Detached home prices increases in 2024
The RE/MAX Hot Pocket Communities Report surveyed 83 markets in the Greater Toronto and Vancouver areas and BC's Fraser Valley area and found that close to 40% of markets reported an increase in detached housing values in the first half of 2024. Another 30% reported an upswing in the number of sales. "While affordability remains the top obstacle for first-time homebuyers, more experienced buyers and investors are taking advantage of softer housing values, making their moves ahead of the Bank of Canada's (BoC) end to quantitative tightening," RE/MAX President, Christopher Alexander, said. "Pent-up demand continues to build, with an estimated 20,000 to 25,000 buyers currently lying in wait in the GTA, and another 5,000 buyers in the Greater Vancouver area ready to pull the trigger. The first interest rate cut in June did little to incentivize buyers, but early indications show the second may have struck a nerve." The Greater Toronto Area's 416 area code led the other regions in rebounding sales momentum, with just over 34% of neighbourhoods stable or experiencing growth in detached home-buying activity — ahead of the 905, Greater Vancouver and Fraser Valley.
The RE/MAX Hot Pocket Communities Report surveyed 83 markets in the Greater Toronto and Vancouver areas and BC's Fraser Valley area and found that close to 40% of markets reported an increase in detached housing values in the first half of 2024. Another 30% reported an upswing in the number of sales. "While affordability remains the top obstacle for first-time homebuyers, more experienced buyers and investors are taking advantage of softer housing values, making their moves ahead of the Bank of Canada's (BoC) end to quantitative tightening," RE/MAX President, Christopher Alexander, said. "Pent-up demand continues to build, with an estimated 20,000 to 25,000 buyers currently lying in wait in the GTA, and another 5,000 buyers in the Greater Vancouver area ready to pull the trigger. The first interest rate cut in June did little to incentivize buyers, but early indications show the second may have struck a nerve." The Greater Toronto Area's 416 area code led the other regions in rebounding sales momentum, with just over 34% of neighbourhoods stable or experiencing growth in detached home-buying activity — ahead of the 905, Greater Vancouver and Fraser Valley.
Equitable Bank launches new construction loan
Equitable Bank has introduced the Laneway House Mortgage, a construction loan to help Canadian homeowners finance the building of laneway homes or garden suites on their property. The loan product is initially available in the Greater Toronto Area, Greater Vancouver Area and Calgary. "Making efficient use of space in cities as Canadians' housing needs evolve is more important than ever. The Laneway House Mortgage provides a critical solution that can help support urban densification and create additional income streams amid affordability challenges, while also allowing homeowners to stay in place," said Mahima Poddar, Equitable Bank’s senior vice-president and group head of personal banking. "Canadians work hard, and they deserve a good home to come back to at the end of the day – one that's within the communities they love. Equitable Bank is proud to continue playing a lead role in financing projects that support housing accessibility in Canadian cities." The loan allows homeowners to expand their living space or gain an additional source of rental income, while also aiding in bringing housing density to urban centres.
Equitable Bank has introduced the Laneway House Mortgage, a construction loan to help Canadian homeowners finance the building of laneway homes or garden suites on their property. The loan product is initially available in the Greater Toronto Area, Greater Vancouver Area and Calgary. "Making efficient use of space in cities as Canadians' housing needs evolve is more important than ever. The Laneway House Mortgage provides a critical solution that can help support urban densification and create additional income streams amid affordability challenges, while also allowing homeowners to stay in place," said Mahima Poddar, Equitable Bank’s senior vice-president and group head of personal banking. "Canadians work hard, and they deserve a good home to come back to at the end of the day – one that's within the communities they love. Equitable Bank is proud to continue playing a lead role in financing projects that support housing accessibility in Canadian cities." The loan allows homeowners to expand their living space or gain an additional source of rental income, while also aiding in bringing housing density to urban centres.
