Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
Canadian home buyers not delivering a downpayment after agreeing to buy a home is on the rise. A Greater Toronto broker is seeing an uptick of buyers not delivering a down payment. The broker has confirmed the unusual September uptick with other brokerages across the GTA. They suspect it’s a Canada-wide trend as well.
Canadian mortgage debt has grown disproportionately large compared to the economy. Mortgage debt is now equivalent to 84.3% of GDP in Q2 2020, up from 69.1% last year. In 2000, mortgage debt was just 39.6% of GDP. Mortgage debt has grown faster than the Canadian economy for a prolonged period of time, and it’s beginning to show.
The Canadian population is slowing due to the pandemic. Stat Can estimates the population reached 38.01 million in Q3 2020, up 411,854 (1.10%) from last year. This the slowest annual rate of growth since 2016. The slowed growth is largely a result of reduced immigration, which came to a halt once the pandemic hit.
Canadian mortgage credit growth has been slowing. The balance of mortgage debt hit $1.69 trillion in August, up 5.23% from last year. Growth is still higher than last year, but this is the first-time it’s fallen to pre-pandemic levels of growth.
Toronto Real Estate
Toronto condo rental inventory is rising, and renters are failing to keep up. There were 7,901 units for lease in September, up 96.4% from last year. There were 3,477 leases signed in September, up 44.9% from last year. Inventory is increasing at a significantly faster pace than renters.
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