Canada: Housing market is back – NBF

Economists at the National Bank of Canada Financial markets summarize the situation of the Canadian housing market which has recovered since a year ago. USD/CAD is dealt at 1.325. 

Key quotes

“If you hadn’t noticed, Canada’s housing market is back. It’s amazing what a difference a year (or two) can make; as at December 2019, nation-wide resales had skied 22% above year-ago levels.”

“So while growth in consumer credit has downshifted sharply, a reinvigorated housing market has keyed a turnaround in mortgage credit growth. Particularly noteworthy has been the reported pick-up at Canada’s chartered banks, where B-20 regs had earlier produced a deeper chill.” 

“To summarize then, Canada is seeing a meaningful increase in mortgage lending, with almost all of it fixed-rate in nature. Those familiar with this subject matter understand that timing is important; few things in life are seemingly as seasonal as Canadian housing activity.”