Real Estate

Canadian Real Estate Losses Are Reversing At A Brisk Pace: BMO

Canadian real estate prices surged higher as rates were cut, then plunged as rates climbed. According to a new BMO Capital Markets analysis, markets have retraced a significant portion of their losses despite higher interest rates. In fact, some real estate markets are even hitting new record highs alongside climbing interest rates.

Tracking The Canadian Real Estate Correction And Recovery

The bank’s chart shows the peak-to-trough decline, relative to the current market. Bars on the chart represent the peak-to-trough price drop, which generally occurred from Feb 2022 to Feb 2023. The black dot shows where prices are relative to the start of the correction.

For example, let’s look at Toronto. The city’s bar shows that the benchmark composite HPI fell 17% from peak to trough. Since hitting the bottom (trough), the dot indicates that prices remain 9% below peak. In short, nearly half of the price decline has been reversed.

Read more
Real Estate

Canadian Real Estate Is Once Again Inflationary, Reinforces Need For Hikes: BMO

Canadian real estate prices are rising, and that’s bad news if you’re looking for cheap credit. Statistics Canada (Stat Can)  reported new home prices made the first increase in nearly a year. In a research note to investors, BMO warned the increase is just one of many housing data points that shows shelter is back to driving inflation. That helps to justify the recent central bank rate hike, and potentially opens the door to further hikes. 

Canadian New Home Prices Return To Growth

New home prices made a small increase, but more importantly ended the losing streak. Stat Can reported the price of a new home increased by 0.1% in May, the first increase since August 2022. Builders attributed the increase to higher labor and material costs, which are still trickling into prices. 

Even though it’s a small increase, it’s a concern to see price growth return already. “The size

Read more