The article discusses the current state of Ontario’s housing market, which is experiencing a decline in prices and sales. The author cites a report by Moody’s Analytics that suggests Canadians are prioritizing mortgage payments over other types of debt, such as credit cards and auto loans. However, the delinquency rates for auto loans have surpassed pre-pandemic levels.
The article also mentions that higher interest rates have made it more difficult for buyers to close on properties they’ve previously purchased, which could lead to a decline in home prices by 10% by mid-2024.
In addition, the author highlights the importance of corporate culture when selecting stocks. Igor Bekker, a portfolio manager, suggests that investors should pay attention to the balance between employee happiness, customer satisfaction, and stakeholder value, as it can inform long-term value creation.
The article concludes by noting that Ontario’s housing market is experiencing a decline similar to the 1990s, but with some key differences. While a downturn of the magnitude of the 1990s is unlikely, homeowners will continue to face pressure through at least 2025/26 due to rising borrowing costs and more supply coming on the market.
Overall, the article suggests that the current state of Ontario’s housing market is complex and influenced by various factors, including interest rates, corporate culture, and consumer behavior.