Canadian real estate’s high flying prices are increasing the risk of a large correction. BMO Q2 2021 disclosures show the bank made big revisions to its risk forecast. In the best-case scenario, they see exuberance pushing prices more than twice as high as previously thought. In the worst case, they’ve more than doubled the size […]
Canadian real estate prices may be hitting peak growth soon… if a leading indicator continues to hold true. The sales to new listings ratio (SNLR) finally peaked at an absurdly high level, and has since made a sharp drop. The ratio, used as a measure of inventory absorption, has a track record of leading price […]
Greater Vancouver new home sales are on the rise, as the market gobbles up new inventory. MLA Canada data shows April was a busy month for new home inventory, with buyers absorbing more than half of units launched. Pandemic delays led to a significant backlog of inventory though, that will be coming to market soon. […]
One of Canada’s frothiest market indicators surfaced — rents are rising with vacancies. Canada Mortgage and Housing Corporation (CMHC) data from their 2020 rental survey shows a sharp uptick in vacancies. Normally this is expected to bring prices down, but not in a property bubble. Rental prices continue to rise along with increasing vacancies. In […]
Toronto and Vancouver condos are starting to attract foreign buyers again… at least the newer inventory is. Canada Mortgage and Housing Corporation (CMHC) data show a mixed movement in 2020. Toronto’s total rate of non-resident condo ownership declined, while Vancouver’s increased. Both cities are still seeing non-resident ownership of new supply climb though. Foreign Buyers […]
The Canadian real estate market has been very tight in terms of supply, but that’s beginning to change. The sales to new listings ratio (SNLR) made a sharp decline in April, according to data from the Canadian Real Estate Association (CREA). Declines were seen at both the national level, as well as the majority of […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Bank Of Canada Indicators Now Show Some Real Estate Markets Are A Bubble Canada’s central bank published its own index of overvalued housing markets. The BoC’s latest research shows Toronto, Hamilton, and Montreal are exuberant (AKA bubbles) in Q1 2021. Montreal […]
Record Canadian real estate sales and cheap money has led to a boom in mortgage debt. Bank of Canada (BoC) data shows residential mortgage credit hit an all-time high in March. That isn’t surprising, since it hasn’t fallen in Canada for a very long time. The rate at which it’s increasing is simply mind-blowing though. […]
Canadian mortgage borrowers are increasingly overleveraged, while better-positioned ones take a step back. Bank of Canada (BoC) data shows overleveraged borrowers represented a larger share of new mortgage debt in 2020. The rise came at the expense of those with better debt levels. That means there is a lot more risk entering the market, for […]
Canadian property bubbles have seen affordability creep past the world’s most influential cities. Oxford Economics released new North America Housing Affordability Indices (HAIs) for Q1 2021. The index measures housing affordability for the median household in various cities. They found Canada’s hottest real estate markets are now less affordable than globally influential US cities. Heck, […]
