Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
Ontario Loses Over 5,000 Real Estate Jobs, BC Hits New All-Time High
Real estate sector jobs made a minor movement on a national scale, but there’s a major shift on a regional basis. FIRE seasonally adjusted employment fell to 1.193 million jobs in June, down 0.02% from the month before. While this was the first decline for June since 2014, it only works out to a drop of 200 jobs. Breaking these numbers down, Ontario employment fell to 577,400 jobs, down 0.98% from the month before – a loss of 5,700 jobs. BC FIRE employment reached 162,000, up 4.99% from the month before – a rise of 7,700 jobs. The national number makes it seem like not a lot is happening, but there’s a huge regional shift.
Canadian Non-Bank Mortgage Lenders Held Over 34,000 Overdue Mortgages
Non-bank lenders play a huge role in the Canadian mortgage marketplace. They held 1.7 million residential mortgages in Q4 2018, worth $325.5 billion. Overdue was 34,638 of those mortgages, representing $6.4 billion in value – about 2% of the total. In arrears more than 90 days were 4,249 mortgages, only 0.25% of the total number. The number of people very behind on their payments is relatively low. However, credit agencies warn that defaults will increase as more people start to fall just a little behind on their payments.
Toronto Households Seeking Creditor Protection Rises Over 12%, Montreal Numbers Fall
Insolvency filings are up across Canada, but cities aren’t all moving at the same pace. Toronto reported 3,885 insolvency filings in Q1 2019, up 12.45% from the same quarter last year. Vancouver had a more mild increase with 1,126 insolvency filings in the quarter, up 1.35% from last year. Montreal is going in the other direction with 4,659 insolvency filings, down 5.23% from last year. Both Toronto and Vancouver saw filings fall over the past few years, so they’ve hit a bottom. Montreal on the other hand has seen their numbers climb over the past few years, so the decline is welcome news.
Canadian Housing Starts Jump To Highest Level Since 2007
Canadian real estate developers are scrambling to build the most housing in decades. There were 234,238 annualized starts in June, up 3.46% from last year. The last time it was this high was in 2007, and even then it only reached this level for the month of September. To see this much building at the same time for longer than a month, we need to go all the way back to 1990. Canada is seeing a building boom not seen in almost 30 years.
Toronto Real Estate
Toronto Detached Real Estate Prices Rise From Last Year… But Losses Get Bigger From Peak
Toronto detached real estate prices climbed from last year, but are falling further from peak. TREB reported a typical detached home cost $942,200 in June, up 1.47% from last year. In the City of Toronto that price jumps to $1,135,200, up 1.41% from last year. TREB prices are down 10.22% from the all-time high, a slight improvement from the month before. The City of Toronto is down 7.59% from the peak, getting slightly worse than the month before. That is, detached prices in the 905 are rising faster than those in the City.
Vancouver Detached Real Estate Sales Fall To Multi-Decade Low, Losses Get Bigger
Greater Vancouver detached real estate prices are falling as sales drop to the lowest levels in decades. REBGV reported the benchmark for detached homes fell to $1,423,500 in June, down 10.9% from last year. There were 763 detached sales, down 0.39% from last year. The decline seems only minor, but was enough to print the fewest sales since 1991 – the last year readily available from REBGV.
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