This Week’s Top Stories: Canada’s 2008-Style Housing Crash, and Rising Borrowing Rates

Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Housing Crash Rivals US In 2008, But The Pain Is Hidden: BMO The Canadian housing crash now rivals the US in 2008, with prices falling for nearly 5 years. However, unlike the US crash, Canada’s economy appears to have avoided most of the negatives. The country’s economy grew 1.7% annually over the four years, helped by stronger borrowers and rate cuts. Strong headline data is hiding the true impact, warns BMO Capital Markets. That strong GDP growth is actually negative when adjusted per capita. Meanwhile, resilient consumption is due to a reliance on seniors, who aren’t impacted by a rise in unemployment so sharp it’s rarely seen outside of recessions. The economy is in turmoil, the optics are just focused on the wrong areas. Continue Reading… Canadian Real Estate Spent 5 Years Wiping Out Just 13 Months of Gains Canadian home prices fell 0.9% (-$5.7k) to $651,400 in September, 22.5% (-$189k) lower than the March 2022 peak. Home prices are now down to February 2021 levels, a timeline worth some attention. The painful market correction that’s lasted almost 5 years has only managed to wipe out 13 month...