HOUSING MORTGAGE IMBALANCE (HMI) INDICATOR | Canada
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HOUSING MORTGAGE IMBALANCE | CANADA
PERCENT (%)
Calc. using data from: Statistics Canada
WHAT IS THE HOUSING MORTGAGE IMBALANCE ("HMI")?
The HMI captures the spread between bank mortgage credit growth and housing stock growth. Empirically, Canadian housing prices remain stable when the HMI is around 2-3%, indicating a balance where the new money entering the housing market is relatively matched by new housing supply. Deviations typically indicate that there's either too much or too little new money entering the housing market compared to the number of new homes.
We have found that bank credit is the leading cause of inflation in Canada's housing market, and in countries all over the world (the common denominator is the modern commercial banking system).
The HMI is based on the disaggregated credit model of banking, which realistically considers the banking system as a legal and privileged emitter of bank deposits through double-entry bookkeeping practices when banks lend. You can think of the HMI as a flow-based indicator, where prices are thought to respond to marginal credit expansion, not existing debt levels. Unlike classical economics, the HMI sits within an interpretation of markets in disequilibrium.
TIME-SERIES & CORRELATIONAL ANALYSIS
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | CANADA
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | NFLD
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | PEI
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | NS
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | NB
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | QC
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | ON
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | MB
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | SK
Calc. using data from: Statistics Canada
NEW HOME PRICES VS. HOUSING MORTGAGE IMBALANCE | BC
Calc. using data from: Statistics Canada
HOUSING MORTGAGE IMBALANCE | CANADA
PERCENT (%)
Calc. using data from: Statistics Canada
Calc. using data from: Statistics Canada
NEWFOUNDLAND & LABRADOR
PERCENT (%)
Calc. using data from: Statistics Canada
PRINCE EDWARD ISLAND
PERCENT (%)
Calc. using data from: Statistics Canada
NOVA SCOTIA
PERCENT (%)
Calc. using data from: Statistics Canada
NEW BRUNSWICK
PERCENT (%)
Calc. using data from: Statistics Canada
QUEBEC
PERCENT (%)
Calc. using data from: Statistics Canada
ONTARIO
PERCENT (%)
Calc. using data from: Statistics Canada
MANITOBA
PERCENT (%)
Calc. using data from: Statistics Canada
SASKATCHEWAN
PERCENT (%)
Calc. using data from: Statistics Canada
ALBERTA
PERCENT (%)
Calc. using data from: Statistics Canada
BRITISH COLUMBIA
PERCENT (%)
Calc. using data from: Statistics Canada