Time for your weekly cheat sheet on this week’s most important stories.
Canadian Real Estate
Vancouver Real Estate Is No Longer The Country’s Most Expensive Market
The price of a typical home across Canada is getting cheaper for the first time in years. The benchmark price across the country fell to $624,400 in May, down 0.64% from last year. The decline is small, but still the 4th consecutive and the largest since 2009.
Vancouver was hit notably hard, with the benchmark falling to $1,006,400, down 8.88% from last year. It was both the largest drop in the country, and it knocked Vancouver out of the spot as the country’s most expensive market. Oakville, a distant suburb of Toronto, is now the most expensive market in Canada.
Canadian Residential Investment Drops For A Fifth Quarter, Signaling Recession
Residential investment is still a massive part of Canadian GDP, but is on the decline. GDP numbers show its contribution fell to $134.30 in Q1 2019, down 5.08% from the same quarter last year. This is the 5th consecutive quarterly decline, and the largest since 2009. All of Canada’s previous recessions have kicked off with a decline in this segment.
Equifax: Canadian Credit Delinquencies Are Spiking, Seniors See Largest Increase
Equifax observed precursors to rising delinquencies last year, and the rate is now climbing. Toronto saw 1.16% of consumers turn delinquent in Q1 2019, up 3.6% from last year. Vancouver hit 0.74%, up 9.9% from last year. Montreal reached 1.22%, up 1.0% from last year. Overall the total rate is relatively low, but delinquencies are a lagging indicator. The growth rate is what is most concerning here. Especially with those aged 65+ who reached a demographic delinquency rate of 0.9%, up a massive 9.4% from last year.
Canada Has Never Had More Homes Under Construction At The Same Time
Canadian real estate is undergoing a large building boom. There were 228,984 homes under construction in May, up 3.58% from last year. Toronto, the largest market, is just one month under its all-time peak. Vancouver and Montreal have both hit new all-time highs for construction. This is the largest number of homes under construction in Canadian history.
Toronto Real Estate
Toronto Detached Real Estate Prices Still Down Over 10% After Two Years
Toronto detached real estate is warming up, but last year’s steep drop in sentiment means it’s far from hot. The price of a typical detached home reached $939,300 in May, up 1.09% from last year. While up, prices are still down 10.48% from the peak reached just two years ago. Sales ripped to 4,649 units, up 25.10% from last year. It’s a really big climb, but still one of the smallest May sales numbers in recent history.
Vancouver Detached Real Estate Is Now Cheaper Than It Was 3 Years Ago
Vancouver real estate is being hit hard, especially detached homes. The price of a typical detached home fell to $1,421,900 in May, down 11.5% from last year. In pricey West Vancouver, the typical loss over the past year is almost at half a million dollars. Prices for detached homes across Greater Vancouver are now lower than they were 3 years ago.
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