We know, you were busy last week. Don’t worry, here’s your cheat sheet on the most important stories in real estate.
Canadian Real Estate
Canadian mortgage debt is still growing, but is slowing down quickly. Total outstanding mortgage credit is $1.51 trillion as of December, a 5.54% increase compared to last year. The healthy sounding rate of growth is the slowest it’s been since December 2014. The slowing growth is actually a big red flag, that investors should be watching closely.
Canada has been a hub for wealthy immigrants since… well, a looong time, and that’s starting to change. New World Wealth (NWW), a firm that tracks the trends of high net-worth families for institutional reports, observed the largest wealth migration in history last year. 2017 saw 95,000 wealthy families immigrate to new countries, a 15.8% increase from the year before.
Canada did not benefit from that increase. Only 5,000 wealthy immigrants landed in Canada in 2017, a 37.5% decline compared to the year before. This brings the total level of wealthy immigrants back down to 2015 levels.
Foreign buyers now represent that largest share of the mortgage market in recent history. Numbers from the Canada Mortgage and Housing Corporation (CMHC), saw 2.6% of mortgages in Vancouver go to non-permanent residents in 2016. That’s more than double the 1.1% share of mortgages in Toronto, and more than 5 times Montreal’s 0.5%. Click through to see how this trend applies to younger borrowers, and how it’s evolved over the past 3 years.
Toronto Real Estate
Toronto quietly set a new record in January, that most agents aren’t talking about. The median sale price of a house in Toronto is now $625,000, a 0.95% decline from the year before. That doesn’t sound like a big deal, but it’s the first annual decline of the median sale price since May 2009. Click through to find out what this means.
Toronto real estate is off to a cooler start in 2018. Sales are still sliding, and inventory is on the rise – making it harder for prices to climb. The benchmark price is now $743,200, a 5.16% increase compared to the year before. That’s still a substantial gain, but it’s the lowest growth of home prices in Greater Toronto for some time. The last time the rate of growth was this low was in September 2013.
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