he Canadian economy added 157,000 jobs in September, finally recouping all of the jobs lost during the height of the pandemic. However, wage inflation remains tepid, growing just 1.7% from last year, despite overall CPI inflation running at 4.1%, an eighteen year high. In other words, wage inflation is not keeping pace with the rising cost of living. The Bank of Canada’s Tiff Macklem took to the airwaves this past week, assuring Canadians inflation was likely to prove transitory. Macklem said supply disruptions and price pressures are “proving more complicated, they are continuing, so there is some risk that there’s a bit more persistence than we previously thought.” However, he added there are still “good reasons” to believe high inflation will be temporary. Let’s hope he’s right. Part of the Banks thesis for transitory inflation is a slowing housing market. However, i’m not sure what data Macklem and Co are looking at. September housing activity points towards a housing market that remains piping hot. Seasonally adjusted home sales in Toronto were up 0.7% in September, the first month over month increase since March. Meanwhile, active listings for sale plunged by nearly 50% from last years levels. There’s a paltry one month

We’ve talked a lot about the great reshuffling here. The pandemic changed a lot of things, including where people want to live, and how they want to live. The lust for bigger spaces for less money has driven an exodus away from the city. Recent data from Stats Canada shows Canadians are on the move. Interprovincial migration reached 123,500 people in Q2 2021. This is an increase of 55.1% from the previous quarter, and the largest migration since Q3 1991. Ontario saw the biggest outflows, losing over 11,000 people and marking the largest outflows since the 1980’s. Meanwhile, BC & Nova Scotia enjoyed the largest inflows. To be honest i’m a bit surprised BC remains at the top of the charts. Clearly sky high home prices are not deterring people from moving here. The average home price in BC now stands at a whopping $901,000 a 17.2% increase from last year. There’s really not a lot of affordable options left in BC. Here’s how average home prices stack up across the province, with annual price growth: – Chilliwack $710,238 (increase of 21.3%) – Fraser Valley $984,965 (increase of 20%) – Greater Vancouver $1,174,176 (increase of 8.9%) – Kamloops $558,291 (increase of 21.9%)