Low interest rates help to bring working and middle-class prosperity. Inequality will drop if only people could borrow more years of their income today. At least that’s the narrative society was sold on for the past 100 years. It turns out there’s no evidence to show that’s true. In fact, the evidence indicates it was […]
One Canadian bank doesn’t see home prices coming down anytime soon. Scotiabank shared their latest risk forecast in their Q2 2021 earnings. As of April 30, 2021, the bank sees a better outlook than they did in January. Home price growth is forecast to accelerate in the base and best case scenarios. As for the […]
Canadian housing investment is swallowing the whole darn economy. Statistics Canada (Stat Can) data shows residential investment is at a record high in Q1 2021. The recent housing boom has allowed the segment to grow much faster than gross domestic product (GDP). Consequently, it now represents a much larger portion of the Canadian economy. The […]
Canadian real estate is receiving a big warning sign from an indicator that was an alarm for the US in 2006. The house price-to-rent ratio shows Canadian real estate is overvalued. When contrasted to the US is when you really get a feel for how much Canada went all-in on real estate. It makes 2006 […]
Running out of land is as Canadian as hockey, maple syrup, or laundering money for global crime networks. In fact, Canadians love running out of land so much, they do it every few years. Many are currently justifying high home prices by claiming a lack of land in Canada. This isn’t just something people have […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate BMO Revises Worst-Case Forecast For Canadian Real Estate To A Much Larger Drop BMO thinks home prices can drop much more than they did just a few months ago. Over the next two years, the bank sees home prices making a 28.7% […]
Canada’s property bubble is reaching the point where few people in the country can buy. Home price growth is still surging across the country, but sales are falling. The odd combination made us curious how many households can still afford to buy. To the surprise of no Millennials, very few people can afford to buy […]
Canada’s largest bank still sees home prices making a steep drop in a worst-case scenario. RBC regulatory filings for Q2 2021 show the bank’s forecast for risk planning. Currently, they see price growth slowing from current levels, but still advancing. If housing surprises to the upside, they see home prices advancing a little more quickly. […]
A large Canadian financial institution sees higher mortgage rates in your future. Desjardins’ mortgage forecast shows they expect mortgages to continue to climb from here. They see 5-year fixed mortgage rates hitting pre-pandemic levels by next fall. That is before the first expected hike to the overnight rate from the Bank of Canada. Canadian Mortgages […]
Canada’s largest bank thinks the real estate mania might be coming to an end, as conditions loosen. The market is still very tight, according to RBC senior economist Robert Hogue. However, buyer demand is falling much faster than new inventory. April reported the third consecutive month where buyers dropped out of the market faster than […]
