Gains in the energy sector were offset by noticeable weaknesses in other industries
Author: Ephraim Vecina
Nearly a third of experts believe that the central bank should consider cutting rates
Halifax, in particular, enjoyed generous market gains
While the Canadian housing market has been characterized by consistent price growth over the past few years, a vast majority of home buyers in 2019 held positive viewpoints toward the idea of purchasing a residential property, according to a new nationwide analysis by Canada Mortgage and Housing Corporation.
Earlier this week, the federal government announced the launch of a new program which will help even more Canadians enjoy affordable home ownership – specifically, by assisting providers of shared equity mortgages.
A growing portion of Canadian households are finding it harder to service their assortment of debts, according to new data from Statistics Canada’s latest Survey of Financial Security.
Canada’s historic household debt levels will almost certainly affect banks and the GDP, according to a long-time markets observer.
Global economic uncertainty means that the Canadian economy will still benefit from the boost that low borrowing costs can provide, according to the Bank of Canada’s Governor.
“The bottom line is that the Canadian government needs to find ways to support, even incentivize, homebuyers in Canada (especially first-timers who are facing challenges entering the market) rather than penalize them.”
The housing declines observed nationwide last month might be a disturbing indicator that the current mortgage rules are actually too heavy-handed, according to Ryerson University associate professor Murtaza Haider and real estate industry veteran Stephen Moranis.
A growing number of Canadians are finding it difficult to pay off their financial accountabilities, according to a report by the Office of the Superintendent of Bankruptcy late last week.
Data from the Office of the Superintendent of Financial Institutions indicated intensified borrowing among Canadian seniors taking advantage of their housing equity, with growth of the nation’s reverse mortgage load reaching its highest point in 8 years.
A significant proportion of Canadians are beginning the year with tempered expectations for the housing market and the national economy, according to the latest findings of the weekly telephone polling conducted by Bloomberg Nanos Canadian Confidence Index.
As much as 76% of Canada’s national wealth is locked into real estate, according to Statistics Canada’ late December report covering “value of non-financial assets” during the third quarter of 2018.
Less than 60% are feeling good about the economy this year, however – considerably lower than the 65% in 2017. The proportion of those pessimistic about the economy is also catching up, at 41%.
The Canadian government should begin to ease on the much-tightened mortgage regulations introduced at the beginning of this year, as these rules have already fulfilled their mandate of moderating housing markets.
Consumer confidence among Canadians has reached a 12-month low, with grimmer expectations surrounding the economy and real estate prices, according to the latest poll conducted by Nanos Research Group for Bloomberg.
A sustained elevation in residential prices has slowed down new townhouse sales in Canada’s top markets, according to the latest market analysis by the Altus Group.
This has become especially evident in markets where significant numbers of buyers are moving away from single-detached properties due to these assets’ pricing.
“We must avoid at all costs what is happening in Vancouver and Toronto, where 90% of projects are sold to investors. Montrealers must be able to own their own city,” Laurence Vincent, co-president of development company Prevel, said in an interview with Montreal-based markets observer Yury Shupilov.
Preliminary housing starts data for October 2018 are pointing to a national market that is steadily slowing down due to pressure from various factors, according to the Canada Mortgage and Housing Corporation (CMHC).
“The national trend in housing starts declined for a fourth consecutive month in October, which leaves the trend at its lowest level since February 2017,” CMHC chief economist Bob Dugan stated in the starts report.
The recent interest rate hikes along with the implementation of tighter mortgage rules have moderated the risk of debt for a growing number of borrowers, according to a Bank of Canada research note released last week.
Exceeding even optimistic estimates, Canadians’ demand for recreational marijuana in the wake of the October 17 legalization has reached stratospheric heights – enough for major producers and sellers to struggle hard to keep up.
According to the Ontario Cannabis Store, it received 100,000 orders in just the first 24 hours of its operation.
Amid a spate of interest rate hikes and increasing cautiousness among borrowers, market players and analysts are sounding the alarm on a possible upward spike
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