Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canadian Immigration Changes To Impact BC & Ontario Real Estate Most: BMO
Canada is changing course on immigration and that means real estate investors should pay attention. A new BMO Capital Markets report notes the population declines will be felt the sharpest in regions that saw a big uptick in temporary residents. As a result, shelter costs in BC and Ontario are expected to see a more immediate and rapid correction than the rest of the country.
Canadian Permanent Resident Applications Fall 57%, Weakest Month In Years
Canadian government data shows the country has seen permanent residents applications plunge already. The country received 57% fewer applications in July than last year, also making it the weakest month in the past 3 years. This comes ahead of policymakers implementing caps on applications starting next year. It’s worth noting the caps came after they would have seen the data, and are just below the natural trend forming. In other words, the caps are most likely to save face after a sharp drop in demand rather than a sudden shift in the policies they rigorously defended.
Canada Added 500k People But No New Businesses
Canada is still adding people at a rapid rate but no new businesses, a sign of a weak economy. Year to date in 2024, the population added 500k more people but saw no increase in the number of businesses that operate. Imagine adding a city around the size of Halifax, but with no businesses? That’s essentially what happened, and considering new businesses is a strong sign of consumer sentiment, this indicator is flashing emergency lights.
Canadian GDP Driven Solely By Public Admin, Biz Growth Turns Negative
Canada’s economy isn’t growing and growth is being displaced by bureaucracy. That’s the read from real GDP data which showed no growth in August, following an anemic 0.1% increase the month before. National Bank warns the 3-month trend was negative for business growth, made up by the public sector. Public sector growth also wasn’t in the areas many would hope, like doctors and teachers, but primarily public administration. If this is Canada’s economy while the global economy is booming, it’ll be rough when a global downturn inevitably arrives.
Toronto Real Estate
Toronto Condo Prices Just Had One of The Worst Months On Record
Greater Toronto condos just saw the floor give out from under its prices. A benchmark condo saw prices drop a whopping 2% (-$13.4k) to $654,300 in September, a significant single-month decline. It also marked the 5th consecutive monthly decline, with the most recent much larger than the previous one. The start of the monetary easing cycle was supposed to reverse weak demand, but after reality set in, it’s actually accelerating. In short, Toronto might have much bigger issues than just mortgage rates.
I think Understand a bit,how the system works so beautifully, very well planned and calculated.. Anyway, here’s an idea, how about some cap or rule changes, for condo fees,or maybe you can claim the condo fees on your income tax.Only if it’s primary residence,if something major needs to be done,why should I dish out 15,000$,, extra for a roof repair for example,, maybe some kind of insurance could do that.Anyway,if some incentives were there, that are common sense, they would sell believe me.. Just making a point that’s all.Thanks.