Time for your weekly cheat sheet on this week’s top stories.
Canadian Real Estate
Canada went all in on home sales to the point where excess home sales are now 6% of its GDP. Existing-home sales reached $500 billion in annualized sales in October. BMO estimates this is $150 billion worth of excess demand, driving prices higher. It should stop as soon as the central bank wants it to stop, said the Big Six bank.
Canadian home prices are generally overpriced, according to a credit rating giant. Moody’s latest models show urban cities are 22.6% overvalued. After the massive climb this year, they don’t expect an encore to follow next year. Average annual growth is forecast to be just 1.3% over the next two years. Provinces that have seen slow growth (such as Alberta) are…