Readout of January meeting shows Fed not wed to particular pace of rate hikes
United States Federal Open Market Committee (#FOMC) members and the Fed's Board of Governors determined that increasing the target range for the federal funds rate "would soon be appropriate," according to minutes from the FOMC's January meeting
https://www.reuters.com/business/fed-minutes-likely-provide-details-rate-hikes-balance-sheet-reduction-2022-02-16/
United States Federal Open Market Committee (#FOMC) members and the Fed's Board of Governors determined that increasing the target range for the federal funds rate "would soon be appropriate," according to minutes from the FOMC's January meeting
https://www.reuters.com/business/fed-minutes-likely-provide-details-rate-hikes-balance-sheet-reduction-2022-02-16/
Reuters
Readout of January meeting shows Fed not wed to particular pace of rate hikes
Federal Reserve officials last month agreed that, with inflation tightening its grip on the economy and employment strong, it was time to raise interest rates, but also that any decisions would depend on a meeting-by-meeting analysis of inflation and other…
The trend in housing starts was 254,133 units in January 2022, down from 261,352 units in December 2021.
For SAAR housing starts in Canada’s urban areas, single-detached starts were higher, while multi-family starts declined in January.
On a trend and monthly SAAR basis, the level of housing starts activity in Canada remains historically high. However, the six-month trend in housing starts was lower from December to January,” Among Vancouver, Toronto and Montréal, Montreal was the only market to post growth in total SAAR starts in January. This was due to higher single-detached and multi-family starts.
https://www.linkedin.com/posts/steve-talakoub-2664ab170_housingtrends-housingmarket-housingdevelopment-activity-6900800770024058880-8bGZ
For SAAR housing starts in Canada’s urban areas, single-detached starts were higher, while multi-family starts declined in January.
On a trend and monthly SAAR basis, the level of housing starts activity in Canada remains historically high. However, the six-month trend in housing starts was lower from December to January,” Among Vancouver, Toronto and Montréal, Montreal was the only market to post growth in total SAAR starts in January. This was due to higher single-detached and multi-family starts.
https://www.linkedin.com/posts/steve-talakoub-2664ab170_housingtrends-housingmarket-housingdevelopment-activity-6900800770024058880-8bGZ
Linkedin
Steve Talakoub on LinkedIn: #housing #canada #toronto #vancover #statistics #realestate…
#housing start across #canada. pay attention to #toronto and #vancover #statistics.
The trend in housing starts was 254,133 units in January 2022, down from…
The trend in housing starts was 254,133 units in January 2022, down from…
The Bank of Canada raised its target for the overnight rate to 0.50 per cent.
The 25 bps hike to contain inflation is the first since 2018, after cutting to help cushion the pandemic’s economic blow in 2020.
Canada's central bank says more rate hikes are coming but says it is following the situation in Ukraine closely. “The unprovoked invasion of Ukraine by Russia is a major new source of uncertainty,” said the Bank of Canada in a release.
“Prices for oil and other commodities have risen sharply. This will add to inflation around the world, and negative impacts on confidence and new supply disruptions could weigh on global growth.”
Meanwhile, here at home fourth-quarter GDP growth came in at an annualized rate of 6.7 per cent.
“This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed.”
https://ca.finance.yahoo.com/news/bank-of-canada-raises-interest-rate-first-time-2018-151247885.html
The 25 bps hike to contain inflation is the first since 2018, after cutting to help cushion the pandemic’s economic blow in 2020.
Canada's central bank says more rate hikes are coming but says it is following the situation in Ukraine closely. “The unprovoked invasion of Ukraine by Russia is a major new source of uncertainty,” said the Bank of Canada in a release.
“Prices for oil and other commodities have risen sharply. This will add to inflation around the world, and negative impacts on confidence and new supply disruptions could weigh on global growth.”
Meanwhile, here at home fourth-quarter GDP growth came in at an annualized rate of 6.7 per cent.
