Canada’s Housing, Mortgage and Credit Markets Department of Finance October 2008 Department of Finance October 2008.

Slides:

Advertisements

Similar presentations

Economic Update by Doug Duncan Chief Economist Fannie Mae American Land Title Association October 17, 2008 Kaua’i, Hawaii.

Advertisements

Economic Assessment William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Not So Silent Partners: Libraries and Local Economic.

1 The Global Financial Crisis: What’s Next? Bank Guarantee Fund Conference Warsaw, May 21, 2010 Mark Allen Senior IMF Resident Representative for Central.

Recent Trends in the Evolution of Household Saving and Wealth Components in Canada Presentation to the OECD Working Party on Financial Accounts Patrick.

The Israeli Economy International Perspective January 2013 Ministry of Finance A comparison of recent economic developments in Israel and the developed.

January 2013 Going global in fixed income. Agenda Going global in fixed income China – another debt bubble in the making? M&G Global Macro Bond Fund The.

Economic Outlook for Consumers William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago University of Illinois Center for.

1 A Strategy for Fiscal Adjustment When the Recovery Takes Hold Paolo Mauro November 17, 2009 Bangkok.

1 HOUSING MARKET IN FINLAND May HOUSING PRICES PER EARNINGS INDEX 2000=100.

Financial stability report 2007:1 24 May CHAPTER 1 Financial markets.

Financial Stability Report 2007:2 4 December 2007.

Financial Crisis James Barth Powerpoints March 2009 Complete presentation at Follow this link to.

The Stagnation Two-Step: Pessimism and Spending Richard Curtin Research Professor and Director Surveys of Consumers University of Michigan.

European Long-Term Growth and the Euro Crisis Uri Dadush New York University, Stern School of Business October 8,

THE SPANISH HOUSING & MORTGAGE EXPERIENCE José Ramón Ormazabal Spanish Mortgage Association Moscow, 27 Oct 2007.

FSR 2009:02 26/11/2009. Government support from the Riksbank and the Swedish National Debt Office to financial institutions on the Swedish market SEK,

Governor Stefan Ingves Introduction on monetary policy Riksdag Committee on Finance 18 September 2012.

Copyright ©2003, South-Western College Publishing Contemporary Economics: An Applications Approach By Robert J. Carbaugh 2nd Edition Chapter 13: Fiscal.

The Israeli Economy International Perspective February 2013 Ministry of Finance A comparison of recent economic developments in Israel and the developed.

CONFIDENTIAL AND PROPRIETARY. Permission to reprint or distribute any content from this presentation requires the written approval of Standard & Poor’s.

Brett Hammond, Ph.D. Managing Director and Chief Investment Strategist, TIAA-CREF ARE WE THERE YET? THE “NEW NORMAL” ECONOMY AND WHAT IT MEANS FOR INVESTORS.

Figure 12.1 American house prices; 12-month moving average, 1987 – 2012 Source: calculations based on data from US Census Bureau; median new house price.

PORTFOLIO AND SELECT COMMITTEES ON FINANCE March 2006.

Economic Outlook Briefing for CIC Peter Andrews Agency for Greater London Bank of England November 2014.

Making Sense of the Global Financial Crisis Christopher Ragan Department of Economics McGill University and Clifford Clark Visiting Economist Department.

Financial Stability Report 2005: Summary of the stability assessment.

Inflation Report August Money and asset prices.

The Economy and External Environment 10th Annual Georgia Idea Institute August 19, 2015 Bill Hampel, Chief Policy Officer Credit Union National Association.

1 Briefing on the Regional Economy Presented to the New York State Network for Economic Research Rockefeller Institute for the Study of the States Albany,

1 Coping With The Limits of Macroeconomic Policy The Recovery from the Great Recession In this presentation National forecasts are produced by Global Insight,

PORTFOLIO AND SELECT COMMITTEES ON FINANCE June 2006.

Enlargement of the European Union: Three Years Later Susan Schadler European Department International Monetary Fund.

© 2012 Cengage Learning. Residential Mortgage Lending: Principles and Practices, 6e Chapter 3 Role of Residential Mortgage Lending in the Economy.

CAD Grant Lynch Matt Bennett Lainie Vi. In 2000, the Bank of Canada adopted a system of eight pre-set dates per year on which it announces its key.

Economic perspectives, annual address 2009 Economic Bulletin1/09.

Chapter 1. Sovereign debt Percentage of GDP Sources: Reuters EcoWin and IMFChart 1:1.

Inflation Report November Money and asset prices.

Financial Stability Report 2006:1 May 31, CHAPTER 1 Financial markets.

The Irish Market - What Lies Ahead? Donal Forde 24 th October, 2007.

Tracking Economic and Financial Developments in the Current Global Recession Rob Wright Deputy Minister of the Department of Finance International Seminar.

> Keith Hembre, Chief Economist and Head of Quantitative Analysis > September 25, 2007 Investment Strategies in a Changing World.

