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....
Bank of Canada Softens Stance on Inflation
Statement Suggests That Rate Cuts Could Come Sooner in Canada Than in US
As largely expected, the Bank of Canada held its policy interest rate steady at 5% for a sixth consecutive time this week. However, its accompanying statement hinted that the centr...
Suburban Offices Have Been More Resilient Than Their Urban Counterparts
But Even Workspaces Outside Cities Are Not Immune to Demand Shifts
Office vacancy and availability rates continue to rise in Canada due to the cyclical and structural forces affecting sector fundamentals over the past few years. However, the relat...
Population Growth and Higher Prices Prop Up Canadian Retail Sales
Retail Properties Are Benefiting, but Not Uniformly
Canadian retail sales surprised on the upside in December, increasing by 0.9% from a month earlier in a suggestion that consumer spending rebounded a bit in the fourth quarter of 2...
Canada Keeps Building Record Amounts of New Housing
More Supply May Be Helpful for Demand but Not Necessarily for the Economy
In recent years, there has been a growing consensus among consumers, businesses, and government that Canada is simply not investing enough in housing development. The issue has gro...
Inflation Still Hot in Canada
Mortgage Interest Costs, Rising Rental Prices Are Still a Factor
As expected, the headline consumer price index in Canada moved higher in the last month of 2023 to 3.4% year over year.
The Premium Paid for Homeownership in Vancouver Has Risen to Its Highest Level in Decades
Renting a Home Is a Far More Affordable Option and Will Likely Stay That Way for the Foreseeable Future
“If you've got a mortgage, or if you're considering a major purchase, or you're a business and you're considering making an investment, you can be confident that interest rates wil...
Bank of Canada Continues Its Hawkish Hold
Central Bank Warns It Is Prepared To Hike Rates Further Despite a Weakening Economy
As widely expected, the Bank of Canada kept its key policy interest rate steady at 5% on Wednesday, where it has been since its last rate hike in July.
Canadian Home Sales Slump Further Thanks to Higher Interest Rates
Structural Forces Continue To Point to Robust Price Growth Over the Long Term
Canadian home buying activity continued to slide in October. According to the Canadian Real Estate Association, existing home sales across the country fell by 5.6% compared to the ...