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This Week’s Top Stories: Canadians Pump A Ton Into Real Estate Investment, As New Home Prices Fall

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.
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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.
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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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