“This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed.”
https://ca.finance.yahoo.com/news/bank-of-canada-raises-interest-rate-first-time-2018-151247885.html
Yahoo
Bank of Canada raises benchmark interest rate for the first time since 2018
The Bank of Canada noted in its release that "the unprovoked invasion of Ukraine by Russia is a major new source of uncertainty."
BMO Capital Markets revised its interest-rate outlook for Canada, and now anticipates the Bank of Canada to raise its benchmark rate by a half-percentage point at its next two policy announcements--on April 13 and June 1. BMO anticipates another quarter-point increase in July, lifting the BOC's overnight rate to 1.75%. By the end of 2022, the BOC benchmark rate will sit at 2%. BMO previously said BOC would raise rates by a quarter-point at four consecutive policy decisions. The change in outlook was due in part to remarks Friday from BOC deputy governor Sharon Kozicki, who signaled a more hawkish path for rate rises as the central bank deals with inflation at a three-decade high and broadening price pressures.
Canada to Ban Foreigners From Buying Homes as Prices Soar https://www.bloomberg.com/news/articles/2022-04-06/canada-to-ban-some-foreigners-from-buying-homes-as-prices-soar
Bloomberg.com
Canada to Ban Foreigners From Buying Homes as Prices Soar
The Bank of Canada is raising its target for the overnight rate by 0.5 per cent to 1 per cent.
Canada's central bank says it will also stop buying government bonds and begin quantitative tightening (QT), beginning April 25.
https://ca.finance.yahoo.com/news/bank-of-canada-hikes-interest-rates-50-basis-points-140816248.html
Canada's central bank hikes rates to tackle inflation.
Canada's central bank says it will also stop buying government bonds and begin quantitative tightening (QT), beginning April 25.
https://ca.finance.yahoo.com/news/bank-of-canada-hikes-interest-rates-50-basis-points-140816248.html
Canada's central bank hikes rates to tackle inflation.
Yahoo
Bank of Canada hikes key interest rate by 50 basis points
Canada's central bank hikes rates to tackle inflation.
The Globe and Mail: Mortgage Rundown: After this week's Bank of Canada rate increase, how high could mortgage rates climb?.
the bank boosted its projected “neutral” rate by 25 bps. Its midpoint estimate for neutral – the theoretical rate that supports stable inflation – is now 2.5 per cent. The implication is that rates need to climb another 150 bps, or more, to get inflation on track long-term.
https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-canada-interest-rate-increase-affect-mortgage/
the bank boosted its projected “neutral” rate by 25 bps. Its midpoint estimate for neutral – the theoretical rate that supports stable inflation – is now 2.5 per cent. The implication is that rates need to climb another 150 bps, or more, to get inflation on track long-term.
https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-canada-interest-rate-increase-affect-mortgage/
The Globe and Mail
Mortgage Rundown: After this week’s Bank of Canada rate increase, how high could mortgage rates climb?
If you’re one of the few million floating-rate borrowers out there, you’re undoubtedly wondering when this all ends
Bank of Canada says some Canadian could see mortgage payments jump by 45% in 2025-26 as rates rise https://flip.it/CQNrji
flip.it
Bank of Canada says some Canadians could see mortgage payments jump by 45% in 2025-26 as rates rise
OTTAWA — Some Canadians who took out mortgages in 2020-21 could see their monthly payments jump by as much as 45 per cent in 2025-26, given rising rates, according to a Bank of Canada scenario …
Toronto home sales fall 41% as borrowing costs weigh | Financial Post
About 6,474 homes changed hands last month, down from 11,053 during the prior June, the Toronto Regional Real Estate Board said. June sales were also down compared to May.
The average home price in the region stretched to $1,146,254 last month, a roughly five per cent increase from June 2021. June’s average was an almost six per cent drop from May 2022.
The year-over-year increases in prices were seen across every category of housing and stretched to areas surrounding Toronto.
Average prices in the 416 — a nickname for the City of Toronto that excludes its suburbs — reached $1,737,012 for detached homes, $1,027,050 for townhouses and $771,267 for condos.
In suburban regions of the GTA, known as the 905, the average price was more than $1,361,862 for a detached home, $906,311 for a townhouse and $692,598 for a condo.
