Canada 2021 Housing Forecasts Call For A Boom … Or The Worst Crash in 40 Years

[Huff Post - January 2, 2021] Amid an unpredictable pandemic, forecasts for the housing market are pretty much all over the map. This could be the toughest year in living memory to make predictions about the economy ― especially the housing market. Amid the worst economic slowdown in decades, home sales and prices soared in many Canadian cities in 2020, along with housing markets in many other countries. The average house price in Canada has shot up by 13.8 per cent   over [...]

Read more...

Bank of Canada doesn’t see housing bubble but it’s watching out, deputy governor says

[Yahoo Finance - December 10, 2020] TORONTO — A deputy governor of the Bank of Canada says the central bank is monitoring rising housing prices, as it keeps interest rates low to help borrowers cope with the COVID-19 pandemic. “Making sure we're not creating a bubble is very important here. And so we're keeping an eye on that,” said Paul Beaudry in a Thursday in a wide-ranging question-and-answer session for the Greater Moncton Chamber of Commerce, the Fredericton Chamber of Commerce, [...]

Read more...

Bank of Canada stands pat in year’s final rate decision, balancing COVID-19 risks with vaccine optimism

[Globe and Mail - December 9, 2020] The Bank of Canada stood pat on monetary policy in its final scheduled interest-rate decision of an eventful 2020, balancing the near-term economic risks from the second wave of the COVID-19 virus with the arrival of vaccines to alleviate the pandemic. The central bank announced Wednesday morning that its governing council had opted to leave the bank’s key policy rate unchanged at a record-low 0.25 per cent, where it has sat since a series [...]

Read more...

Why debt is still a four-letter word for housing markets

[Financial Post - November 10, 2020] One usually expects an increase in job losses to impact housing markets by triggering a decline in sales and mortgage debt. The COVID-19-induced job losses are different. Despite the increase in job losses, sales and mortgage debt have also increased in many cities across Canada. Canada Mortgage and Housing Corp. (CMHC) in a report released in October warned about elevated household debt levels and the implications for the housing markets. The report said that heavily [...]

Read more...

How long can interest rates stay low once a vaccine arrives?

[CBC - November 10. 2020] Jubilation over the good news about a vaccine has taken markets by storm. Shortly after the news broke on Monday that the U.S. drugmaker Pfizer had a COVID-19 vaccine breakthrough that appeared 90 per cent effective, the Dow Jones industrial average soared more than 1,500 points, , a rise of more than four per cent. The Toronto market also took off. Canadian oil and gas shares shot up on the prospect of people climbing back into cars for road trips [...]

Read more...

Condo listings increase in Greater Vancouver but prices expected to remain flat over next two years

[The Georgia Straight - November 25, 2020] Prices of condos have flattened since the start of the pandemic. Also, the supply of apartment units on the market is rising. Economists have used these terms to describe what is happening with the condo sector. These are accurate, according to Brendon Ogmundson, chief economist for the B.C. Real Estate Association, when asked for his read. Is it time for sellers and condo owners to panic? Not if one appreciates the economist’s historical analysis of the condo [...]

Read more...

Bank of Canada phasing out 3 programs set up in early days of COVID-19 to provide emergency liquidity

[CBC - October 16, 2020] Demand has waned in recent weeks, a sign things may be getting back to normal. The Bank of Canada is winding down three emergency programs it set up to provide support to financial institutions during the early days of the pandemic, as demand for all three programs is falling now that things are getting back to normal. In a news release late Thursday, the central bank said it will close two programs known as the Bankers' Acceptance Purchase Facility, or BAPF, and the [...]

Read more...

Bank of Canada keeps key interest rate unchanged, says COVID-19 economic recovery likely by 2022

[News 1130 - October 28, 2020] OTTAWA – The Bank of Canada kept its key interest rate on hold Wednesday as it said the country’s economy won’t fully recover what was lost to COVID-19 until 2022, with the road to there dependent on the path of the pandemic. The central bank held its overnight rate target at 0.25 per cent. In July, the Bank of Canada said it believed the country had been spared from a worst-case scenario. The bank’s updated outlook in [...]

Read more...

Vancouver well positioned for housing market recovery, industry experts say

[Globe and Mail - October 7, 2020] Winter is coming. But once the pandemic is over and immigration numbers return, Vancouver will be well positioned for a housing market recovery, said industry experts at the Vancouver Real Estate Forum held last week. The annual forum, held virtually this year, is the largest in the Lower Mainland, and covers all matters related to development. Opening speaker Benjamin Tal, deputy chief economist at CIBC, was frank about the fact that the dark days [...]

Read more...

Bank of Canada: Negative interest rate, ‘in the toolkit’

[RCI - October 9, 2020] Around the world economies are suffering from the effects of the pandemic and central banks have lowered interest rates as one measure to mitigate the effects. Here in Canada, several reports have indicated that an economic recovery which seemed to be underway in mid summer, has now stalled. COVID rates are up, especially in Canada’s two most populous and hardest hit provinces, Ontario and Quebec. Each has imposed new restrictions which further hurt the economy, especially businesses [...]

Read more...