Job growth unlikely to boost Canada’s office market in the new year
Stronger prospects for office absorption will likely have to wait until 2026
Green shoots appeared in Canada’s office market this year, but the outlook for office demand will likely remain modest in 2025, largely due to a sluggish labor market.
Substantial number of condo completions contribute to Canada’s rental supply boom
In Toronto, surging rental condo listings taming market rent escalations
Canada Mortgage and Housing Corp. recently released its Fall 2024 Rental Market Report, which showed that rental market conditions across Canada's large urban areas remain historic...
Housing starts leap as Canadian homebuilders try to meet demand
Urban housing construction starts in November increased in seven of 10 provinces
The nation's desperately undersupplied housing market continues to see valiant efforts made by homebuilders to address the shortfall.
Where's the boost? Latest 'super-sized' policy rate cut not providing rocket fuel for real estate.
Bond yields, which largely determine real estate financing costs, went up after the Bank of Canada's latest rate cut announcement
Canada's real estate sector enthusiastically welcomed the Bank of Canada's second consecutive, 'super-sized' half-point reduction in its policy interest rate this week.
Whither the loonie?
The depreciating Canadian dollar reflects economic weakness but could also be positive for the country’s real estate sector
Canada’s currency, often called the loonie, has significantly depreciated against the U.S. dollar over the past three years. But that might not spell trouble for the country's real...
Canadian real gross domestic product growth very soft in third quarter
Consumer spending a surprise bright spot that is likely to dim next year
Canadian economic growth remains very sluggish, underperforming its expected potential. In the third quarter, Stats Can reported that real gross domestic product grew by just 1% qu...
Canadian retailers are resilient
Recent federal government measures will keep shoppers spending, but cracks are forming at some types of stores
Although Canadian households have grown weary of high interest rates and prices, aggregate retail spending across the country has been holding up relatively well.
Potential downside risks could thwart Canada’s expected economic recovery
Slower population growth and expected US policy shifts could cause Canada’s economy to underperform expectations
Despite subdued near-term growth prospects, Canada’s economy is anticipated to improve over the second half of 2025. According to Oxford Economics, quicker policy interest rate cut...
Green shoots appear in Canada's office market
Road to full recovery still looks a long way off
Full calendar-year net absorption is on track to turn positive in 2024 for the first time since 2019 and major office markets such as Toronto and Calgary are helping to lead the wa...
Canadian inflation jumps higher
Further easing of service-side inflation consistent with another interest rate cut in December
Headline inflation in Canada increased slightly more than expected in October up 2% year on year and above its previous month’s print of 1.6%. The Bank of Canada's preferred "core"...
Economic growth in Canada and the US continues to diverge
Deeper rate cuts in Canada than in US is consistent with the weaker state of Canada’s economy
Economic growth in Canada appears to be losing momentum over the second half of the year.
'Flight to new' not occurring in Canada’s rental apartment market
Unlike office sector, new multifamily buildings are experiencing much higher vacancy than older counterparts
Canada’s housing shortage problems are well known and continue to be a major policy focus for all levels of government. However, despite a surge in the development of new purpose-b...
Despite cutting rates again, Bank of Canada could still be trailing the curve
In signaling more cuts to come, central bank has largely worked off same script from July
The Bank of Canada's cut in its overnight rate by 25 basis points to 4.25% on Wednesday was fully priced in the market as the central bank largely worked off the same script it use...
Canada Is Technically Not in a Recession, Yet
Alternative Indicators Suggest the Bank of Canada May Be Behind the Curve
The Bank of Canada cut interest rates by 25 basis points for a second consecutive month in July and acknowledged that its shifting policy stance was in response to fading inflation...
Increasingly Dovish Bank of Canada's Rate Move Unlikely to Boost Property Demand
Central Bank's Modest Approach Includes Striking Balanced Tone
The Bank of Canada did what was largely expected by financial markets and reduced its policy interest rate by a modest 25 basis points to 4.5% on Wednesday. The cut followed a 25-b...
Apartment Rent Growth Is Decelerating
Inflation Measures Have Yet To Reflect Slowing Rent Increases, Lagging Indicator Could Impact Policy Decisions
Although Canadian inflation is on its way back to a preferred trend rate of 2%, the journey has been relatively slow, mainly due to specific factors in the Consumer Price Index bas...
The Long-Term Housing Affordability Fix No One's Discussing
Policies To Drive Household Income Growth Could Also Help Close Gap With Home Prices
Canada is experiencing a severe housing affordability crisis. According to the Bank of Canada’s housing affordability index, which measures the percentage of household income requi...
Policy Rate Cuts Not Expected To Re-Ignite Canadian Home Prices This Time
New Reduction Unlikely To Spark Surge in Homebuying Activity, Even if the Bank of Canada Continues To Lower Rates Forcefully
Now that the Bank of Canada has cut its policy interest rate for the first time in four years, some market participants may be bracing for the possibility that house prices will aw...
Why Real Estate Investors Should Not Expect Materially Lower Financing Costs
Real Estate Financing Costs Unlikely To Drop Even if Bank of Canada Forcefully Cuts Policy Rate
With inflation receding and the economy limping along, the Bank of Canada is expected to begin cutting its policy interest rate this summer. CoStar, as well as other forecasters an...
One Size May Not Fit All When It Comes to Maintaining Restrictive Real Policy Interest Rates
Given the State of Canada's Economy, Should Rates Be Lower?
To quell a surprising inflation surge during the pandemic, central banks across advanced economies sharply lifted policy interest rates to levels that haven’t been seen in decades....