Investments in Canadian fintech hit new high
According to KPMG International’s H1’24 Pulse of Fintech report, a record USD$7.8 billion was invested in Canadian fintechs in the first six months of 2024, up more than seven-fold from last year's full-year total of USD$1.1 billion. Private equity investments into two Montréal-based fintechs – Nuvei Corp. and Plusgrade Inc. – accounted for as much as 94% of the total value invested in Canada, and were also among the biggest five deals globally. "These two Canadian deals – among the biggest in the world – reflect the growing fintech ecosystem in Montréal and Quebec more broadly, where the startup scene is thriving thanks to support from institutional investors, and world-class universities are providing a steady stream of talent," said Georges Pigeon, a partner in KPMG in Canada's deal advisory practice in Montréal who specialises in financial services. Excluding those two deals, total investment was USD$516.8 million, down 26% from the USD$696 million invested in the second half of last year, and up nearly 20% from the USD$434.2 million invested in the first half of 2023.
According to KPMG International’s H1’24 Pulse of Fintech report, a record USD$7.8 billion was invested in Canadian fintechs in the first six months of 2024, up more than seven-fold from last year's full-year total of USD$1.1 billion. Private equity investments into two Montréal-based fintechs – Nuvei Corp. and Plusgrade Inc. – accounted for as much as 94% of the total value invested in Canada, and were also among the biggest five deals globally. "These two Canadian deals – among the biggest in the world – reflect the growing fintech ecosystem in Montréal and Quebec more broadly, where the startup scene is thriving thanks to support from institutional investors, and world-class universities are providing a steady stream of talent," said Georges Pigeon, a partner in KPMG in Canada's deal advisory practice in Montréal who specialises in financial services. Excluding those two deals, total investment was USD$516.8 million, down 26% from the USD$696 million invested in the second half of last year, and up nearly 20% from the USD$434.2 million invested in the first half of 2023.
Canadian economy sees modest rebound in Q1
Despite an interest rate cut in June — the first in years — and July, the overall Canadian economic sentiment continues to be subdued. A forecast report recently released by TD shows that Canada's economic momentum is trending up, but in a decidedly subdued way. Apparently, indebted consumers are still adjusting to the rapid increase in debt and living costs over the last 12 months. Still, the three-month moving average for core inflation rates fell from 2.91% in June to 2.71% in July, according to Bloomberg calculations. There is an expectation that core inflation rates will continue to stay low and this gives Bank of Canada policymakers a clear path to proceed with another 25 basis point cut on September 4, 2024. (To be clear, 1% equals 100 basis points.) While the most recent rate cuts didn't provide the boost many consumers and businesses were hoping for, it doesn't mean these cuts to borrowing costs aren't welcome — with additional rate drops both expected and desired by most Canadians.
Despite an interest rate cut in June — the first in years — and July, the overall Canadian economic sentiment continues to be subdued. A forecast report recently released by TD shows that Canada's economic momentum is trending up, but in a decidedly subdued way. Apparently, indebted consumers are still adjusting to the rapid increase in debt and living costs over the last 12 months. Still, the three-month moving average for core inflation rates fell from 2.91% in June to 2.71% in July, according to Bloomberg calculations. There is an expectation that core inflation rates will continue to stay low and this gives Bank of Canada policymakers a clear path to proceed with another 25 basis point cut on September 4, 2024. (To be clear, 1% equals 100 basis points.) While the most recent rate cuts didn't provide the boost many consumers and businesses were hoping for, it doesn't mean these cuts to borrowing costs aren't welcome — with additional rate drops both expected and desired by most Canadians.
Scotiabank expands Children's Aid program
Scotiabank announced renewed support for the Children's Aid Foundation of Canada to expand its Stay in School program across the nation. The $900,000, three-year investment will help 1,600 youth currently in Canada's child welfare system, to maintain their participation in high school and help them graduate and move on to higher education. "We are pleased to continue to partner with Children's Aid Foundation of Canada to provide young people with the support they need to overcome barriers to graduation," said Meigan Terry, senior vice-president and chief sustainability, social impact and communications officer at Scotiabank. "Through our ScotiaRISE social impact initiative, we are focused on supporting initiatives like the Stay in School program, reflecting our commitment to improving the lives of young people by empowering them to further their education." The program provides access to tools and resources including tutoring, mentoring, technology, transportation, extra-curricular school activities and scholarships that help further educational experiences.