Financial Stability December Financial stability in Sweden is sound at present However, the banks’ resilience to unexpected, negative events has.

Financial Stability Report June 2010 Press conference 1 June 2010.

Introduction to Business © Thomson South-Western ChapterChapter Chapter 2 Measuring Economic Activity Economic Conditions Other Measures of Business Activity.

Business Outlook PMI was registered at 50.8 percent indicating that manufacturing economy is generally expanding. However, compared to October’s 50.9.

Financial Stability Report June Financial stability in Sweden is satisfactory Contingent risks have increased Financial Stability Report 2008:1.

CONFIDENTIAL AND PROPRIETARY. Permission to reprint or distribute any content from this presentation requires the written approval of Standard & Poor’s.

The Recovery from the Great Recession In this presentation National forecasts are produced by Global Insight, Inc. State and Metropolitan forecasts are.

Inflation Report May Demand Chart 2.1 World trade (a) Sources: CPB Netherlands Bureau for Economic Policy Analysis and OECD. (a) Volume measure.

Introduction to the UK Economy. What are the key objectives of macroeconomic policy? Price Stability (CPI Inflation of 2%) Growth of Real GDP (National.

Inflation Report May Money and asset prices.

Inflation Report May Money and asset prices.

The Outlook for Global Capital Flows Richard Koss International Monetary Fund April, 2016 University of British Columbia 1 THE VIEWS EXPRESSED IN THIS.

The Economic Outlook Sam Kahan, Senior Economist Federal Reserve Bank of Chicago: Detroit Branch Wisconsin Bankers Association Madison,

Macro-Financial Review H June Key Messages External Risks remain elevated and have increased since the last Macro-Financial Review A Brexit.

MBA35 Managerial Excellence The economic crisis (2 lectures) The firm and its environment (part 1) Francesco Giavazzi.

Alberta's Economic Outlook Catherine Rothrock A/Chief Economist November 6, 2015.

Overview. Table A Key risks to the UK financial system.

Macroeconomic Realities

Macro-Financial Review H June 2016

Njuguna Ndung’u, CBS Governor, Central Bank of Kenya

Part A: Global environment

Monetary Policy Report 2008:1

Business Outlook PMI was registered at 50.8 percent indicating that manufacturing economy is generally expanding. However, compared to October’s.

The Third Quarter in Review

Federal Reserve Bank of Richmond

Introduction to the UK Economy

1. Financial markets functioning better Basis spread, basis points

Presentation transcript:

Canada’s Housing, Mortgage and Credit Markets Department of Finance October 2008 Department of Finance October 2008

2 Strong housing price growth in Canada followed a prolonged period of weakness leading to much lower levels than in the U.S. by the mid 2000s. Source: Canadian Real Estate Association; S&P, Fiserv, and MacroMarkets LLC. Existing Home Prices Index = 100 in 1989Q1 U.S. S&P/Case-Shiller home price index Canada Q191Q193Q195Q197Q199Q101Q103Q105Q107Q1

3 IMF: Divergence from price growth suggested by fundamentals ( ) Source: IMF Fall 2008 World Economic Outlook. The IMF definition of fundamental factors includes: disposable income growth per capita, short- and long-term interest rates, credit growth, equity price growth and growth in the working population. Price growth that is not explained by these factors can be interpreted as a measure of over valuation and, therefore, the susceptibility of a correction in house prices. According to the IMF, house price growth in Canada has been fully explained by fundamental factors. Per cent AustriaGermany Finland Korea Canada PortugalU.S. New ZealandItaly Greece Netherlands DenmarkJapan BelgiumSpain Sweden France NorwayAustralia U.K. Ireland

4 Mortgage debt relative to the value of housing has declined in Canada since unlike the U.S. Ratio of Mortgages to the Value of Housing Ratio Canada U.S. 2008Q2: Q2: 0.31 Source: Statistics Canada; U.S. Federal Reserve Q12003Q12005Q12007Q1

5 The share of mortgages in arrears in Canada remains low, suggesting that Canadian households are better able to service their mortgages. Percent of Mortgages in 90-day Arrears Canada U.S. Per cent Source: Canadian Bankers’ Association; Bloomberg 08Q2: 4.5% 08Q2: 0.3% Q12004Q12006Q12008Q1

Average Tier 1 Capital Ratios of Major Banks AVG CDN Banks AVG U.S. Banks AVG U.K. Banks AVG Euro Banks Tier 1 Capital Ratio

7 Canadian Interest Rate Spreads Source: Bloomberg Banks' Cost of Funds vs. Government of Canada Oct-00May-01Dec-01Jul-02Mar-03Oct-03May-04Dec-04Aug-05Mar-06Oct-06May-07Dec-07Aug-08 basis points Short term (3-month Bankers' Acceptance vs. T-Bill) Medium term (Merrill Lynch Canadian Financial Index vs. GOC 5-year)