This Week’s Top Stories: Toronto New Home Sales Surge, While Vancouver Real Estate Demand Disappears

Time for your cheat sheet on this week’s most important stories.

Canadian Real Estate

Canadian Household Debt Had The Slowest May Growth Since 1983
The growth rate of Canadian debt continues to fall to levels not seen in years. Bank of Canada estimates the balance of household debt reached $2.19 trillion in May, up 3.4% from last year. The annual rate of growth is the lowest rate seen in May since 1983. The rate of growth declining may appear to be a good thing, but presents hurdles in a credit driven economy like Canada.
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Canadian Businesses Are Going Broke At The Fastest Pace Since 2016
Business insolvencies have reached the bottom, and are now reversing course. There were 316 insolvencies filed in May, up 0.32% from last year. Year to date (YTD) there have been 1,651 insolvencies, up 6.93% from last year. The monthly increase appears to be small, but it helps to push the YTD number to the highest level since 2016. That’s an abrupt change, considering these numbers have been on the decline for years.
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Canadian Mortgage Debt Prints The Second Slowest May In At Least 3 Decades
Mortgage credit growth continues to slow, even with borrowing rates spiraling lower than the month before. Mortgage debt hit $1.56 trillion in May, up 3.64% from last year. The increase puts the total dollar value at the highest level ever. However, the annual rate of growth fell to the lowest number in 29 years for May, with the exception of 2001. That year the Bank of Canada made multiple cuts to kick up mortgage credit growth once again.
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Toronto Real Estate

Greater Toronto New Home Sales Increase 94% To Highest Level In Over 16 Years
New home sales in Greater Toronto printed the strongest May in at least 16 years. There were 4,794 sales in May, up 93.93% from the same month last year. Year to date (YTD) sales were only up 13,734 units in May, up 45.25% from last year. On a monthly basis, May is a huge leap above any other seen in well over a decade. YTD was still the second fewest sales in the past decade though. This takes away much of the spike in sales, since most demand was likely squeezed into a single month. Not quite the surge headline number allude to.
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Toronto Real Estate Sales Jump Over 9%, Still Down Significantly From Normal
Toronto real estate sales climbed from last year, but are still far below normal for this time of year. TREB reported 8,860 sales in June, up 9.62% from last year. That huge jump still only brought sales to 9.6% lower than the 10 year median for the month. Big jump from last year, but still very low compared to the past decade.
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Vancouver Real Estate

Greater Vancouver New Home Sales Drop Nearly 90%
Greater Vancouver new home sales made a huge drop from last year. There were 119 pre-sale homes made in May, down 89.10% from last year. The sales are the fewest for any month in the past two years – not just May. Once again, developers have responded by cutting or delaying the launch of future projects.
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Greater Vancouver Real Estate Hits 19 Year Low For Sales, Inventory Rises Over 25%
Greater Vancouver real estate sales continue to fall across the board. REBGV reported 2,077 sales in June, down 14.4% from last year. The number of sales for June were down 34.7% from the 10 year average for the month. This past June was the slowest since 2000.
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