Naru Menon’s Blog

In July, home sales [↑](color-green) ~10% yearly, but [↓](color-red) 300+ MoM units from 1,656. Shuswap / Revelstoke: Single-family home: $711K Town home: $566K Condo/apartment: $430K

Houses in Canada are ~40% more expensive than condos on a national level, taking over 2-yr worth of income to cover the difference. Vernon has a $385.4K price gap, requiring 5.3-yr to move up, while Kelowna has a $453K difference, needing 5.6-yr to bridge the gap.

Alex Leduc, CFA and CEO of Perch Capital, is making the alternative investment class of mortgage investing more accessible to retail investors. Mortgage investments are an alternative investment that have been around since 1973, and Canadians have poured billions into mortgage investment corporations (MICs) for decades. Investing in a MIC can generate passive income through…

Bond yields have been rising this week, which could lead to an increase in fixed mortgage rates if the trend continues. The 5-year Government of Canada bond yield rose to 3.92% on Tuesday, and could reach the 4% mark if it continues to rise. If the 5-year yield breaks the 4% mark, mortgage rates could…

The mortgage market has been unpredictable due to changing interest rates influenced by economic disruptions, inflation, and other factors. The BoC initially reduced rates to 0.25% during the pandemic but has since raised it to 5% in response to economic recovery.

Currently, Canadian mortgage rates have remained stable, providing relief after a surge in the past two months. There is an increasing interest in five-year fixed rates, which is the most popular option with 71% of recent rate searches. The direction of rates will largely depend on the U.S. Federal Reserve's upcoming decision. If this rate…

The estimated income-to-expense ratio in BC is 1.2. The cost-of-living is estimated to be ~$79K/yr. The median annual household income in the province is ~$98K.

Avg asking price for a rental unit in Canada reached a record high of $2,042 in June. Yearly rent inflation for June was 7.5%, lower than the double-digit growth seen in 2022 and early 2023. Rents ↑ 1.4% MoM, the fastest monthly increase so far in 2023.