-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI DATA ANALYSIS:Canada House Prices Down, Household Debt Up>
By Yali N'Diaye
OTTAWA (MNI) - Data released Thursday by Statistics Canada showed
further housing market weakness in January, while household
debt-to-disposable income reached a record high at the end of 2018.
The overall picture further reinforced the case for the Bank of
Canada to remain on hold as it assesses the health of the housing sector
while still concerned about elevated household debt.
- NEW HOUSING PRICES DECLINE
Canada's new housing prices edged down 0.1% in January, both
month-to-month and year-over-year, led by drops in the country's largest
markets.
The monthly decrease was the first since February 2018, while the
12-month decline was the first since December 2009.
House only prices were down 0.1% on the month and 0.4% from January
2018. Land only prices were flat from December and up 0.4% on the year.
- LARGE MARKETS LEAD PRICE DROP
Prices in Toronto, which represents 29% of the index, fell 0.2% on
the month and 1.5% year-over-year, the largest 12-month drop since
September 1996.
Overall, prices in Ontario were down 0.1% both on the month and
year-over-year.
In Vancouver, the second largest metropolitan area, representing
nearly 14% of the index, prices edged down 0.1% on the month and fell
0.3% from January 2018, the largest such decrease since March 2015.
At the provincial level, prices were down 0.1% on the month in
British Columbia, for a 0.2% decrease on the year.
In oil-rich Alberta, prices fell 0.1% on the month and 0.8% on the
year. Monthly prices were down 0.1% in Edmonton and 0.2% in Calgary. On
a 12-month basis, prices fell 0.5% in the former and 1.1% in Calgary.
Lower prices were due to lower negotiated selling prices as well as
poor market conditions, the agency said.
The more comprehensive Teranet-National Bank National Composite
House Price Index indicated further downward pressure in February. The
index fell 0.4% on the month, the largest such drop outside of the 2009
recession.
- HOUSEHOLD DEBT INCREASES
Meanwhile, household credit market debt-to-disposable income
reached a record high 178.5% in the fourth quarter 2018, leaving the
Canadian economy vulnerable to higher interest rates.
The household debt service ratio rose to 14.9%, the highest since
the fourth quarter 2007.
Households borrowed C$21.2 billion in the fourth quarter. Demand
for consumer credit and non-mortgage loans decreased, while demand for
mortgage loans rose C$2.3 billion.
During the quarter, the value of non-financial assets fell 2.2%,
led by natural resources and residential real estate.
--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com
[TOPICS: MACDS$,M$C$$$]
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.