Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
The US Federal Reserve Has Canadian Real Estate Back In Bubble Territory
Canadian real estate buyers are acting exuberant when it comes to prices once again. Dallas Fed, a branch of the US Federal Reserve, is noting elevated exuberance levels in Canada remain. This is an indicator that buyers are sending prices higher, without a fundamental cause. This marks the 19th consecutive quarter where exuberance was the driver of price movements. Typically, after 5, the market is said to be exuberant – which is the technical way to say “a bubble.”
Canada’s Non-Bank Mortgage Industry More Than Triples Its Business
Non-bank mortgage lenders are seeing rapid growth across Canada, especially MFCs and MICs. Mortgage finance companies (MFCs) held $63.66 billion of assets in 2018, up 7,606% from 2007. Mortgage investment companies (MICs) held $29.85 billion in 2018, up 211.19% since 2007. The latter doesn’t look like much in contrast to MFCs, but they’re both huge growth.
Canadian Real Estate Prices Jump With Higher Inflation – Except In Western Canada
Canadian real estate prices are accelerating alongside hotter inflation. The C11, an aggregate price index of Canada’s largest cities, climbed 1.95% from last year. The small-ish looking increase helped to push a new record high for the index. Even though this number seems relatively small, it was weighed down by Western Canadian cities. In Eastern Canada, Ontario, and Quebec – price growth is accelerating even faster.
Not A Single Major Canadian Real Estate Market Is A Buyer’s Market
Not a lot of Canadians listed their home for sale last month, but a whole lot bought new ones. The sales to new listings ratio (SNLR) reached 59.7% across Canada in December, rising 4.8% from last year. The market is now above 2017 levels, with no major real estate market with an SNLR below 40%. It’s not just your local real estate market that was tight last month, it was most markets across the country.
Toronto Real Estate
Toronto Detached Real Estate Sales Surge, As Inventory Drops To Lowest Level In Years
Toronto detached real estate sales are back to normal levels, but inventory was tight. TREB reported 1,984 detached sales in December, up 24.77% from last year. This brings sales volume levels just 0.41% below the 5-year median for the month. Meanwhile detached inventory fell to the lowest level since March 2017.
Vancouver Real Estate
Vancouver Detached Real Estate Sees More Sales Than New Listings… Prices Still Drop
Vancouver detached real estate sales are up, but it didn’t quite stop falling prices – yet, at least. There were 599 detached sales in December, up 72.1% from last year. This brings sales volumes a couple of points under the 5-year median volume for the month. Even with the rise in sales volume, prices are still lower than last year.
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