Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Ontario Premier’s Company Quietly Sold A $6.75m Property, Flipped Months Later
A company associated with Ontario’s Premier quietly sold a pricey piece of land. The industrial property in West Toronto went for $6.75 million, a premium compared to comps. The buyer didn’t lose out though, since it was transferred at a much higher value just a few short months later. Since the initial sale, the property’s value has significantly outpaced the market.
Canadian Economy In “Modest Excess Supply,” Higher Rates Need Time: Bank of Canada
The Bank of Canada (BoC) thinks monetary policy is fine at the current level but needs more time. The central bank warns inflation remains too high for its comfort but it’s also seeing progress. With excess supply of everything from goods to labor, their view is the only thing needed is time.
Canadian Business Insolvencies Soar To Highest Level In Nearly 20 Years
Canadian business insolvencies are making up time for the lull seen since 2020. Monthly insolvency filings for January hit the highest level in nearly two decades. The sudden surge comes as the end of pandemic supports meet higher interest rates, along with a higher input costs and a weaker consumer. A perfect recipe to kill small biz.
Canadian Mortgage Delinquencies Surge, Up 135% In Ontario: Equifax
Canadian mortgage delinquencies are climbing at an unusually fast rate, warns a credit rating giant. Equifax data shows mortgage delinquencies climbed double digits in most provinces. Ontario is a bit of an exception, but not in the good way—the province saw its delinquency rate surge 135% higher. The agency warns the issue is getting worse for young adults, as they’re observing this segment of mortgage borrowers increasingly struggle with their credit cards too.
Canadian Home Building Intentions Are Worse Than 2019 Despite Gov Stimulus
January saw just a small increase when it came to residential permit application values. When adjusted for inflation, the paltry amount looks even worse—lower in real terms than developers had been planning back in 2019. Gov stimulus is forcing non-market conditions, ironically doing the opposite of their goal.
Bank of Canada To Delay Rate Cut Talks As Economy Surprises: NBF
The death of the Canadian economy has been greatly exaggerated, at least on paper. That’s the take from National Bank, who sees the surprisingly positive data over the past few months, delaying rate cut talks. With a stronger than expected economy, the central bank would have a tough time justifying the rate cuts it began discussing back in January.
classism and corruption, business as usual