Scotiabank announced renewed support for the Children's Aid Foundation of Canada to expand its Stay in School program across the nation. The $900,000, three-year investment will help 1,600 youth currently in Canada's child welfare system, to maintain their participation in high school and help them graduate and move on to higher education. "We are pleased to continue to partner with Children's Aid Foundation of Canada to provide young people with the support they need to overcome barriers to graduation," said Meigan Terry, senior vice-president and chief sustainability, social impact and communications officer at Scotiabank. "Through our ScotiaRISE social impact initiative, we are focused on supporting initiatives like the Stay in School program, reflecting our commitment to improving the lives of young people by empowering them to further their education." The program provides access to tools and resources including tutoring, mentoring, technology, transportation, extra-curricular school activities and scholarships that help further educational experiences.
Managers agree productivity in Canada is up
A new survey from talent solutions and business consulting firm, Robert Half, reveals nearly 7 in 10 managers (68%) believe there’s been an increase in productivity compared to one year ago. At the same time, some professionals indicate they are putting in longer work hours, raising concerns about burnout, decreased morale and turnover. "Increased productivity is very positive news for managers, businesses and professionals alike," said Koula Vasilopoulos, senior managing director of Robert Half Canada. "Businesses who maintain necessary staffing levels, adopt new technologies and invest in learning and development training for their staff see the benefits in increased engagement and productivity. However, this needs to be balanced with a positive work environment including reasonable hours and flexibility, as working longer hours and not establishing work-life balance can quickly offset productivity gains through burnout and turnover." By comparison, 21% of managers report no change in productivity, while only 11% have reported a decreased productivity on their teams.
A new survey from talent solutions and business consulting firm, Robert Half, reveals nearly 7 in 10 managers (68%) believe there’s been an increase in productivity compared to one year ago. At the same time, some professionals indicate they are putting in longer work hours, raising concerns about burnout, decreased morale and turnover. "Increased productivity is very positive news for managers, businesses and professionals alike," said Koula Vasilopoulos, senior managing director of Robert Half Canada. "Businesses who maintain necessary staffing levels, adopt new technologies and invest in learning and development training for their staff see the benefits in increased engagement and productivity. However, this needs to be balanced with a positive work environment including reasonable hours and flexibility, as working longer hours and not establishing work-life balance can quickly offset productivity gains through burnout and turnover." By comparison, 21% of managers report no change in productivity, while only 11% have reported a decreased productivity on their teams.
Canadian housing starts stronger in July
The trend in Canadian housing starts rose 3.2% from 247,840 units in June to 255,783 units in July. Measurement of the trend is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada. “Residential construction activity remains sturdy in Canada despite the clear slowdown in the resale market. The fact that such a cyclical component of the economy hasn’t buckled under sharply higher borrowing costs suggests that the more structural forces still at play are outweighing some pockets of weakness,” writes Robert Kavcic, a BMO senior economist and director of economics in a report on the housing starts. This makes for an annualized rate of 279,500 – the highest since June 2023.
The trend in Canadian housing starts rose 3.2% from 247,840 units in June to 255,783 units in July. Measurement of the trend is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada. “Residential construction activity remains sturdy in Canada despite the clear slowdown in the resale market. The fact that such a cyclical component of the economy hasn’t buckled under sharply higher borrowing costs suggests that the more structural forces still at play are outweighing some pockets of weakness,” writes Robert Kavcic, a BMO senior economist and director of economics in a report on the housing starts. This makes for an annualized rate of 279,500 – the highest since June 2023.
Flash flooding caused $940 million in damage
Intense flash flooding that occurred in Toronto and other parts of southern Ontario between July 15 and 16 is estimated to have caused over $940 million in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc, a Toronto-based subsidiary of Zurich-based PERILS AG that provides detailed analytical and meteorological information on Canadian natural and human-made catastrophes. "The insurance industry has long warned that severe weather events are becoming more frequent and intense. This summer is, unfortunately, proving that statement is correct," said Amanda Dean, Ontario and Atlantic vice-president of the Insurance Bureau of Canada (IBC). "This summer, Canada's insurers have been simultaneously supporting customers impacted by the Toronto floods, the Calgary hailstorm, the Jasper wildfire and flooding across Quebec. The insurance industry is on the ground in Ontario, Alberta and Quebec, assisting customers as they put their lives back together. The emotional distress that these events have caused thousands of Canadians cannot be overlooked." Because of the amount of severe weather events over the last month, the IBC is calling on the government to commit more resources to the National Flood Insurance Risk Program.
