Time for your cheat sheet on the most important real estate stories this week.
Canadian Real Estate
Land registry behemoth Teranet, along with National Bank of Canada, released their monthly update on Canadian real estate. The 11 city index shows a 0.8% drop in September, the largest since September 2010. Most of the decline was due to Toronto, which showed a whopping 2.7% drop in September.
The Federal Reserve Bank of Dallas publishes “exuberance indicators” for real estate markets. These indicators are used for assessing when housing markets present a risk of correction. Problem is, only central bankers and academics know how to read these indicators. We break down how to use them, and look at Canada. Turns out the bank has been publishing quiet warnings about Canada for the past few quarters. Even using the words “most at risk” to describe the country.
Canadian Real Estate Association numbers show dollar volumes are dropping around the country. There was $19.03 billion in real estate sales for September, down 8.5% compared to the same time last year. This brings total sales to $208.5 billion year-to-date, down 1.5% compared to last year. While that doesn’t seem all that bad, most of the dollar volume was concentrated in the beginning of the year.
New World Wealth (NWW) released their list of the world’s most expensive markets. Wealth analysts from the firm ranked Toronto and Vancouver amongst the most expensive cities in the world. Toronto came in 21st, more expensive than the spectacular real estate bubbles in Shanghai and Beijing. Vancouver came in 27th, ironically placing between two wealthy resort towns.
The rate of homeownership dropped across the country. The rate now sits at 67.8%, a 1.73% decline from Census 2011. This is the first drop in over 45 years, and brings the country back to pre-Great Recession levels of ownership. The most important part for the market here, is homeownership dropped the most amongst those under 35. This could present liquidity concerns for the country’s rapidly aging population.
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