Time for your weekly cheat sheet on this week’s top stories.
Canadian Real Estate
Teranet: Canadian Real Estate Prices Decelerate, Toronto Plunges Further Negative
Canadian real estate prices are quickly decelerating according to the Teranet-National Bank of Canada House Price Index. Prices increased 0.94% in June, bringing the annual price increase to 2.87% from last year. Despite prices rising almost a point in a single month, the annual gains tapered closer to zero. That’s a big change from the 14.16% we saw in June 2017.
Canadians Hold Onto Less Cash As The Great Deleveraging Begins
The Bank of Canada’s M1+ measurement, the most liquid form of money, is seeing declining growth. Growth fell to 4% in May, down from 11.6% last year. This is a huge drop from just a month ago, when it was 5.5%. The BoC typically considers the slowing growth of the M1+ as a sign of slowing economic activity. This round of slowing is most likely a result of higher interest rates.
Toronto Real Estate
Toronto Detached Real Estate Sales Rise, But Still The 2nd Worst June In At Least 7 Years
Coming off of record years, Toronto real estate has seen sales slide to multi-year lows, especially in the detached segment. The Toronto Real Estate Board (TREB) reported a benchmark price of $931,600 in June, a 9.3% decline compared to last year. The decline is smaller than May’s 10.3% decline, but price growth is still negative. On the upside, less equity is being wiped out by the day.
Buyers Remorse? Here’s How Many Toronto Real Estate Buyers Walked Away Last Year
The Toronto real estate market saw a spike in people that walked away from their offers last year. March 2017 saw 1.02% of sales cancelled before the transfer, much higher than the 0.64% the year before. April 2017 saw 1.39% of sales cancelled, up from 0.57% the year before. May 2017 saw 1.28% of sales cancelled, up from 0.62% the year before. Yes, the number of sales cancelled after being reported nearly doubled over the period when prices increased the most. Hm…
Toronto Hits A Multi-Year Record For New Condos Under Construction
The number of new homes under construction in Greater Toronto is just below the all-time high hit in March. 70,709 units are under construction as of June 2018, an increase of 3.87% from last year. The peak was just a tiny bit higher in March 2018, when 72,344 units were under construction. For context, Greater Toronto averaged an increase of 68,995 people per year, with an average household formation of 2.7 people per home. There’s a few years of homes currently under construction.
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