Chart Week 2022: The price of housing is ballooning; and demand is up but construction is down
of $241K. Renewals in 2023 are forecast to see rate increases of about 45 bps, or around $65, in additional monthly payments. While no one wants to pay more on their mortgage, Canadian borrowers are set to absorb higher rates: under federally mandated stress tests, they had to show that they could cope with rates around 180 bps higher when they contracted mortgages nearly five years ago on larger principals.
This chart shows that house prices in Toronto, Vancouver and nationally have grown about 4.25 to almost five times, with household debt keeping pace. That rate of increase is above seven per cent per year. Yet, the CPI measurement of housing costs known as “shelter” has only inched ahead, growing by about 1.6 times. Most of the time that growth has been less than two per cent per year.
Amid the many staggering economic statistics that emerged from the pandemic, this may be the most staggering: in the first three quarters of 2021, residential construction accounted for a larger share of Canadian GDP than did business investment. That has never happened before, not even close.
That’s what’s happening with real estate. From April 2020 to October 2021, Canada saw about 246,500 excess home sales above the trend. In contrast, new listings came in higher, but just 85,800 homes above trend—far lower than the boost in home sales.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The world could consume more oil in 2022 than ever beforeHere's a reality check: The world could consume more oil in 2022 than ever before.
Read more »
Beset by crises, question looms whether Trudeau will consider an early exit in 2022With Trudeau about to turn 50 on Christmas Day, some Liberals believe the coming year will be the one in which he decides he’s had enough
Read more »
Three players to watch on every team at the 2022 World Junior Championship - Sportsnet.caWith the 2022 World Junior Championship beginning on Boxing Day, Sportsnet’s Sam Cosentino takes a look at some must-see talent in the tournament. Three Players to Watch on each team. 👇
Read more »
U.S. faces tough choices in 2022 on mines for electric-vehicle metalsThe United States has enough reserves of lithium, copper and other metals to build millions of its own electric vehicles, but rising opposition to new mines may force the country to rely on imports and delay efforts to electrify the nation's automobiles.
Read more »
NHL officially withdraws from 2022 Winter Olympics amid rising COVID-19 casesBreaking News: The NHL has officially announced that, amid rising cases of COVID-19 across the league, players will no longer be participating in February's Winter Olympics in Beijing.
Read more »