Time for your weekly cheat sheet on the most important stories in Canadian real estate.
Canadian Real Estate
The real estate industry listens very closely to the Bank of Canada, but how useful is it. Yes, they are comforting statements and help us feel more bullish about the economy. But what if we told you the US Federal Reserve was saying the same thing about the US before the Great Recession? We put together a quick quiz, can you tell who said what?
Canadian real estate sales continue to decline. CREA reported 36,373 sales in May, a 15.03% decline compared to last year. This is the slowest month for sales since December 2012, and the worst May in over 10 years.
Loans secured against residential real estate climbed, largely due to personal consumption. Personal loans secured by real estate, such as HELOCs, hit $254.75 billion, up 6.49% from last year. Business loans secured by real estate fell to $25.02 billion, down 10.88% from last year. Generally speaking, you want business loans to rise, and personal loan growth to taper.
Toronto Real Estate
New mortgage volumes are dropping quickly in Greater Toronto, as sales cool. Q1 2018 saw $26.55 billion in mortgage originations at traditional lenders, a 25.3% drop from last year. The decline is exclusive to traditional lenders, as subprime saw mild increases in volume.
Toronto condo sales might be dropping, but that didn’t stop prices from hitting a new high. TREB reported a benchmark of $501,000 in May, an 8.29% increase from last year. This is a new record for condos in both the suburbs and the city. Despite the record for prices, sales dropped and inventory jumped to a 21 month high.
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