Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
Canadian Real Estate Prices To Make Double Digit Drop, Another Risk Agency Tells Institutional Investors
DBRS, the credit rating subsidiary of Morningstar, sees rising defaults coming to Canada. The firm warned institutions and investors that mortgage arrears rates could triple, in a modest scenario. They anticipate this will be the biggest hit to real estate since the early 1980s. Consequently, they expect prices to make double digit declines in Toronto and Vancouver.
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Canadian Households Are Deferring Almost $1 Billion In Debt Payments Per Month
Canadian households are asking banks for payment deferrals, and it adds up to a nice chunk of change. There were 720,000 requests for mortgage payment deferrals at just 13 CBA member banks, as of April 29. There were also 417,000 credit card payment deferrals requested at 8 CBA member banks. At the minimum payments, this works out to $950 million in deferrals for mortgages, and $32.16 million for credit cards. That adds up to a lot more interest being paid.
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Toronto And Vancouver Mortgage Delinquencies Rise To Multi-Year High
Canadian mortgages in arrears are falling, just not in Toronto or Vancouver. The rate of arrears across Canada reached 0.29% in Q4 2019, down 3.34% from a year before. This is the lowest level for the country in years. In Toronto and Vancouver however, the rate has begun climbing off of lows, and now sits at the highest level since 2016.
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Canada’s Mortgage Credit Growth Hits Multi-Year High, But It Isn’t What It Seems
Mortgage credit is growing across Canada, but it’s not the bullish consumer signal it appears. The balance of outstanding mortgage credit hit $1.64 trillion in March, up 5.3% from a year before. This is the highest rate of growth in years, but there’s a small issue. Some of the increase actually has to do with the number of payments being deferred. The lack of payments is helping numbers to swell more easily, without as big of an increase in new activity.
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Toronto Real Estate
Toronto Real Estate Sales See Worst April In At Least 25 Years
Toronto real estate sales had the worst April in at least 25 years. The region saw 2,975 sales in April, down 67% from last year. This is the lowest number of sales over the past 25 years of data for April. The impact has been mixed though, with the benchmark price still rising. However, average and median sale prices are both falling.
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Vancouver Real Estate
The Median Sale Price Of Vancouver Real Estate Takes A Dive
Vancouver real estate sales are dropping to the lowest level in decades. There were 1,109 sales reported in April, down 39.4% from last year. This is the fewest sales for the month since 1982, and it had a mixed impact. The benchmark price increased, however the median sale price made a big dip from the month before.
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What are you seeing on Ottawa real estate market? It was the hottest and with more and more foreign money following in, how will the market change?
Are there any statistics on the mortgage default rates and losses the $150 billion of sub prime mortgage garbage govt bought from banks (at 100 cents on the dollar) and dumped onto taxpayers via CMHC?
That so called “extremely safe” pile of junk mortgages that CMHC made taxpayers insure for banks at well below market rates. The same junk that no bank wanted to insure themselves despite profiting from creating the mortgage.
What a fraud of profiting banks creating junk mortgages and leaving taxpayers with the mess.