The picture in the Canadian housing market continues to deteriorate.
Even with the BOC starting to pivot, the hawkish tone at the Fed and other global central banks is going to keep the pressure on global rates. Variable rate mortgages that reset monthly are popular in Canada and even fixed resets are on 5-year terms, so the pain continues to mount in one of the most-overpriced markets in the world.
Today, Teranet and National Bank report that prices fell another 1.3% in November, after a 0.8% in October in the fifth consecutive decline in the index of the 11-largest cities.
Prices are now down 8.96% from the peak and that sounds fanciful to me. In year-over-year terms, prices are up 2.03%.
This is an interesting chart from National Bank showing that more than 1 in 5 active listings in Canada are cancelled. Those are hidden sellers and some might be forced to sell in time.
