“In both provinces, real estate and mortgage debt make a disproportionately large share of total household assets compared to other provinces,” writes BMO Economist Robert Kavcic.Under the weight of interest rate hikes, Canadian housing softened remarkably this summer, and one economist cautions that markets will continue to “struggle” into 2024.
“Now, deepening bond-market selloffs have five-year GoC yields pushing 16-year highs. That leaves the lowest available mortgage rate today more than 100 bps higher than the lowest that was available in the spring,” he says. “Both provinces carry above-average household leverage and exposure to real estate, while Ontario was unquestionably the frothiest market during the boom. British Columbia’s household debt-to-disposable income ratio is the highest in Canada at just under 220%, while Ontario is second at 206% ,” he writes.
“Quebec and Atlantic Canada carry relatively low exposure by these measures . And, while Alberta carries above-median readings, market conditions in that province also suggest much less risk,” says Kavcic.The Vancouver Centre II, 320 Granville, The Stack, The Post, and Bentall 6 office buildings have all recently or will soon be completed.