This Week’s Top Stories: Canada’s Real Estate Wealth Boom Is Over And Is Now The Most Vulnerable Advanced Economy

Time for your cheat sheet on this week’s top stories.

Canadian Real Estate

The Canadian Real Estate Wealth Boom Is Over, Expect $1.6 Trillion In Losses: RBC

Canadian real estate values soared over the past few years, helping to drive wealth. However, now that we’re past peak — RBC sees housing pulling wealth back. The bank notes households lost $900 billion in Q2 2022, the largest drop on record. By the end of this cycle, they expect households to lose $1.9 trillion from the peak.

Continue Reading…

Global Real Estate Downturn Can Kill Growth, Canada Most Vulnerable: Ox Econ

Canada is one of the most vulnerable economies in the upcoming recession. The dependence on housing investment as a share of its economy leaves it vulnerable to shock. Few countries would allow their advanced economies to become so dependent on housing that 1 in 10 dollars of GDP comes from housing. Not Canada though. Higher interest rates make it more vulnerable than any other advanced economy.

Continue Reading…

Bank of Canada Should Release The Inflation Index Data It’s Using: BMO

The Bank of Canada used an obscure data point to justify its decision this week. There was just one problem — this critical inflation point isn’t a typical one. BMO Capital Markets urges the central bank to release this data regularly. Despite being presented as normal, economists at BMO couldn’t re-create the never-before-seen data. If the market is going to move based on this index, it should be regularly released, argues the bank.

Continue Reading…

Bank of Canada Hikes Rates Just Half-Point, Economy Not Strong Enough

Canada’s central bank surprised markets with a smaller-than-expected hike to the overnight rate. The Bank of Canada (BoC) raised rates 50 basis points, a third less than expected by the market. Along with the smaller hike was a GDP forecast cut in half, and inflation recovering much sooner. In other words, an economic slowdown is now expected to curb excess demand.

Continue Reading…



We encourage you to have a civil discussion. Note that reads "civil," which means don't act like jerks to each other. Still unclear? No name-calling, racism, or hate speech. Seriously, you're adults – act like it.

Any comments that violates these simple rules, will be removed promptly – along with your full comment history. Oh yeah, you'll also lose further commenting privileges. So if your comments disappear, it's not because the illuminati is screening you because they hate the truth, it's because you violated our simple rules.

Comments are closed.