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Growing Signs of Economic Slack
Canada’s labour market added 22,000 jobs in August, roughly in line with expectations, with all gains coming from part-time job positions (+66,000) following losses in July. Full-time employment fell by 44,000. Labour force growth (+82,500), driven by strong population growth (+96,000), outpaced job gains, pushing the unemployment rate to 6.6 per cent – the highest…
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Affordable Housing – Moving Beyond Press Releases
The federal government recently announced plans to lease government-owned land to developers to build affordable housing. This initiative involves repurposing properties from Canada Post, National Defence and other federal offices to create new housing across the country. (This strategy was previously discussed in this space in earlier posts from February and March of this year.)…
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25 Basis Points: Going Once, Going Twice…
The US Personal Consumption Expenditures (PCE) price index increased 2.5% in July compared to the previous year, matching June’s rise, according to the Bureau of Economic Analysis. Excluding volatile food and fuel costs – the Federal Reserve’s preferred measure – the index also held steady at 2.6% annually. This marks the third consecutive benign PCE…
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A Fly in the Ointment
Pushing for greater density is a central part of the federal government’s strategy to encourage more affordable housing. Economists have found that government overregulation through zoning power is a key factor contributing to the housing shortage. Most zoning regulation happens at the local level, and generally, the more localized the zoning authority, the more restrictive…
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The Powell Pivot
Federal Reserve Chairman Jerome Powell laid out the groundwork for the next phase of monetary policy in his speech last Friday. He indicated that the Fed is ready to lower interest rates as inflation moves closer to the central bank’s 2% target and the labour market shows signs of cooling. Powell also expressed confidence that…
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Condo Conundrums
The Toronto condo market remains puzzling to most observers. Despite having nearly six months’ worth of inventory, price declines have been modest. The market is in buyer’s territory, but prices have been relatively flat – down just 3% year-over-year in July. The number of active condo listings has been increasing since early 2022. Active listings…
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Subdued Housing Markets Await Further Rate Relief
Canadian housing market patterns remained subdued in July as the interest rate cut at the end of the month did little to encourage buyers back into the market. MLS home sales held steady in July, according to the latest data from the Canadian Real Estate Association (CREA). Total sales slipped 0.7% month-over-month and 3.5% year-over-year …
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