Intense flash flooding that occurred in Toronto and other parts of southern Ontario between July 15 and 16 is estimated to have caused over $940 million in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc, a Toronto-based subsidiary of Zurich-based PERILS AG that provides detailed analytical and meteorological information on Canadian natural and human-made catastrophes. "The insurance industry has long warned that severe weather events are becoming more frequent and intense. This summer is, unfortunately, proving that statement is correct," said Amanda Dean, Ontario and Atlantic vice-president of the Insurance Bureau of Canada (IBC). "This summer, Canada's insurers have been simultaneously supporting customers impacted by the Toronto floods, the Calgary hailstorm, the Jasper wildfire and flooding across Quebec. The insurance industry is on the ground in Ontario, Alberta and Quebec, assisting customers as they put their lives back together. The emotional distress that these events have caused thousands of Canadians cannot be overlooked." Because of the amount of severe weather events over the last month, the IBC is calling on the government to commit more resources to the National Flood Insurance Risk Program.
Gen Z is driving a surge in mobile wallet usage
Pocketbooks and wallets are being replaced with mobile wallets and digital cards. Almost 7 in 10 Gen Z adults (69%) use a mobile wallet and 63% of Gen Z shoppers prefer to leave their physical wallet at home for short trips, according to a recent Interac survey. "Choosing your default payment method may feel like a small step, but it can play a big role in shaping Canadians' ongoing spending habits," said Glenn Wolff, Interac’s group head and chief client officer. "When consumers tap to pay with their phones, the decision to select a card from the digital wallet is easy to miss. Canadians could end up unintentionally using a default payment method that prompts them to take on more debt. This differs from traditional physical wallets where the consumer had to select the card they wanted to use each time." Gen Z's use of mobile spending outpaces all other generations including millennials (60%), Gen X (44%), baby boomers (27%) and those older than 75, known as the silent generation (10%).
Pocketbooks and wallets are being replaced with mobile wallets and digital cards. Almost 7 in 10 Gen Z adults (69%) use a mobile wallet and 63% of Gen Z shoppers prefer to leave their physical wallet at home for short trips, according to a recent Interac survey. "Choosing your default payment method may feel like a small step, but it can play a big role in shaping Canadians' ongoing spending habits," said Glenn Wolff, Interac’s group head and chief client officer. "When consumers tap to pay with their phones, the decision to select a card from the digital wallet is easy to miss. Canadians could end up unintentionally using a default payment method that prompts them to take on more debt. This differs from traditional physical wallets where the consumer had to select the card they wanted to use each time." Gen Z's use of mobile spending outpaces all other generations including millennials (60%), Gen X (44%), baby boomers (27%) and those older than 75, known as the silent generation (10%).
45% of Canadians feel impact of rising prices
According to Statistics Canada data, 45% of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses in the first few months of 2024. Turns out the percentage of Canadians feeling the pinch rose in the last few years, from 33% of Canadians feeling the pinch in 2022 to 45% in 2024. “This extended period of financial strain can also negatively impact mental health," explain the report authors. For instance, when asked about financial-related stress in spring 2024, more than a third (35%) of Canadians described most days as "quite a bit" or "extremely stressful due to financial issues."
According to Statistics Canada data, 45% of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses in the first few months of 2024. Turns out the percentage of Canadians feeling the pinch rose in the last few years, from 33% of Canadians feeling the pinch in 2022 to 45% in 2024. “This extended period of financial strain can also negatively impact mental health," explain the report authors. For instance, when asked about financial-related stress in spring 2024, more than a third (35%) of Canadians described most days as "quite a bit" or "extremely stressful due to financial issues."
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