Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canadian Unemployment Rate Falls, Potential Set Up For Further Rate Hikes
Canada’s unemployment rate bucked expectations and fell for the first time in a year. The unemployment rate dropped 0.1 points to 5.7% in January, with some caveats. Despite less than flattering details, it’s the headline data that typically drives expectations. At least one prominent firm warns the longer this persists, the longer higher interest rates may stick around.
Bank of Canada More Concerned About Inflation Than Speeches Imply
Canada’s central bank’s last announcement led the public to believe inflation was under control. That’s not what the Governing Council’s deliberations notes show, which expressed concerns that inflation isn’t cooling fast enough. More than half the inflation basket saw above target price growth. In addition, their preferred measure (Core CPI) is nearly double the target rate.
Canadian Business Insolvencies Surge To Record Growth, Worse Than Data Shows
Canadian business insolvencies surged to show record growth last year. Regulators received 4,810 business insolvency filings in 2023, up 41.4% from a year before. Insolvency experts warn this is just scratching the surface of small business problems. They warn the vast majority of businesses closing aren’t even trying to mitigate their debt problems. They’re simply closing and not being replaced.
Toronto Real Estate
Toronto Real Estate Recovery Will Takes Years, Not Months: BMO
Greater Toronto real estate activity saw a sharp uptick last month, but don’t expect prices to follow. Prices continued to fall, with at least one bank warning it will take quite some time to return to the all-time high. BMO reminded investors that financing isn’t all that cheap, even with the rate cuts forecast for year-end. At the same time, historical corrections have taken at least a minimum of 3 years to recover the ground recently lost. In the early 90s, it took nearly 12 years in nominal terms—even longer when adjusting for inflation.
Toronto Real Estate Sales Surge 39%, Prices Fall Further W/ Robust Supply
Toronto real estate sales climbed but prices continued to fall. A massive 39% increase for existing home sales in January wasn’t enough to stop falling prices. This is largely due to a massive uptick in inventory over the past few months, that kept the market in balanced territory after climbing sales. With more sellers expected to cash in on the uptick in buying, short-term price growth may be limited, if present at all.
I have been using Work BC for 7 years in and off, I have a case manager there who I speak with often. I asked her.. who the hell wants to come to Canada when there are hardly any good jobs and the standard of living is ridiculously expensive, rent and home ownership is expensive/out of reach. She said “I have 100 people on my case load and they want a 30 an hour job but have poor English and or lack of skills”.
So I ask what kind of immigrants are we letting into Canada if they do not have an education and failing to bring the skill set and education we actually need to fill jobs which as doctors/nurses and other professionals.
I feel our government is allowing multitudes of people in driving our rental market and home prices to unaffordable, unattainable levels and pushing people that live here to move.
When Covid came, I read an article about how Canada closed its only vaccine lab in Montreal some years back and how we had baby food shortages etc…
Come on Canada! Stop being dependant on other countries and create jobs here at home!!!
It’s the only thing Donald Trump that disposable character had right, is growing factories and creating businesses at home rather than buying everything from afar.
That’s what Canada needs to do. Create jobs and become less dependant on everything produced by foreign countries.
If Germany is able to produce quality products people trusted and would purchase over buying something cheaply made in China.
It goes to show some are willing to pay for quality.
And since w are trying to not be dependant on China.
Maybe it’s time we voted for, sought out and employs a government with some kind of quality vision. This country has gone to ‘shit’ for a better lack of words for decades and no one has any vision for it. It’s like it’s been sold to the devil! Shame on our government and Canada need a freeking overhaul. SOS!!!
Back to work he Work BC case manager.. she said her and her husband will definitely not be retiring here! We both had the same sentiments.
I wasn’t born here. I’m Portuguese and was born in France. But came here when I was four years old. And sadly I cannot foresee myself affording to live here when I retire.
A Filipino person said in a paper article I read recently that they travelled to Canada and said “Oh no Canada you are far too expensive”!
My parents travel and spend time in Portugal every year and they say things are much cheaper and quality is better there than Canada.
So how is it a rich resource driven country is sucking the blood of people who live here to the point it’s driving people to poverty?
U gotta ask questions and wonder that the hell is going on??!!
I say Canada is toooo corrupt and greedy!