Canada’s largest bank sees the real estate market cooling down soon, especially for new homes. RBC Economics has forecast a sharp decline in new housing starts. The “Big Six” bank expects new building to slow down in the second quarter of this year, and taper into Q3 2022. This will result in a sharp fall […]
Rising home prices across Canada have increased so much, many homeowners can’t afford to sell. Zillow Canada commissioned a new survey via Ipsos on buying and selling real estate. Buried amongst the usual insights on things like affordability was an unusual insight for sellers. A quarter of homeowners ready to sell haven’t listed, because they […]
The economic cliff many are worried about when pandemic support is withdrawn may not be so bad. That’s the take from National Bank of Canada (NBC) economists Matthieu Arseneau and Alexandra Ducharme. The “big six” economists crunched the numbers on disposable income, minus pandemic support. Disposable income has already resumed the pre-pandemic growth trendline. Throw […]
Canadian new home prices are on a tear, as high demand meets higher material costs. Statistics Canada (Stat Can) data shows new home prices advanced sharply in May. The annual rate of price growth is now at the highest level since 2006. That makes it one of the fastest annual rates of growth in history. […]
Canadian real estate markets are seeing a shift from peak activity earlier this year. Canadian Real Estate Association (CREA) data shows the sales to new listings ratio (SNLR) fell in May. This is the fourth consecutive month the ratio has fallen since reaching a peak in January. While the SNLR is still high, buyers are […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate The Canadian Property Bubble Reaches Contagion, Making A Financial Crisis Likely The Canadian property bubble reached the contagion phase, spreading to other areas. Real estate bubbles often spread from the city center to the suburbs. Investors move to regions with cheaper prices, […]
Prices just outside of frothy Canadian real estate markets are growing much faster than in the city. That’s typical of a bubble, and it’s called “housing bubble contagion.” In a paper titled Housing Bubble Contagion From City Centre To Suburbs, three Taiwan-based researchers argue bubbles spread outwards. Bubbles force investors and developers to look for […]
Ontario is out, and the coasts are in according to the latest population growth data. Statistics Canada (Stat Can) quarterly population estimates were released for Q1 2021. Interprovincial migration data shows Ontario lost more Canadians than it could attract. Affordable provinces such as Quebec and Nova Scotia were able to show a net gain. BC […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate The Canadian Property Bubble Inflation Is Now 75% Of Net-Worth Growth Canadian households are unusually dependent on real estate generating their wealth these days. The first quarter of 2021 saw 76.96% of net-worth from increased real estate values. This is the […]
The economy made some improvements but is still overly debt-dependent. That’s what the latest household debt to GDP data from Statistics Canada (Stat Can) shows for Q1 2021. The ratio is significantly higher than a year ago, but that aside — it was high before the pandemic. Canadian households make Americans before the Great Recession […]
