Inflation dished up another nasty surprise. Other costs jumped too. Gasoline didn’t help. This was a broad-based mess.
The Home Price Benchmark Index is down 13% from peak in March 2022. The Canadian housing market is in a category of its own, in terms of craziness.
The BoC already shed 50% of its QE assets, and the shedding continues.
Short-term yields spiked, and mortgage rates with them: First results of the Bank of Canada’s unpause on the housing market.
China still produced more than the rest of the world combined, 12 times more than the US.
More rate hikes are on the table. “Overall, excess demand in the economy looks to be more persistent than anticipated.”
It unwound 46% of all assets it had added during the pandemic. Far more aggressive QT than the Fed’s.
Prices rose in March, but are down 17.5% year-over-year, the second-worst in the data. Sales -34% year-over-year.
Year-over-year, home prices plunged by the most on record as the seasonal uptick in prices was far smaller than a year ago.
Hangover after a drunken party instigated by the Bank of Canada’s money-printing and interest-rate repression that turned buyers’ brains to mush.