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Every so often, someone sends me an article making the case that real estate isn’t a great investment compared to the stock market. The latest one came from the Globe and Mail. It argues that Canadian home prices haven’t grown as much as the stock market — specifically the S&P/TSX Index — since the 1980s. The author says that over the last 45 years, Canadian homes have gone up about
Paul Rocha
The Canada Mortgage and Housing Corporation (CMHC) has officially revised its long-standing housing affordability benchmark, quietly marking the end of any policy ambition to return to the affordability levels of 2004. According to its new report, CMHC will now use 2019 as the baseline year for housing affordability going forward. The change is more than symbolic — it represents a significant shift in how policymakers define what “affordable housing” means
Paul Rocha
The Bank of Canada Hit Pause — But Here’s What That Really Means for Rates, Housing, and the Economy
This week, the Bank of Canada (BoC) held its key interest rate steady at 2.75%. That’s the headline. But if you stop there, you’ll miss the bigger story — one that affects not only your mortgage rate, but also the future of housing affordability and the broader economy. Let’s break it all down in plain language. 1. Seven Rate Cuts Since 2024 — But That Trend May Be Over Between
Paul Rocha
2025: What Lies Ahead for the Real Estate Market? As the real estate industry steps into 2025, one question looms large: Will this be the year the market rebounds, or will challenges continue to cast uncertainty over the sector? After two years of record-low activity, there are reasons to believe 2025 could finally bring the long-awaited recovery. But there are also significant headwinds that could disrupt this momentum. Here’s a
Paul Rocha
As a homeowner, your property is likely one of your most significant investments. However, recent discussions around potential housing policy changes by our federal government, under the banner of "Fair Housing," could alter the landscape of the Canadian housing market in ways that directly impact you. These changes are being driven by a push to create a more equitable housing environment, particularly for younger Canadians and those trying to enter
Paul Rocha
Last week, I wrote about the looming Condo Crisis and the increased risks the Big 5 banks have taken on. Today, Canada is rolling out 30-year mortgages to “help” first-time buyers get into the market. But what's the real story here? Hint: It’s not about making homes affordable. But why offer this only to first-time home buyers and why only for new construction? Let's take a closer look: Investor Dynamics
Paul Rocha
Personalize Your Blog Reading Experience Choose your preferred content version Current Reading Level: Comprehensive Introduction: The landscape of Canadian homeownership has been experiencing tectonic shifts, primarily influenced by critical decisions from the Bank of Canada (BoC) and regulatory authorities. Intended to steady economic scales and rein in rampant inflation, these choices have had complex repercussions, particularly felt by the homeowner community. This context calls for a nuanced examination of recent
Paul Rocha
Personalize Your Blog Reading Experience Choose your preferred content version Current Reading Level: Comprehensive Introduction In the intricate ballet of economic strategies, interest rates have traditionally taken center stage, captivating audiences with their clear, sweeping impacts. But there's a subtle performer moving in the shadows, one that the Bank of Canada is increasingly turning to in these complex times: Quantitative Tightening (QT). This nuanced approach offers a stealthy counterbalance to
Paul Rocha
Personalize Your Blog Reading Experience Choose your preferred content version Current Reading Level: Comprehensive Introduction Navigating the financial landscape can be a daunting task, especially when markets behave unpredictably. Recently, we've witnessed a shake-up in the stock market and a rise in bond yields, stirring up discussions across Canada and the U.S. But there's a potential upside to this scenario, particularly for homeowners and prospective buyers monitoring mortgage rates. Understanding