This Week’s Top Stories: New Condo Sales Plummet In Toronto, and Canada’s HELOC Problem Is Over 3x Worse Than The US

Time for your weekly cheat sheet for this week’s most important stories.

Canadian Real Estate

Canada’s HELOC Problem Is One Of The Biggest Risks For Real Estate
Canada’s home equity line of credit problem has reached epic proportions. The balance of outstanding HELOC debt reached $286.81 billion in Q2 2018, up 1.83% from the quarter before. That makes HELOC debt 12.89% the size of the country’s GDP. The good news is it’s down from 13.17% in Q2 2017, but the ratio is still very high when compared to the US. HELOC debt peaked at less than 5% before the Great Recession, and fell to just over 3% today. Is the scale of Canada’s HELOC problem a little more clear?
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Toronto Becomes Canada’s Most Expensive Rental Market, As Vancouver Prices Drop
Toronto was crowned the most expensive rental city, as Vancouver prices fell. The average Toronto 1 bedroom rental price reached $1,862 in June, up 1% from the month before. Meanwhile in Vancouver the price fell to $1,833, down 5.4% from the month before. The massive fall in Vancouver was enough to knock it from the top spot.
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Canada’s Fastest Growing Real Estate Prices Aren’t In Toronto Or Vancouver
Canada’s fastest growing real estate prices are in British Columbia, and not in Vancouver. The fastest rising prices were in Fraser Valley, where a typical home cost $831,300 in June, up 13.83% from last year. Vancouver Island is in second, with the price of a typical home  hitting $489,800, up 13.75% from last year. Next up was Victoria, with a typical home price hitting $672,800, up 8.24% from the year before.
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Toronto Real Estate

Toronto Sees New Condo Sales Fall Over 52%, Inventory Spikes Over 63%
Toronto’s new condo sales are in rapid decline. Altus Group, a real estate consulting firm, reported 855 sales in July, down 52% compared to last year. That’s on top of the 20% decline the market saw last year, bringing July 2018’s sales about 62% lower than those in 2016. To complicate the issue further, inventory is also on the rise.
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Toronto Tops North American Crane Count, And There’s 400 More Projects Proposed
Toronto topped North American cities for crane counts once again. Toronto has 97 active construction cranes at the end of Q2 in 2018, up 9 cranes from last quarter. The next city down the list was Seattle with 65 cranes, up 20 from the previous quarter. Toronto has nearly 50% more high-rise cranes building than the next city on the list.
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