Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
All But Two Canadian Real Estate Markets Have Fallen From Peak Prices
Only two Canadian real estate markets are at all-time highs – Ottawa and Montreal. The Ottawa benchmark price reached $394,700 in December, a new record for the city. Montreal reached $348,700, also a new record for prices. Both markets appear to be booming, but that’s not really the case. Over the past 5 years, both markets grew at just half the pace of the national average.
Teranet: Canadian Real Estate Prices See Third Consecutive Monthly Decline
The Teranet-National Bank of Canada House Price Index is displaying lower prices across the country. The C11, an aggregate index of Canada’s 11 largest markets, saw prices fall 0.3% in December. This is the third consecutive month of declines, and brings price growth down to just 2.51% from last year. Prices are down 0.95% from the peak all-time high, which was hit in September 2018.
Canadian Real Estate Sales Plummet, Only One Major Market Sees Growth In December
Canadian real estate sales are still dropping very quickly. Only 21,909 sales went through the MLS in December, down 34.24% from the month before. This represents a 19% decline compared to the same month last year. That makes this the third slowest December in 10 years, just ahead of 2012 and 2008. In the midst of a global economic boom, home sales are printing numbers near Recession levels.
Toronto Real Estate
Urbanation: Toronto Rental Price Growth To Cut In Half As New Supply Hits In 2019
Urbanation, a Toronto real estate developer consultancy, expects rental price growth to cut nearly in half in 2019. The average rent in Q3 2018 reached $2,385, up 7.6% compared to the same quarter last year. Analysts firms noted that “the average tenant’s income is $65,000, which isn’t sustainable.” The income problem, combined with a flood of new supply, should cut rental rate growth down to 4 or 5%.
Toronto Condo Sales Fall To 2013 Levels, Prices Hit A New All-Time High
Toronto condo sales hit an all-time high, but sales fell to 2013 levels. TREB reported the price of a typical condo hit $509,700 in December, up 8.96% from last year. The number of units sold fell to 1,185 in December, down 23.4% from last year. This was the slowest December since 2013, and it’s worth checking out what’s happening to some of the other price indicators.
Vancouver Real Estate
Greater Vancouver Condo Prices Make Smallest Gain Since 2013, Drop In The City
The price of a condo across Greater Vancouver is nearly flat, as sales plummet and inventory soars. REBGV reported the typical condo across the region reached $664,100 in December, dropping 6.4% over the past 6 months. Prices are now up just 0.6% from last year, with much steeper drops being observed in the City of Vancouver. Sales fell to 535 in December, down 47.95% from the same time last year. At the same time, inventory popped to 3,771 active listings, up 118% from last year. Low to negative price growth is exactly what we would expect to see as sales drop and inventory rises.
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