By one measure, conditions in Canada are reminiscent of those present in the US right before a stateside housing bubble burst, yet a repeat performance to the north is unlikely.
“The problem, though, is that Canada has been undergoing a construction boom. As has been typical of historic real estate cycles around the world, new supply will reach the market just as demand is falling,”
“The number of consumers claiming insolvencies could continue to trend higher, but the good news is the upswing is nowhere near the double-digit gains seen during the depths of the financial crisis,”
The head of Canadian Imperial Bank of Commerce (CIBC) said that the country’s mortgage industry will plateau in the near-term, with growth limited to the low single-digits.
“For now, as we expect the Bank’s forecasts to be… more upbeat than our own, we would not be surprised if the Bank of Canada continues to argue that it needs to raise interest rates,” reads a Capital Economics Bank of Canada Watch
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.
Like many other market observers, Central 1 expects the Bank of Canada will hike its influential key interest rate this
As he sees it, there’s just one problem. “The problem is, it was probably too much, too quick.”
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%.
A strategic partnership between insurance and tech firm Valeyo and credit information provider Equifax has been announced.
Three interest rate hikes in 2019 — that’s what economists have been predicting for months, as part of the Bank of Canada’s ongoing strategy to keep the country’s inflation levels in check. But, according to one economist, that plan may have changed.
Canada’s new construction housing market could be hitting a wall, thanks to higher interest rates: TD
There was a slight increase in Canadian housing starts in November, the second month of strong activity for the homebuilding sector. But according to economists, the solid performance could hit a wall in 2019.
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