National Bank’s monthly update on the housing market contains a lot of details on how it’s slowing but then notes that all 11 major markets saw price increases,
“On a seasonally adjusted basis, home sales decreased 4.1% from July to August, a second monthly contraction in a row following the renewed monetary tightening cycle of the Bank of Canada. On the supply side, new listings increased 0.8% in August, a fifth consecutive monthly increase.
According to BofA Securities credit strategist Yuri Seliger, however, the situation is now being resolved in a much more positive way, “So far in 2023 net upgrades from BBB to single-A have reached $100bn – the highest since at least 2010 and twice the previous record high of $50bn reached in 2019 . This upgrade cycle is the reflection of companies shoring up their balance sheets ahead of a potential recession, originally expected for this year.
“Increasing yield losses are anticipated due to the direct impacts of extreme temperatures and precipitation on crop growth. By midcentury, the Southern and Midwest states are poised to be the hardest hit, with more frequent droughts expected. At the same time warmer winters will facilitate invasive pests, leading to a potential increase in destruction of 50% for wheat and 30% for maize as per University of Washington.