Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
The Canadian Government Launches Predatory First-Time Buyer Mortgage Scheme
The Government of Canada is taking steps to provide first-time buyers assistance, through “equity lending.” The move would see the government provide new homeowners with up to 10% assistance to buy a new home. It seems generous, until you look at when these programs are traditionally created. Moves like this are designed to reduce capital overhang, and transfer property from distressed homeowners to people that can afford to shoulder a loss for longer.
Billions In Toronto Real Estate Bought Anonymously, With Funds Of Unknown Origin
Looking to money launder some cash? It’s remarkably easy if you’re doing it with Toronto real estate. A new report from Transparency International Canada looks at corporate ownership of residential real estate in Toronto. They then look at the methods in which the deals were funded. Companies without clear beneficial ownership used over $20 billion in cash, funneled through methods that circumvent anti-money laundering controls.
New Home Prices Fall Across Canada For The First Time Since The Great Recession
Canadian new home prices are falling for the first-time in a decade, according to Statistics Canada. New home prices fell 0.1% from last year, right across Canada. Toronto made a larger drop, falling 1.53% from peak. Vancouver fell a little further as well, making a 0.28% decline from peak. The size of the decline isn’t significant, but it is the first time we’re seeing a decline since the Great Recession.
Canadian Real Estate Prices Go Negative For The First Time Since 2009
Canadian real estate prices are falling negative for the first-time since 2009. CREA reported the benchmark fell to $615,300 in February, down 0.13% from last year. Much like the decline in new home prices, the size of the decline is not significant. However, the decline is the first seen since before the Great Recession.
Toronto Real Estate
Toronto Detached Prices Down Over 10% From Peak, Inventory Rises To Multi-Year High
Toronto’s detached prices are down significantly from their all-time high. Greater Toronto detached prices have fallen 13.55% from the peak hit in May 2017. The City of Toronto fared slightly better, but is still down 10.77% from the peak hit in the same month last year. This is a large drop for any market, but considering the price of these homes – this is likely a loss of nearly 6 figures for many peak buyers.
Vancouver Real Estate
Vancouver Detached Real Estate Down Over $174k, Fewest Sales In Over 20 Years
Vancouver detached real estate prices are dropping, and fast. The price of a detached home across Greater Vancouver hit $1,443,100 in February, down 9.7% from the same month last year. There were just 448 detached sales in February, down 27.9% from last year. In addition to the brutal price decline, this is also the fewest February sales since 1998.
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