Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
Canadian Housing Is The Least Affordable In The World… For Local Incomes
Canadian real estate prices are the least affordable of advanced economies. Canada’s house price to income ratio reached 122.9% in Q4 2018, up 2% from the year before. Portugal, which came in second, was a full 5.2 points lower. For context, the US is at 108.11%. Relief may be on the way, as the ratio is climbing much slower on a quarterly basis.
Vancouver Real Estate Sees Another Indicator Collapse, Montreal Demand Rises
Relative demand is increasing in Ontario and Quebec, but making a sharp decline in BC. Montreal, Ottawa, and Toronto made the biggest jump in the sales to new listings ratio. The ratio indicates Montreal and Ottawa are climbing further into a hot market. The jump for Toronto however, only puts it back into the middle of a balanced market.
British Columbia is seeing their markets cool down the fastest across Canada. Fraser Valley, Vancouver, and Victoria measure the biggest SNLR drops in the country. Even with the big drops to the ratio, only Greater Vancouver is in a technical buyer’s market.
HELOC Crazy Canadians Are Cooling Their Borrowing Sprees
Canadian home equity lines of credit (HELOC) balances are starting to cool in growth. The balance of loans secured by homes reached $299.6 billion in March, up 5.25% from last year. Growth is still huge, but relative to recent growth the deceleration is substantial. The annual pace of growth is the slowest March since 2016.
Toronto Real Estate
Toronto Condo Prices Print New All-Time High
The price of a typical Toronto condo reached a new all-time high for resales. The benchmark hit $528,900 in April, up 6.81% from last year. TREB reported sales of the units reached 2,357, up 6.26% from last year. Higher prices on higher sales is generally good news for stickiness, but be careful. The sales number is higher, but still the second fewest for the month of April over the past 5 years.
Toronto New Condo Prices Drop Over $20k In Just A Month
Toronto’s resale condo market is printing new highs, but that’s not the case with new condos for sale. The typical condo benchmark reached $785,585 in April, down 2.85% from the month before. Prices are up from last year, but the rapid near term deceleration is worth keeping an eye on. In the past four months, a typical new condo dropped $45,053 from its price tag.
Vancouver Real Estate
Vancouver Condo Prices Fail To Rise In April For The First Time In 10 Years
Greater Vancouver condo prices are falling, as inventory rises and sales drop. The price of a typical condo fell to $656,900 in April, down 6.9% from last year. Prices across the board are now back to 2017 levels, wiping out over a full year of movement. Inventory is rising with 5,796 active listings, up 106% from last year. Sales fell to 885 in April, down 32.3% from last year. Inventory is now at a multi-year high for the month, while sales are at a multi-year low.
Vancouver New Condo Sales Fall Over 50%, Almost 5,000 Units Postpone Launch
Greater Vancouver new condo sales are also slowing, causing inventory to be delayed. There were 173 sales in April, down 54.22% from last year. Only 865 new listings were launched in April, a 1.59% decline compared to last year. Wasn’t a flood of new inventory suppose to hit this year? Well, MLA Canada estimates almost 5,000 concrete units have postponed launch for “more favorable market conditions.” Now the question is, who will hold out longer, developers or condo buyers?
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