Mortgage to income ratio
The ratio has gone from 115% to 105% despite the ongoing pandemic.
This is because of unprecedented government CERB support to the tune of $50bn
Hotels in NY at risk
4 out of 5 hotels are at risk according to a Bloomberg report.
Restaurants in Canada are also at risk with defaults up 50%. Thisforeshadows problems in 2021.
Immigration to play in 2021
Trudeau announced targets of 400,000 immigrants in 2021.
Immigrants typically buy homes within 2 years of arrival. This will putupward price pressure on Canadian housing.
For months, we’ve watched lenders slash five-year fixed mortgage rates to levels never seen before. But, we may have come to an inflection point.
National homes sales declined 0.7% in October from a month earlier, the Canadian Real Estate Association reported Monday. Benchmark prices rose 1% from September, bringing the gain since April to 7%.
As the pandemic worsened last month, the housing market put on a display of chunky double-digit price increases in cities across the country.
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