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Steve Saretsky -

The new Bank of Canada Governor, Tiff Macklem, didn’t mince words in his first speech to the house of commons finance committee, reminding attendees “We’re in a deep hole and its going to be a long way out of this hole.” Indeed, it’s difficult to find much optimism when it comes to the economic outlook. The Canadian economy was hammered with more bad news as retail sales fell further than expected. Receipts fell 26% in April on a month over month basis, falling significantly further than analysts expectations for a 15% decline. For the first time in 27 years, retail sales fell across every sub-sector. As the Canadian consumer pulls back, so too has immigration. Once deemed a strong pillar of the economic machine, Canada admitted a mere 4,140 new permanent residents in April. That was down 85% from the same month last year. The number of study visas declined 41% year-over-year, and temporary immigrants collapsed by 80%. Suffice to say, a whole country has been upended as it hurries to adapt to a new normal. It seems logical to conclude that even with the economy re-opening, many businesses are simply not designed to prosper in a socially distanced society. The threat

Steve Saretsky -

It’s been several months since COVID-19 sent the Canadian economy into a tailspin. As we begin to re-open, many questions remain unanswered, including the fate of the Canadian housing market. So far, here’s what we know. Sales activity has collapsed, falling by about 50% in April, with a similar figure expected in May. However, despite the unemployment rate nearly tripling, sales activity is arguably better than most would have anticipated at the beginning of the shut-downs. Meanwhile, sellers have refrained from listing their homes, with the number of new listings falling by roughly the same as sales. This has ultimately helped to keep inventory levels in check, and has supported prices for now. For now, it appears the damage has been kept in check. This has bolstered some confidence in the market, with homebuyers flocking to detached houses further out from the city core, as home buying preferences shift to more space and better affordability. A decision which has been made easier around the idea of working from home more frequently. This has impacted the downtown condo markets where space and affordability has become a concern. Indeed, consumer behaviour has changed remarkably in the matter of a few months. Will

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The Canadian Economy

Steve Saretsky -

The new Bank of Canada Governor, Tiff Macklem, didn’t mince words in his first speech to the house of commons finance committee, reminding attendees “We’re in a deep hole and its going to be a long way out of this hole.” Indeed, it’s difficult to find much optimism when it...

Steve Saretsky -

It’s been several months since COVID-19 sent the Canadian economy into a tailspin. As we begin to re-open, many questions remain unanswered, including the fate of the Canadian housing market. So far, here’s what we know. Sales activity has collapsed, falling by about 50% in April, with a similar figure...

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The Saretsky Report. December 2022