Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
Employment In Canada’s Largest Cities Is Worse Than It Looks
The unemployment rate in Canada’s biggest cities is rising, but doesn’t capture how bad things are. In Toronto the unemployment rate reached 7.8% in March, up 11.42% from last year. This is the same level experience in August 2016 – not that long ago, so what’s the big deal? Well, suddenly people aren’t participating in the workforce anymore.
The rate of participation in Toronto fell to 62.8% in March, up 5.14% from last year. Toronto hasn’t seen such a low rate since at least 2001, when Stat Can started using this methodology. The lowest participation rate in decades means a bigger loss to productivity than employment implies. A similar trend is being seen in Montreal and Vancouver.
Teranet: Expect Loss Of Real Estate Momentum In Toronto, Ottawa, And Montreal
The Teranet-National Bank of Canada House Price shows prices moved higher last month. The C11, an index of Canada’s 11 largest real estate markets, increased 3.84% from last year. While the advance was substantial, economists running the index expect prices to cool soon. They noted, “the loss to be more prevalent in the metropolitan markets located in Central and Eastern Canada (Toronto, Hamilton, Ottawa-Gatineau, Montreal and Halifax) which so far have pulled the national HPI up.”
Canadian Consumer Prices Make Biggest Decline Since The Inception Of Index
Consumer price inflation has been slowing very quickly for Canadians. March CPI growth fell from 2.2% to just 0.9% in March. A deceleration this large hasn’t been seen since September 2006, when it dropped from 2.2% to 0.7% over a month. Canada’s national statistics agency also noted on a seasonally adjusted basis, a decline this large is unprecedented.
Toronto Real Estate
Greater Toronto Insolvencies Rise Over 18%
Insolvencies are rising in Greater Toronto, and it started appearing before the pandemic. Toronto saw 1,523 insolvency filings in February, up 18.43% from last year. To contrast, Ontario is the fastest growing province for insolvencies, and it’s growing at 16.80% from last year. As fast as insolvencies are growing in Ontario, they’re rising even faster in its biggest city.
Toronto Real Estate’s Average Sale Price Turns Negative, First Time Since 2018
The Toronto Regional Real Estate Board (TRREB) data shows the first drop in average price for Toronto real estate. The average sale price fell to $819,665 in the first 17 days of April, down 1.5% from last year. Detached homes saw the biggest hit with an average sale price of $990,543 in the same period, down 4.6% from last year. This is the first time the average has taken a dip since 2018.
Vancouver Real Estate
Greater Vancouver Insolvencies Make Double Digit Climb
Greater Vancouver insolvency filings are ripping. The region saw 401 insolvency filings in February, up 10.77% from last year. The rate of growth has been accelerating over the past few years, coming off of record lows. Overall as a rate, this isn’t a huge number – but it’s climbing very fast.
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