Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
Canadian Household Credit Growth Barely Moves, Annual Growth Falls To 1983 Levels
Canadian debt reached a new record high, but barely. The balance of household debt reached $2.16 trillion in February, up 0.01% from the month before. The annual pace of growth is now just 3.2%, the slowest it has been since 1983.
Canadian Borrowing Rates Hit The Highest Level Since 2009… Then Collapse
Borrowing rates hit a new multi-year high, before lenders began slashing them. On March 8th, the effective borrowing rate reached 4.02%, the highest level since the same week in 2009. By March 29th, it fell to 3.97% – still 9.67% higher than the previous year, but slashed from a few weeks before.
Canadian Mortgage Growth Slows To Levels Not Seen Since The 1983 Recession
Mortgage growth wasn’t immune to slowing credit conditions. The balance of outstanding mortgage credit reached $1.55 trillion in February, up 3.2% from last year. The 3.2% annual pace of growth is 37.25% lower than last year, and the slowest pace since June 1983.
Canada’s Money Supply Growth Is Pointing To A Slower Economy
One measure of Canada’s money supply is pointing to a slower pace of economic productivity. February’s M1+, a narrow measure of Canadian “cash,” grew 3.7% from last year. The annual pace of growth is 45% slower than the same month last year, and makes this past Feb the slowest since 1995. Considering the economy was recovering from a recession in 1995, this isn’t a level we want to see.
Toronto Real Estate
Toronto Real Estate Sales Fall To Lowest Level Since 2009 Recession
Toronto real estate prices moved higher, but relative demand keeps slipping from highs. The price of a typical home reached $779,100 in March, up 2.6% from last year. The number of sales however, fell to 7,187 – 0.01% lower than last year, making it the slowest March since 2009. Inventory on the other hand reached 15,576, down 2.47% from last year. Even though inventory is down, it’s actually up in the city – and TREB’s second highest level since 2014.
Vancouver Real Estate
Vancouver Real Estate Sales Fall To 1986 Levels, Inventory Rises Over 50%
After an epic run, Vancouver real estate is being slaughtered on the three big indicators. The price of a typical home fell to $1,011,200 in March, down 7.7% from last year. Sales dropped to 1,727 sales, down 31.4% – making it the fewest since 1986. Inventory increased to 12,774 active listings, up 52.4% from last year. Lower prices, fewer sales, and higher inventory.
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