Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
The Canadian Real Estate Industry Lowers 2019 Sales Forecast For A Third Time
The Canadian real estate industry is lowering their forecast for a third time. CREA now expects 458,200 sales in 2018, down 11.2% from the year before. The decline is another downward revision, from a 9.8% decline in September and a 7.9% decline in February. The most recent revision means they’re expecting the fewest December sales in years.
Canadian Real Estate Sales Drop Over 12%, Vancouver’s Decline Is Almost 3x Larger
Speaking of those downwards sales revisions, Canadian real estate sales continue to slide. CREA reported 33,318 sales in November, down 12.54% compared to the same month last year. This is the 11th consecutive month we’ve seen declines, and the trend seems to be pointing to lower sales.
British Columbian Real Estate Markets Are Still The Fasting Cooling In Canada
Canadian real estate demand is slipping in all but three cities in the country. Montreal, Ottawa, and Quebec City all saw their SNLR rise when compared to last year. The indicator, a relative measure of demand, weakened across the rest of the country.
Toronto Real Estate
Toronto New Condo Sales Fall Over 53%, Inventory Spikes Higher
New Toronto real estate and pre-sales are seeing higher inventory, as sales continue to decline. There were 2,823 new home and pre-sales in November, down 20.59% from last year. City of Toronto condos represented the largest decline, where 1,124 units were sold, down 53.64% from last year. No, it wasn’t because of tighter inventory. There were 16,797 units for sale at the end of the month, an increase of 42.49% from last year.
Toronto Condo Prices Slip From All-Time Highs, Weakest November Sales Since 2013
Condo prices are just off of all-time highs in Toronto, but sales are slipping fast. The benchmark price was $506,700 in November, up 9.35% from last year, but down from the month before. Only 1,891 sales occurred in November though, down 14% from the same month last year. The number of sales makes it the fewest November sales we’ve seen since 2013.
Vancouver Real Estate
Vancouver Real Estate Pre-Sales Fall 62%, New Launches 31% Below Expectation
Vancouver real estate pre-sales dropped, and potentially delaying more inventory. There were just 487 sales in November, down 62% from last year. Meanwhile 1,298 new units were launched last month, an increase of 38.89% from last year. While that’s a lot of units launched, it was 31% below the industry forecast for the month. That means even more inventory could launch at a later date, as sales continue to decline.
Vancouver Condo Prices Make Largest Single Month Price Drop… Ever
Greater Vancouver condo prices made the largest monthly drop in the history of the benchmark index. REBGV reported $667,800 in November, down 2.29% from the month before. The annual rate of growth is now just 2.3% for condos across the board. The big story however, is that $15,700 monthly price drop. The benchmark is a multi-month average, meaning you’d need an even bigger drop to make such an abrupt movement.
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