Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
Over 1 In 10 Mortgages Issued In Canada Are On An Already Mortgaged Home
The Canada Housing and Mortgage Corporation (CMHC) found that multiple mortgages on the same home is on the rise. Analysts counted 145,013 new loans on already mortgaged homes in Canada, up 4.16% from the year before. That’s 15.12% of all mortgage originations, or over 1 in 10 mortgages in Canada.
Canadian Households See Borrowing Costs Rise To Highest Levels Since 2011
The cost of borrowing is on the rise across Canada. The BoC effective rate increased to 3.77% at the end of July, up 18.55% from the same month last year. The effective rate is a blended rate that reflects rates consumers are likely to face in the real world. This is the highest level we’ve seen since May 2011, and the fastest increase we’ve seen in a very long time.
Teranet: Canadian Real Estate Prices Continue To Decelerate, Smallest Growth Since 2009
The Teranet-National Bank of Canada House Price Index (Teranet HPI) shows higher prices across the country. The C11, an aggregate of prices in the country’s largest markets, increased 0.78% in July. This represents an increase of 1.75% from the same time last year. The good news it’s positive, the bad news is those numbers are much slower than usual. The average increase for July has been 1%, and the annual increase is the smallest we’ve seen since 2009. Canadian real estate prices are so far trailing historic performance.
Toronto Real Estate Sales Lead Canada For Growth, BC Leads The Declines
Canadian Real Estate Association (CREA) numbers show that real estate sales continue to drop across Canada. Unadjusted sales fell to 41,872 in July, down 1.71% compared to last year. Only 3 markets saw sales increase in July, and the majority of declines were in BC. Fraser Valley, Vancouver, and Victoria are now home to the fastest falling sales in Canada.
Toronto Real Estate
Toronto Condos Squeeze Out The Smallest Price Change Since August To Print New High
Toronto condo prices moved higher in July to print a new all-time high. The Toronto Real Estate Board (TREB) reported the City of Toronto condo benchmark reached $530,200, up $900 from the month before. More interesting, this is the smallest price increase since last August.
Vancouver Real Estate
Vancouver Condo Inventory Jumps 66%, Largest Monthly Price Decline Since 2012
Vancouver condos saw prices slide, as inventory surged. REBGV reported the price of a typical condo reached $700,500 in July, down 0.5% from the month before. That was accompanied by sales sliding 26.5% from last year, and inventory surging 66.96% from the same time. Lower sales, higher inventory, and lower prices – makes sense.
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