As prices crept up from June 2021, real estate agents have noticed many have held off listing their properties, preferring to wait for the market to turn again.
The number of properties listed during June was almost unchanged from last year, the board found.
New listings rose by one per cent to 16,347 last month from June 2021. They also dropped 12 per cent from May 2022.
https://financialpost.com/real-estate/toronto-home-sales-down-41-per-cent-from-june-2021-real-estate-board
About 6,474 homes changed hands last month, down from 11,053 during the prior June, the Toronto Regional Real Estate Board said. June sales were also down compared to May.
The average home price in the region stretched to $1,146,254 last month, a roughly five per cent increase from June 2021. June’s average was an almost six per cent drop from May 2022.
The year-over-year increases in prices were seen across every category of housing and stretched to areas surrounding Toronto.
Average prices in the 416 — a nickname for the City of Toronto that excludes its suburbs — reached $1,737,012 for detached homes, $1,027,050 for townhouses and $771,267 for condos.
In suburban regions of the GTA, known as the 905, the average price was more than $1,361,862 for a detached home, $906,311 for a townhouse and $692,598 for a condo.
As prices crept up from June 2021, real estate agents have noticed many have held off listing their properties, preferring to wait for the market to turn again.
The number of properties listed during June was almost unchanged from last year, the board found.
New listings rose by one per cent to 16,347 last month from June 2021. They also dropped 12 per cent from May 2022.
https://financialpost.com/real-estate/toronto-home-sales-down-41-per-cent-from-june-2021-real-estate-board
financialpost
Toronto home sales fall 41% as borrowing costs weigh
It's going to be a cool summer for real estate in Canada's biggest city, says TRREB
#Mortgage rates in the US posted the biggest one-week decline since 2008. The average for a 30-year loan fell to 5.3%, the lowest in a month and down from 5.7% last week, Freddie Mac.
#realestate #realestatenews
https://lnkd.in/gqNNrN3Q.
#realestate #realestatenews
https://lnkd.in/gqNNrN3Q.
BNN
US Mortgage Rates Plunge to 5.3% in Biggest Drop Since 2008
Mortgage rates in the US posted the biggest one-week decline since 2008.
The aggregate price of a home in the Greater Toronto Area increased 12.8 per cent year-over-year to $1,167,000 in the second quarter of 2022. On a quarterly basis, the aggregate price of a home in the GTA decreased 8.1 per cent in the second quarter, after reaching record year-over-year highs in Q1. This is the first quarterly decline in the region since Q1 of 2018.
Broken out by housing type, the median price of a single-family detached home increased 10.5 per cent to $1,437,600, while the median price of a condominium increased 17.3 per cent year-over-year to $738,800 in the second quarter of 2022.
“The city of Toronto and the greater region, along with many secondary cities in the Golden Horseshoe, have seen housing demand slow in recent months as many buyers take a step back in an attempt to time the market,” said Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd. “Buyer behaviour has shifted. They are in a wait-and-see pattern, assessing the impact of further expected interest rate hikes and rising inflation. For the first time since the start of the pandemic, the real estate market is experiencing a more normal summer slowdown in activity.”
Yolevski noted that the softening market is providing a rare opportunity to first-time buyers who have been unable to transact over the last two years. It’s also creating an opportunity for renters who are considering buying, as purchasing has become slightly more attractive.
“We’ve reached a tipping point for renters, as rental rates continue to increase and inventory in the resale market rises,” said Yolevski. “Those who are able to save enough of a down payment may feel they have more choice in today’s market.”
In the city of Toronto, the aggregate price of a home increased 11.7 per cent year-over-year to $1,245,600 in the second quarter of 2022. During the same period, the median price of a single-family detached home increased 9.3 per cent to $1,694,900, while the median price of a condominium increased 6.8 per cent to $742,600.
“The fundamentals of Toronto’s housing market have not changed. While inventory has been creeping up due to consumers moving to the sidelines, the housing supply crisis in Toronto remains a significant long-term challenge,” said Yolevski.
Yolevski expects that prices will remain flat through the remainder of 2022.
