Is there correlation between prices in residential and commercial real estate markets?

Is there correlation between prices in residential and commercial real estate markets? The simplest answer is affirmative: since prices in both residential and commercial real estate are controlled by identical supply and demand drivers, they are correlated. Low interest rates, low unemployment, increased trade, population growth, and stagnated innovation in transportation technology are some of […]

A government experiment in intervention: Views of the current real estate market

The Bank of Canada‘s January 2018 Monetary Policy Report and November 2017 Financial System Review both highlight the impact of recent government interventions on the country’s hottest housing markets – those of greater Vancouver and Toronto. In many respects, announced interventions have effectively signalled the government’s need to address the risks of inflated residential real […]

The economy in general: A Bank of Canada perspective

The January 2018 Bank of Canada (“BOC”) Monetary Policy Report announced strong growth in the Canadian economy during 2017, including near-capacity levels of economic activity.[1] By their estimates, GDP growth came in at around 3% for 2017 with approximately 70% of that growth derived from domestic consumption – a historically normal level of household consumption […]