Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
Canada’s GDP Gets A Boost By Deepening Reliance On Real Estate
Canada’s GDP got a big boost from real estate in the last quarter. Residential investment reached $136.9 billion in Q2 2019, up 1.35% from the previous quarter. This still represents a decline of 3.16% from last year. However, it was enough to push it towards 6.56% of GDP for the quarter, up 0.45% from a quarter before. Even though it provided a quarterly boost, residential investment is still in a downtrend.
Toronto, Vancouver, And Montreal See Delinquencies On Large Mortgages Rise
Canada’s largest real estate markets are seeing delinquencies on large mortgages rise. Toronto mortgages above $400k at origination saw the rate of delinquency climb to 0.10% in Q1 2019. This is up 25%, compared to the same quarter last year. In Vancouver, similar sized mortgages saw the rate of delinquency climb to 0.11%, up 22.22% from last year. Montreal also experienced a rise, with the rate of delinquency climbing to 0.30, up 3.45% from last year. This comes after all three markets consistently saw the rates decline.
Vancouver Real Estate Falls To Bottom Of The List For Demand, Ottawa Tops
Canadian real estate markets are seeing a shift in demand, with hot markets falling to the bottom. Gatineau, Halifax, and Ottawa are seeing the largest surges, relative to inventory. The markets were previously slow when the country saw rapid price escalation. Even with the new demand, price growth is still behind the 5-year national movement.
Toronto Real Estate
Toronto New Condo Prices Rise, While Detached Losses Get Bigger
Greater Toronto new homes made a mixed price movement, depending on the type. Condo apartments are seeing rising prices, with the benchmark hitting $838,824 in July, up 8.3% from last year. Single-family homes prices on the other hand, saw the benchmark fall to $1,091,727, down 4.5% from last year. Condo price growth accelerated on the month, while declines turned larger for detached.
Toronto Condo Prices Continue Parabolic Move To New High
Condo resales also experienced an abrupt jump in Toronto. TREB reported the benchmark price reached $543,100 in July, up 8.41% from last year. The City of Toronto hit $574,700, up 8.32% from last year. Both regions printed a new record high for the condo benchmark.
Vancouver Real Estate
Vancouver Real Estate Developers Drop New Inventory By Over 90%
Vancouver real estate developers are responding to weak sales by dropping the amount of new inventory released. Only an estimated 157 new pre-sale units hit the market in July, down 91.82% from last year. The decline in interest has recently sent forecasts for the number of units to launch lower. The number released is 43% lower than forecasts anticipated for the month.
Vancouver Condo Sales Jump, But Prices Fall Back To September 2017 Levels
Greater Vancouver condo resales moved higher, but prices continued to fall lower. REBGV reported 1,243 condo sales in July, up 15.19% from last year. The benchmark price fell to $653,200, down 8.8% from the price last year. Sales are relatively weak for the amount of inventory, but they’re firming up as prices decline.
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