Top Stories Toronto

This Week’s Top Stories: Canadian Real Estate Sales Dropped 11% In 2018, and Home Equity Loans Are Soaring

Time for your weekly cheat sheet on this week’s most important stories.

Canadian Real Estate

Canadian Real Estate Sales Fell Over 11% In 2018, Biggest Drop Since 2008
Canadian real estate sales made a big drop last year, and that’s going to have consequences for the economy. Just 458,442 sales went through the MLS in 2018, down 11% from the year before. The number is 2.1% lower than the median number of sales over the past 10 years, and the largest drop since 2008. Beyond the sales numbers, the impact will be felt throughout the economy. Those lost sales mean $3.6 billion less spin-off GDP, and has the potential to kill 19,000 jobs. It’s kind of a big deal.
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Canada’s Money Supply Growth Moves Higher, But Still Points To A Slower Economy
Canada’s narrow measure of money supply is still falling from last year. The annual pace of growth for the M1+ fell to 4.7% in November, down 39.74% from the year before. The indicator is often used to get a read on future economic productivity. That is, we’re seeing another indicator pointing to slower economic productivity.
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Toronto Real Estate Demand Slips Lower, BC Real Estate Demand Plummets
The sales to new listings ratio, a proxy for relative demand, declined in most Canadian real estate markets. Only Montreal, Ottawa, and Quebec saw growth in December, when compared to last year. The rest of Canada’s markets saw further cooling.
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Canadians Using Real Estate For Personal Loans Accelerates For A 5th Month
Canadian loans secured with residential real estate reached a record high. The outstanding balance of credit reached $296 billion in November, up 0.7% from the month before. This represents a 4.72% increase from last year. This is the 5th consecutive month we’ve seen growth accelerate. People almost had these under control, darn it.
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Canadian Reverse Mortgage Debt Rises Over 30%, Sets New Record
Cash-rich, house poor Boomers are extracting home equity at a breakneck speed. The outstanding balance of reverse mortgage debt reached $3.48 billion in November, up 1.85% from the month before. This represents a 31.68% increase compared to the same month last year. The segment of debt might very well be the fastest in the country right now.
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