Bank of Canada Eyes Real Estate to Fuel Economic Growth: Karl Schamotta

#BankofCanada #CanadaRealEstate #canadianeconomy

The Bank of Canada is targeting Canada’s real estate market to stimulate the economy in 2025 amid some major economic uncertainties, according to Karl Schamotta, Chief Market Strategist at Corpay.

Links:

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[WhenInRomeToo]

Thanks for doing this. It’s nice to see someone paying attention who isn’t owned by a corporation or the government

[courtneybrown]

Why the f…is the bank of Canada focused on the housing market to fun the Canadian economy? We have so much resources in Canada.

[edubmf]

Finally we see someone saying the Fed sets the lower bound.
After seeing a million Canadians saying "the BoC won't let housing fall because boomers blah blah".
BoC don't set 5y rate boyz, whatchagonnado now?

[truecanadian]

Guess when your boss has crippled Canada's resource industries for 9 years and doubled the Canadian debt you have to grasp at straws in the hope for recovery.

[adamhero]

So in other words, they want to make rates very low again to get people to offer way more than they should for home purchase. What a great idea….
After such horrid economic policy over the last 5+ years, we need near 0% inflation (real inflation, not the government numbers) or better yet, a little deflation for a few years and lowering rate is not going to fix the issues we have been building up for the last many decades decades (greatly accelerated by Trudeau). We need wages to catch up before rates start going down. Otherwise rates will have to stay near zero forever or no one can afford anything.

[berry]

the worst is that we have incompetent leaders here in Canada and no real economy
you want to save the canadian Dollar - up the interest rate by min 0.5%

[sean]

Karl is one of the best economists in Canada

[mtrest]

Tiff Macklem is making a mess of the economy.

[JimmyHat-kt]

Great interview your on a roll Mark. Basically canada is screwed 😊

[bitpuff]

Just as you posted this, 5 year CA bond yields are almost up 2% on the day!

[JoseLopez-hpoo]

Tariffs combined with a weak currency is a 1-2 punch for household spending.

[deerango]

I sold my house last October (2023) and given the real estate situation, I made the decision to go with a 5 year fixed mortgage. I locked in at 5.5%.
I was anticipating that the market was going to go nuts ie rates and shortage of homes on market.

The market still looks very fluid and undecided.
I hope I made the right decision.
It's a bit like gambling in Vegas.

[hagbard]

Somewhat off topic, any opinions on the future of TD? Have too much with them, wondering if I should get out?

[allistairtrent]

Real estate is a great store of wealth but totally unproductive in terms of generating economic activity. Good luck

[Stormshfter]

Great guest.
He said everything I have been preaching for a year.
We don't decide the price of borrowing from inside our borders.
Monetary policy changes in Canada only reflect on fixed mortgage rates if the US is in the same situation and is making the same moves.
The price of divergence is already being reflected in the sinking Canadian dollar.
OPEC is also a black swan in all of this keeping production up and oil price down.
When oil is up it protects the loonie from excessive devaluation.
A Trump presidency (tariffs) also is not good for the bottom line of Canadian businesses.
All these things lead to inflation due to increased costs and a lower CAD.

[John]

Since Sept, I've stopped my purchases. I feel more worried right now about a pending recession than I have ever felt before. If I am at all like average Canadians, the consumers are frozen in fear right now.

[john.a.gonsalves]

I have my eye on Mt Everest does not mean anything, now we are seeing rents come down and new condos being rented out and 10 to 15 % than 6 months ago, most likely it will go down even further, as much as 35% by new year, or there will be a fire sale to be announced, as for new starts, when that species makes a comeback is not going to happen anytime soon....

We can try and push out product, but the problem is the

[John]

Retail goes up every Sept through December. That doesn't equate to consumer confidence.

[KM-srcc]

Printing more money, Jumbo rate cuts, and creating inflation are NOT answers to ongoing economic downturns, they just kicking the can down the road.
An economy based on ONLY BUYING and SELLING HOMES and not building more homes (= Productivity) will not survive and will certainly not do well.
Real growth won't be achieved by just buying and selling homes; economic growth will only be achieved when the country starts PRODUCING MORE.
Given the current country's financial and economic situation and rising global inflation due to global geopolitical conflicts and tensions, the outlook for the global economy will not be positive at least in the short and midterms.

On the other hand, the Bank of Canada has lost control over the economy, and Jumbo rate cuts are the best proof of what is ahead, HIGH INFLATION, and Economic Downturn.

[courtneybrown]

Why do the Canadian government not use our oil pit to fuel the economy