Time for your cheat sheet on this week’s most important stories.
Canadian Real Estate
CMHC: Toronto And Vancouver Real Estate Delinquencies Rise, While The Rest Of Canada Falls
Toronto and Vancouver mortgage delinquencies are rising, while the rest of the country falls. The national rate of delinquencies reached 0.29% in Q1 2020, down 3.3% from last year. In Toronto it went the other way, hitting 0.11%, up 10% over the same period. Vancouver also saw a similar trend with delinquencies rising to 0.13%, up 8.33% from a year before. Each market has a unique range of delinquency rates, so it’s less important what the rate is, than what the change is. On the national level, things are improving – especially in places like Montreal, where it’s at a multi-year low. Toronto and Vancouver? Not so much.
Nearly 1 In 4 Canadians Have Now Used CERB, Canada’s Emergency Benefit
A lot of Canadians have used the Canada Emergency Response Benefit (CERB) since its inception. There were 8.51 million unique applicants as of Aug 2, up 3.25% from a month before. That’s about 22.42% of the total population, and 47.71% the size of the active labour force.
Canadian Households See Almost A Year Of Net-Worth Gains Wiped Out
The first quarter delivered a major hit to household net-worth across Canada. Canadians saw the aggregate estimate of net-worth fall to $11.29 trillion in Q1 2020, down 3.78% from the previous quarter. This is the largest single quarter decline in a decade, only last being beat by the one made in Q3 2008. For those about to check your timeline, that was just a couple of quarters before the Great Recession.
Canadian HELOC, Credit Card, And Auto Loan Delinquencies Rise To Multi-Year Highs
Mortgage delinquencies dropped at the national level, but they climbed in other segments. Auto loans made the biggest climb at 2.14% in Q1 2020, up 16.94% from last year. HELOCs also made a substantial increase to 0.17%, up 6.25% over the same period. Mortgages are actually the only major segment of credit to not reach a multi-year high for delinquencies.
Toronto Real Estate
Toronto Real Estate Joins The Flight To The Suburbs, As Inventory Rises In The City
Greater Toronto real estate is seeing a boom in the suburbs, especially detached homes. The local real estate board reported 11,081 sales in July, up 28.92% from last year. The City of Toronto represented 3,577 of those sales, up 15.01% over the same period. New listings failed to increase with sales in the 905, while it outpaced sales in the City. Most of the skew is due to rising detached sales in the suburbs, and a jump of condo listings in the City.
Vancouver Real Estate
Vancouver Real Estate Prices Just Below Pre-Pandemic Levels, As New Listings Jump
Greater Vancouver real estate sales are on the rise, but so are new listings. There were 3,128 sales in July, up 22.3% higher than the same month last year. The number of new listings reached 5,948, up 28.9% from last year. Despite the huge multi-year high in sales for the month of July, the increase in demand was partially offset by the number of sellers.
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