🏡 The Fed Exuberance Index for Canada comes down.
This real estate index measures how far the price growth is from fundamentals.
A market is exuberant with 5+ quarters of excess price growth.
The Canadian market has been in that state for almost 7 years.
The pandemic phenomenon reversed the falling index.
In 2021, the housing price shot up 27% Y/Y.
High price eventually pushes out buyers and dampens demand.
Bank of Canada data shows Dec '21 new mortgages down 19% Y/Y.
The smallest funds borrowed since Mar '20.
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