Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
Canada’s Residential Investment As A Percent Of GDP Is Dropping, But Still Elevated
Canadians are still pumping in a massive amount of cash into real estate investment. Residential investment reached $46.04 billion in Q3 2019, up 3.45% from a year before. The amount, represented 7.68% of GDP, down from the record high of 8.69% in Q2 2016. The country is less dependent than it was, but this amount is still very much elevated. When compared to the US, Canadians devote twice as much to residential development.
Canadian New Home Prices Fall, Dragged Lower By Toronto And Vancouver
Canadian new home prices are slipping, as notoriously expensive markets lead the index lower. New home prices fell 0.10% in November, compared to the same time last year. This was mostly due to Toronto’s 0.97% decline, and Vancouver 2.76% drop. Cities like Ottawa and Montreal are seeing their numbers print huge growth for now.
Western Canadian Real Estate Prices Just Won’t Rise
Canadian resale real estate prices are pushing just a clip higher than inflation. The price of a typical home in Canada hit $638,300 in November, up 2.55% from last year. CPI’s most recent print was 2.4% for context. Most of the slow growth was due to Western Canadian real estate markets, which placed a drag on the whole index.
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