The Week in Economic and Real Estate News

CMHC reported last week that housing starts in Canada were trending higher in May compared to April. Builders continue to manage their activities according to demand and analysts suggest that current levels of starts are within the range supported by market fundamentals.

According to the Teranet House Price Index, May saw modest Canadian home price increases with the index reaching a new high. Only 3 of the 11 major markets tracked saw new highs.

RBC Economics published its latest Economic and Financial Market Outlook last week. It predicts solid growth in Canada over the next two years but the housing market is expected to slow and provide limited support to the economy.

The benchmark government of Canada five year bond yield ended the week at 1.58%, unchanged from the previous week.