Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
Canadian Seniors Now Owe Over $3.88 Billion In Reverse Mortgage Debt
Reverse mortgage debt reached a new record high in Canada, but the rate of growth continues to slow. The balance outstanding was $3.88 billion in September, up 26.43% from last year. In dollar amounts, $50.82 million in September, and $811.62 million since last year. This is a slightly faster rate of growth than the month before. The month before, already being a very, very high rate of growth.
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Young Canadians Experience More Inflation Than Older Ones
Here’s something any young Canadian could have told you – they experience higher inflation. Despite Canada’s “low” inflation, some segments such as tuition are up over 900% from the 80s. On the other hand, things like food and clothing have experienced much lower levels. Why does that make it harder for young people? Only certain costs, like tuition, are typically carried by younger demographics. This means approaching adulthood with much higher barriers than previous generations. Despite the fact that inflation is only a couple of points right now.
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BC Is Canada’s Eviction Capital, Here’s How Your Province Stacks Up
Over 330,800 Canadians were “forced” to move, through foreclosure or eviction. That represents 2.2% of households across the country. British Columbia leads the country for evictions in the province, with 4.1% of households forced to move. That’s 86.4% higher than the national average. Ontario, where the bulk of evictions happen, only had a rate of 2.3% of households evicted in the year. BC’s heavy eviction rate makes Ontario’s higher distribution almost seem reasonable.
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Canadian Household Borrowing Rates Rise In November
Canadian households are still borrowing for cheap, but it’s getting more expensive. The effective interest rate reached 3.72% on November 22, up 0.54% from last year. Rates are down 6.06% from a year ago, but the gap between last year’s rates and this years is narrowing. What does this mean? Borrowers could qualify for less house, or pay a lot more in interest.
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Toronto Real Estate
Toronto New Home Inventory Rises To Highest Level In Years, Sales Data Revised Higher
Greater Toronto is seeing inventory rise to the highest levels in years, as sales in the city decline. There were 19,718 new homes for sale in the region, up 5.19% from last year. This is 21.09% higher than the same month in 2017 – when it was considered a relatively tight market. The fast rising inventory dropped the sales to active listings ratio to 23.94%, down half a point from a year before. Most of the absorption weakness if coming from the City of Toronto, proper – where sales are falling. The 905 on the other hand, is more than making up for losses in the City.
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Vancouver Real Estate
Greater Vancouver New Home Sales Fall Over 69%, Developers Throttle New Inventory
Greater Vancouver new home sales are falling, causing developers to delay unit releases. Only 302 of the units released in October were sold, down 69.52% from last year. There were 671 units launched in total for the month, down 72.24% from last year. The launch number is actually 31.39% lower than forecasted for release. A number of new projects have been delayed until demand starts to pick up. However, that interesting dynamic also means developers are racking up a backlog of project units.
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