Time for your weekly cheat on the most important real estate stories.
Canadian Real Estate
National Bank of Canada released its quarterly affordability report, noting that this is the ninth quarter in a row to see affordability slip. They also note that this is the longest decline of affordability in over 3 decades, with Vancouver being hit the worst. It now takes the median family over 29 years just to save a downpayment for a home in Vancouver. That’s a huge climb from the average of 5 years required, since 2000.
Royal Bank of Canada expects Canadian real estate price growth to taper, and sales to decline. Analysts from the firm expect the typical home price to end 2017 at $490,600, up 11.1% from the year before. In 2018, they expect prices across the country to rise by just 2.2%. As for sales, they’re predicting 509,300 sales by year end, down 4.8% from 2016. In 2018, they see that number slipping another 4.2%, down to 488,000 sales across the country.
Land registry giant Teranet is seeing resale prices continuing to slide. Analysts observed a 1% monthly decline in October in their urban price composite, the largest single month decline since 2010. The drop was mostly led by declines in the Golden Horseshoe. Toronto, the largest component of the index, saw a single month decline of 2.8% in prices. Hamilton, another large Golden Horseshoe city, saw a monthly decline of 1.8%. Even with the decline, prices remain 10% higher than the same month last year
Overseas demand for Greater Toronto and Metro Vancouver pre-construction means we’ll be seeing foreign buying registries soar in the very near future. The foreign buying registry reports property transfers that have registered. Since pre-construction doesn’t register until the project is completed, sales that occurred months ago are going to be hitting the registry. Metro Vancouver has 40,901 units under construction, and Greater Toronto has 69,794, both at a near record. What does that mean? Numbers rising could be lagging demand of properties that were bought years ago. It doesn’t quite represent today’s foreign buying demand as much as people might hope.
Toronto Real Estate
Toronto condos had an uptick in prices, breaking a three month losing streak they were on. The benchmark price of a condo was $463,800 in October, 0.78% higher than the month before. Prices still remain 22.99% higher than the same time last year, even with that three month losing streak.
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