Time for your cheat sheet on this week\u2019s top stories.<\/p>\n
Canadian Real Estate<\/strong><\/h2>\n\n\nCanada\u2019s Real Estate Bubble: First-Time Buyers Need To Be Among Top Earners<\/a><\/p>\nFirst-time home buyers need to be among the wealthiest households in Canada. That\u2019s the take from new Statistics Canada (StatCan) data revealing their income. The agency\u2019s data reveals these buyers earn between 13% and 36% more than the median in 2023. While the agency only provided data going back to 2021, it\u2019s enough to show a sharp erosion in affordability. Even if you\u2019re not a first-time buyer, this data presents a concern for the current home valuations. There simply isn\u2019t enough liquidity when only the top earners can afford to step on the property ladder.\u00a0<\/p>\n
Continue Reading\u2026<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\nCanadian Real Estate Nears A Bottom? RBC Calls It For An 8th Time In 4 Years<\/a><\/p>\nRBC is calling a bottom for Canadian real estate markets, much to the joy of the industry. It\u2019s welcome news, but there\u2019s just one teensy problem\u2014the bank has done this at least 2x\/year since the market peak. They first called a bottom a few months after the peak, while interest rates were still climbing. Reviewing the history it appears these calls weren\u2019t based on any data we could see. In other words, RBC\u2019s call looks more like wishful thinking than reality\u2014so it\u2019s nothing to get excited about.\u00a0<\/p>\n
Continue Reading\u2026<\/a><\/p>\n<\/div>\n<\/div>\n\n\nCanadian GDP Growth Rebounds In Q2, Driven By Temporary Events<\/a><\/p>\nCanadian GDP surprised by expanding 0.3% in June, helping to finish Q2 0.9% higher\u2014a stronger finish than expected. Headline data even looked broad, with 13 of 20 industrial sectors contributing. Drilling down into the details, a lot of heavy lifting was temporary events like the Census and World Cup. Unless Canada holds those quarterly going forward, it\u2019s hard to see this being repeatable. While things appear healthy, we\u2019re a long way from being in the clear.\u00a0<\/p>\n
Continue Reading\u2026<\/a><\/p>\n<\/div>\n<\/div>\n\n\nCanadian Bank Mortgages Near 6-Year Low As Arrears Barely Budge<\/a><\/p>\nThe arrears rate for Canadian bank mortgages fell to 0.28% in June, marking the first drop in over a year. Only 40 fewer mortgages in arrears triggered that drop, but it was amplified by rounding. Material improvements are much smaller than the rounded data suggests. However, there was a more troubling data point to pay attention to\u2014total bank mortgages. Canada\u2019s banks now hold the fewest since 2020, rolling back virtually the entire low rate boom. As their market share shrinks, so does the relevance of this data point.\u00a0<\/p>\n
Canada\u2019s Real Estate Bubble: First-Time Buyers Need To Be Among Top Earners<\/a><\/p>\n First-time home buyers need to be among the wealthiest households in Canada. That\u2019s the take from new Statistics Canada (StatCan) data revealing their income. The agency\u2019s data reveals these buyers earn between 13% and 36% more than the median in 2023. While the agency only provided data going back to 2021, it\u2019s enough to show a sharp erosion in affordability. Even if you\u2019re not a first-time buyer, this data presents a concern for the current home valuations. There simply isn\u2019t enough liquidity when only the top earners can afford to step on the property ladder.\u00a0<\/p>\n Continue Reading\u2026<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Canadian Real Estate Nears A Bottom? RBC Calls It For An 8th Time In 4 Years<\/a><\/p>\n RBC is calling a bottom for Canadian real estate markets, much to the joy of the industry. It\u2019s welcome news, but there\u2019s just one teensy problem\u2014the bank has done this at least 2x\/year since the market peak. They first called a bottom a few months after the peak, while interest rates were still climbing. Reviewing the history it appears these calls weren\u2019t based on any data we could see. In other words, RBC\u2019s call looks more like wishful thinking than reality\u2014so it\u2019s nothing to get excited about.\u00a0<\/p>\n Continue Reading\u2026<\/a><\/p>\n<\/div>\n<\/div>\n Canadian GDP Growth Rebounds In Q2, Driven By Temporary Events<\/a><\/p>\n Canadian GDP surprised by expanding 0.3% in June, helping to finish Q2 0.9% higher\u2014a stronger finish than expected. Headline data even looked broad, with 13 of 20 industrial sectors contributing. Drilling down into the details, a lot of heavy lifting was temporary events like the Census and World Cup. Unless Canada holds those quarterly going forward, it\u2019s hard to see this being repeatable. While things appear healthy, we\u2019re a long way from being in the clear.\u00a0<\/p>\n Continue Reading\u2026<\/a><\/p>\n<\/div>\n<\/div>\n Canadian Bank Mortgages Near 6-Year Low As Arrears Barely Budge<\/a><\/p>\n The arrears rate for Canadian bank mortgages fell to 0.28% in June, marking the first drop in over a year. Only 40 fewer mortgages in arrears triggered that drop, but it was amplified by rounding. Material improvements are much smaller than the rounded data suggests. However, there was a more troubling data point to pay attention to\u2014total bank mortgages. Canada\u2019s banks now hold the fewest since 2020, rolling back virtually the entire low rate boom. As their market share shrinks, so does the relevance of this data point.\u00a0<\/p>\n