NEW What Canada is doing about the toxic forever chemicals in drinking water
As the United States sets its first national limits on toxic forever chemicals in drinking water, researchers say Canada is lagging when it comes to regulations.
The Bank of Canada's decision to delay a rate hike for five more weeks will add fuel to Canada's scorching housing market as buyers scramble to clinch deals before borrowing costs rise, realtors said.
The Bank of Canada held its overnight rate at a record low 0.25% on Wednesday, but warned multiple increases would be coming soon. The U.S. Federal Reserve separately also said it would start hiking soon.
"Any hint of interest rate increases, any hint that it's about to go up, makes people nervous," said Lisa Bednarski, a Toronto real estate agent. "They want to buy before their buying power diminishes."
Canada's housing market has been on a tear throughout much of the pandemic, with prices up 39% nationwide from February 2020 to December 2021. In November and December alone, home prices jumped 4.5%, compared with a 3.7% gain in all of 2019.
Forecasts are mixed for 2022, with the Royal Bank of Canada seeing home prices up 3% this year and brokerage Royal LePage forecasting a 10.5% gain.
While the early rush was mostly end users seeking out larger properties with space for offices, gyms and living, by mid-2021 investors had taken hold of the market, according to agents. A recent Bank of Canada study found investors now account for more than 20% of home purchases.
Supply, meanwhile, has reached historic lows, realtors say.
With few options on the market, many end users are holding back - especially current owners who already have a foothold in the market, said real estate agent Peter Kiriazopoulos.
Investors are another story.
"My investor clients - they're not too picky," said Kiriazopoulos, who sells in Toronto's suburbs. "They just want to move so they can close at a lower interest rate."
Right now, a typical Toronto area home may have 15 buyers putting in offers. A hike would have cut that by a third, said mortgage broker Ron Butler. Instead, all those bidders will be ready with their best offer for another five weeks, he said.
"It is a little sprinkle of lighter fluid," said Butler. “In the psychology of the public, it’s a moment of relief.”
The Bank of Canada acknowledged low interest rates play a role in home-price escalation, along with increased investor interest, but suggested the solution was outside their policy mandate.
"The bank's view is that the most important thing that will restore balance to the housing market in Canada is an increase in supply," Senior Deputy Governor Carolyn Rogers told reporters on Wednesday. "Supply has not kept pace with demand."
But some economists disagree. Derek Holt, head of capital markets economics with Scotiabank, expects prices to surge again over the next few weeks until the Bank hikes, likely on March 2.
"The Bank of Canada seems to be dramatically downplaying the role of easy money as a contributor to hot housing markets," Holt said.
As the United States sets its first national limits on toxic forever chemicals in drinking water, researchers say Canada is lagging when it comes to regulations.
Calgary police have arrested a man and a charge is pending in connection with the death of a toddler in 2022.
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Scientists say it's highly unlikely cloud seeding is responsible for the heavy rains that have caused flooding in the United Arab Emirates this month, and that climate change is the more likely culprit.
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
When Les Robertson was walking home from the gym in North Vancouver's Lower Lonsdale neighbourhood three weeks ago, he did a double take. Standing near a burrow it had dug in a vacant lot near East 1st Street and St. Georges Avenue was a yellow-bellied marmot.
A moulting seal who was relocated after drawing daily crowds of onlookers in Greater Victoria has made a surprise return, after what officials described as an 'astonishing' six-day journey.
Just steps from Parliament Hill is a barber shop that for the last 100 years has catered to everyone from prime ministers to tourists.
A high score on a Foo Fighters pinball machine has Edmonton player Dave Formenti on a high.
A compound used to treat sour gas that's been linked to fertility issues in cattle has been found throughout groundwater in the Prairies, according to a new study.
While many people choose to keep their medical appointments private, four longtime friends decided to undergo vasectomies as a group in B.C.'s Lower Mainland.
A popular highway in Alberta's Banff National Park now has a 'no stopping zone' to help protect two bears.
B.C. resident Robert Conrad spent thousands of hours on Crown land developing an unusual bond with deer.
A Sudbury woman said her husband was bringing the recycling out to the curb Wednesday night when he had to make a 'mad dash' inside after seeing a bear.