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Subject

Canada's housing market.

Significance

Data released on December 19 showed that consumer price index (CPI) inflation slowed to 1.7% year-on-year in November, the slowest since January 2018. However, mortgage interest payments were one source of upward pressure.

Impacts

Foreign real estate investment will move from Vancouver and Toronto to Montreal and Ottawa, raising home values.

Home prices in suburban Toronto and Vancouver will rise as urbanites seek cheaper alternatives to downtown housing.

Canada-China tensions could reduce Chinese investment in Canada’s housing market in the short term.

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