prices soaring in a downturn. Scotiabank (BNS) reported earnings today, filing the bank’s macroeconomic forecasts. These forecast scenarios help to determine outlook, and include a base case, optimistic case, and two pessimistic ones. Even in the bank’s worst case scenario, they forecast home prices will […]
Canada’s real estate bubble is finally beginning to unwind and everyone wants to know how low it goes. BMO Capital Markets tackled the subject for clients on the weekend, providing models and historical context. Rising interest rates are certain to cause a correction, as it purges excess leverage. Prices need to drop significantly just to […]
Canadian real estate prices have never been this overvalued, according to new analysis from BMO Capital Markets. In a research note to clients, the bank didn’t just explain home prices are overpriced. Since 2020, home prices have made the largest trend deviation in at least 40 years, and are likely to correct. Canadian Real Estate […]
Just how big is Canada’s real estate bubble? Canadians, especially in the real estate industry, are already warning rate hikes are damaging the economy. While large price drops sound scary, no one had realized how scary large price gains had become. A typical home can drop the equivalent of a median household’s income, and only […]
Intel just confirmed, Canadian real estate is a haven for money laundering and fraud. Criminal Intelligence Service Canada (CISC), a national intelligence agency, quietly produced an anti-money laundering report in 2020. The report focuses on the scope and extent of money laundering in Canada. The agency found real estate was used extensively as a tool […]
Greater Vancouver real estate is adjusting to a world with higher rates very quickly. Real Estate Board of Greater Vancouver (REBGV) data shows home sales fell sharply in April. They even fell faster than inventory, actually releasing pressure on prices to rise. Home prices are seeing growth decelerate fast as the region enters a “balanced […]
Canadians are doing something uncharacteristic — they’ve slowed borrowing mortgage debt. Bank of Canada (BoC) data shows a big slowdown in new funds advanced for residential mortgages for February. A small seasonal monthly climb was present, but even so it was an oddly slow month. The past couple months look more like the slowdown of […]
Canadian real estate is significantly overvalued, according to a giant institutional intelligence firm. Moody’s Analytics’ released their Q4 2021 assessment of home price valuation. They found home prices have continued to rise above trend, indicating overvaluation. Cities are now up to 108% overvalued, a problem particularly bad in Southern Ontario. Canadian Real Estate Is 23% […]
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 […]
