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Can Investors be Blamed for Higher Housing Prices?
The Canadian Housing Statistic Program (CHSP) has highlighted the activities of investors in the housing market. As we have noted, there are significant problems in how this data has been categorized. Investors include: governments for profit businesses individuals not resident in the province individuals resident in the province owning a property with more than one…
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Is Another Rate Increase in the Cards?
After a string of stronger than expected economic data and firm inflation readings, the Bank of Canada ended its rate pause and hiked its policy rate by 25 basis points on June 7. This lifted the target for the overnight rate to 4.75%. Market expectations were relatively split on whether the Bank would hike or…
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Finding Investors in all the Wrong Places
Statistics Canada has been highlighting the role of investors in the housing market. A recent study of five provinces, including BC and Ontario, found that over 25% of dwellings are owned by investors as of 2020. The problem is that the StatsCan report is misleading. As noted by two housing researchers in BC, Jens von…
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GTA Condo Market – Investors Needed
A recent report from CIBC and Urbanation paints a challenging future for new condo investors and the prospects for condo construction in the GTA. According to their analysis, nearly three-quarters (72%) of condo rental investors tend to buy new units as opposed to resale, with an average gap of five years between the purchase and…
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April Inflation – The Core of the Matter
A jump in headline inflation has caused a rethink in the market about a possible rate increase. The bond market is now leaning towards another 25-basis point increase this summer. April inflation data showed an acceleration in prices. The headline Consumer Price Index (CPI) figure rose 4.4% year-over-year in April, up from 4.3% in March….
Read moreHousing Market Rebounds
CREA reported a jump in existing home sales of 11.3% (in seasonally adjusted terms) from March. While sales were still down almost 20% from a year ago, activity is moving closer to pre-pandemic levels. The ratio of sales to new listings shot higher to 70.2%, with activity in the B.C. Lower Mainland and Greater Toronto…
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The Fed and Bank of Canada are on Hold for Now
The Fed hits the pause button The US Federal Reserve raised interest rates last Wednesday (May 3) for the 10th-straight meeting, bringing rates above 5% for the first time since 2007. Ahead of this decision, the market had been focused on whether this would be the final rate hike of this current cycle. With the federal funds…
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