Unlock this week’s most important stories in Canadian real estate.
Canadian Real Estate
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Canadian Rental List Prices Make First Drop Since COVID, BC & ON Cities Lead Lower
Canadian rental prices have experienced an unprecedented annual decline, marking the first drop since 2021. The average monthly rental price decreased to $2,151 in October, a 1.2% decrease from the previous year. Notably, cities like Toronto and Vancouver are at the forefront of this downward trend, with British Columbia and Ontario cities witnessing the fastest decline in rents across Canada.
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Canada’s West Leads Provincial GDP, Per Capita Growth Dropped In Half
While Canadian per capita real GDP has been declining, this issue is primarily concentrated in a few provinces. According to a recent analysis by BMO Capital Markets, only half of Canada’s provinces are experiencing negative growth, with the other half maintaining positive growth rates. Surprisingly, British Columbia, often criticized for various economic factors, is leading the country in terms of per capita and aggregate growth.
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Toronto Real Estate Prices Roll Back To 2021 Levels, Near Technical “Crash”
Toronto’s real estate market continues to witness a decline in prices, showing little signs of stabilization. The Toronto Regional Real Estate Board (TRREB) reported that the benchmark home price dropped to $1.06 million in October, representing a 0.8% decrease compared to the previous month. This regression has brought prices back to levels last seen in September 2021, marking a considerable 19.3% decline since reaching a record high in March 2022.
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Canadian & American Bond Yields Form Widest Gap Since Asian Financial Crisis: NBF
The bond yield gap between Canada and the United States has widened significantly, signaling a rare divergence in their respective economies. According to the National Bank of Canada (NBF), this gap is currently the largest in the past three decades. Canada’s low bond yields suggest an economy grappling with oversupply issues and weak household conditions, while the U.S. has seen a surge in yields due to robust consumer spending despite higher interest rates.
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Bank of Canada Market Survey Sees Rates Staying Higher For Longer
A recent Bank of Canada (BoC) survey of market participants indicates a potential prolongation of higher interest rates in Canada. While this is typically indicative of a strong economy driving inflation, experts warn that the current situation may require measures to reinforce currency strength. The survey also suggests that inflation is expected to remain on target, raising concerns about the implications of extended high interest rates on the economy.
In conclusion, the real estate and economic landscape in Canada is experiencing significant shifts and challenges. From declining rental prices to widening bond yield gaps, it is crucial for individuals and policymakers to stay informed and adapt to these changing dynamics for a resilient future. Stay updated, stay informed, and take proactive steps to navigate through these turbulent times.
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