Royal LePage is forecasting that the aggregate price of a home in the Greater Toronto Area will increase 3.0 per cent in the fourth quarter of 2022, compared to the same quarter last year. The previous forecast has been revised downward, as a result of softening demand due to more aggressive than expected interest rate hikes by the Bank of Canada.
Broken out by housing type, the median price of a single-family detached home increased 10.5 per cent to $1,437,600, while the median price of a condominium increased 17.3 per cent year-over-year to $738,800 in the second quarter of 2022.
“The city of Toronto and the greater region, along with many secondary cities in the Golden Horseshoe, have seen housing demand slow in recent months as many buyers take a step back in an attempt to time the market,” said Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd. “Buyer behaviour has shifted. They are in a wait-and-see pattern, assessing the impact of further expected interest rate hikes and rising inflation. For the first time since the start of the pandemic, the real estate market is experiencing a more normal summer slowdown in activity.”
Yolevski noted that the softening market is providing a rare opportunity to first-time buyers who have been unable to transact over the last two years. It’s also creating an opportunity for renters who are considering buying, as purchasing has become slightly more attractive.
“We’ve reached a tipping point for renters, as rental rates continue to increase and inventory in the resale market rises,” said Yolevski. “Those who are able to save enough of a down payment may feel they have more choice in today’s market.”
In the city of Toronto, the aggregate price of a home increased 11.7 per cent year-over-year to $1,245,600 in the second quarter of 2022. During the same period, the median price of a single-family detached home increased 9.3 per cent to $1,694,900, while the median price of a condominium increased 6.8 per cent to $742,600.
“The fundamentals of Toronto’s housing market have not changed. While inventory has been creeping up due to consumers moving to the sidelines, the housing supply crisis in Toronto remains a significant long-term challenge,” said Yolevski.
Yolevski expects that prices will remain flat through the remainder of 2022.
Royal LePage is forecasting that the aggregate price of a home in the Greater Toronto Area will increase 3.0 per cent in the fourth quarter of 2022, compared to the same quarter last year. The previous forecast has been revised downward, as a result of softening demand due to more aggressive than expected interest rate hikes by the Bank of Canada.
Statistics Canada announced this morning that the Consumer Price index jumped to 8.1% year over year in June, following a 7.7% gain in May, and marking the largest yearly change since 1983.
Canada Inflation Quickens to 8.1%, Keeping Up Rate Pressure https://www.bloomberg.com/news/articles/2022-07-20/canada-inflation-rises-weaker-than-expected-8-1-in-june
Bloomberg.com
Canada Inflation Quickens to 8.1%, Keeping Up Rate Pressure
Consumer price inflation accelerated in June to the highest level since January 1983, maintaining pressure on the Bank of Canada to continue delivering aggressive interest rate hikes.
The red-hot U.S. housing market that has enriched property-owners in recent years while draining renters and first-time home buyers is showing signs of slowing down, according to new data.
https://www.linkedin.com/posts/steve-talakoub-2664ab170_rents-and-home-prices-still-soaring-but-activity-6959910797598752768-jh2F
https://www.linkedin.com/posts/steve-talakoub-2664ab170_rents-and-home-prices-still-soaring-but-activity-6959910797598752768-jh2F
Linkedin
Steve Talakoub on LinkedIn: Rents and home prices are still soaring, but at a slower pace
The red-hot U.S. #housing market that has enriched #property-owners in recent years while draining renters and first-time #homebuyers is showing signs of…
The Greater Toronto Area (GTA) condominium apartment market followed a similar trend to the housing market as a whole in Q2 2022. With 5,687 sales, the Q2 result represented a decline of 35.2 per cent compared to Q2 2021. Over the same period, new listings remained flat at 14,316. With sales accounting for a lower share of listings, active listings at the end of the quarter were up by 27.5 per cent to 5,210.
https://www.trreb.ca/files/news_releases/news2022/nr_condo_report_Q2-2022.pdf
https://www.trreb.ca/files/news_releases/news2022/nr_condo_report_Q2-2022.pdf