Home News This Week’s Top Stories: The World’s Largest Real Estate Bubble Is Crashing, & BoC To Hike Further

This Week’s Top Stories: The World’s Largest Real Estate Bubble Is Crashing, & BoC To Hike Further

by admin
0 comment

It’s time for this week’s top stories cheat sheet.

Canadian real estate

After job boom, Bank of Canada clears another hike: BMO

Canada’s employment data remained strong, with the economy adding 104,000 jobs in December. This brought the unemployment rate down to just 5.0%, just 0.1 percentage points above the 50-year low. BMO explains that this reinforces its expectations of higher interest rates this month. The economy is handling rate hikes so well that we won’t see a rate cut for at least a year.

Keep reading…

Canadian property bubble could crash until 2025 as indicators flash warnings

Canadian real estate generally showed moves ahead of an extended correction. Residential investment fell to his 6.7% of GDP in the third quarter of 2022, down from his 8.7% peak this cycle. It’s still on the rise and rivals the share of the economy the US spent on building homes during her 2006 bubble. Only two of her larger modifications were seen in Canada. They follow the bubble, and studies show that contractions lead to long-term adjustments.

Keep reading…

Canadian single-family home prices are plummeting, here are the hardest-hit markets

Canadian single-family home prices are seeing the rise disappear as fast as it came. Typical single-family home prices fell to $794,000 in November, down 17.8% (-$172,200) from their peak less than a year ago. The worst-hit markets include Oakville, where prices dropped a whopping $478,600 over the period. The only loss was home prices across Canada just a few years ago.

Keep reading…

Canadian mortgages surge after regulators alert

Canadian homeowners took advantage of property windfalls to secure mountains of debt. Loans secured by home equity he reached $308.9 billion in October, up 9.6% (+$27 billion) from last year. Regulators have warned that increased use of home equity loans will increase risk. These warnings apparently led to even faster borrowing.

Keep reading…

toronto real estate

Toronto real estate is world’s biggest bubble, officially ‘bursting’

Toronto real estate is the world’s largest real estate bubble and is now bursting. Home benchmark prices fell to $1,089,000 in December, down 21.4% (-$294,600) from its peak. A return in price of more than 20% within 12 months is the technical definition of a crash.

Keep reading…

You may also like