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Friday , 28 August 2015

Category Archives: Market News

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News with a focus on real estate, finance and the marketplace

Real estate lifted Canadians’ net worth in 2014: report

The year 2014 was a good one for Canadians with investments and real estate holdings. The stock market was up 10.5 per cent, real estate up 5 per cent, and the gap between rich and poor actually shrank slightly. Household net worth rose 6.1 per cent compared to the previous year, despite an increase of 2.9 per cent in household debt. People generally saved more and borrowed less. This all left Canadians’ balance sheets “in very good shape,” according to Environics Analytics senior analyst Peter Miron in the eighth annual report on the nation’s household finances, Wealthscapes 2015. The analysis is based on 178 financial and investment statistics drawn from ... Read More »

Canadians good debt managers, housing market strong: CMHC

Canadians continue to show a strong ability to manage their debts, the mortgage insurance business is strong, and the new housing market is in a state of equilibrium, poised either to grow or decline slightly depending on the country’s overall economic performance for the rest of the year. If this sounds rosier than the usual housing market/consumer debt commentary, it could be a question of tweaking the message to suit the audience. The messenger in this case is Canada Mortgage and Housing Corporation (CMHC), the audience the Canadian people and their elected representatives. CMHC just released its second-quarter financial report and outlook for the remainder of 2015. It’s a given ... Read More »

Record new home price growth continues; what about mid-rise?

When the real estate industry talks about Toronto’s housing market, it focuses almost entirely on sales numbers and prices, which are always going up. That’s good for the real estate industry, which is very happy with the way things are going just now. When the banks, mortgage companies and government agencies like Canada Mortgage and Housing Corporation talk about the housing market, they tend to focus on risks: overvaluation, overbuilding, overleveraging by consumers. While they acknowledge that there could eventually be potential problems such as a price correction, they generally take a very positive position, saying that “the fundamentals” of the economy are sound, while interest rates and demographics support ... Read More »

Housing market resilient but uneven, bank rate to rise: RBC

The latest housing market forecast from RBC reveals the bank’s sanguine attitude right off the top. Canada’s housing market is poised to post one of its best years on record in 2015. Market momentum at present is uneven—strong in Ontario and British Columbia, weaker in Alberta and Saskatchewan—but the future holds a cooling of the market, not a crash. And the main coolant will be interest rates. So writes senior economist at RBC Robert Hogue. For the rest of this year, RBC is forecasting the resale market to rise by 5 per cent, to just over half a million units. This would be the second-highest level on record, and once ... Read More »

CMHC red-flags fast-rising home prices in Toronto

Vancouver and Toronto are the only two real estate markets in Canada where home prices are growing strongly. Yet Vancouver, famous for its high-priced housing market, where the average home now costs $866,772, is not considered an overvalued market. Toronto, where the average cost of a home reached $609,236 in June (Canadian Real Estate Association numbers), is. How can this be? Canada Mortgage and Housing Corporation (CMHC) explains the apparent paradox. High prices alone are not necessarily an indication of overvaluation. This is important because overvaluation is one of the signs CMHC uses to measure a housing market’s risk of a price correction. And overvaluation is somewhat complex. A market ... Read More »

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