The Most Splendid Housing Bubbles in Canada as Bank of Canada Begins QT, Yields Spike | Wolf Street

Total assets have now declined by 14.3% from the peak in March 2021, to C$493 billion. The BOC has shed practically all of its Canada Treasury bills (purple line) and most of its Repos (green line). And over the past few weeks, even its holdings of GoC bonds started to decline (red line), as QE has turned into QT (quantitative tightening):

In Victoria, house prices jumped by 1.5% for the month, and by 20.8% year-over-year. Prices had flattened from 2018 through June 2020, when the BoC’s free money and interest rate repression kicked in:

In Ottawa, house prices declined 0.3% for the month, the fifth month in a row of declines. This whittled down the year-over-year gain to 15.9%, from the peak last July of 28.9%:

The Most Splendid Housing Bubbles in Canada as Bank of Canada Begins QT, Yields Spike | Wolf Street