We know you’re busy, so we’ve assembled a cheat sheet on the week’s most important real estate stories. You’re welcome.
Canadian Real Estate
Canadian real estate prices were the fastest rising in the world, and now they’re claiming the opposite title – fastest falling. Numbers from the US Reserve Bank of Dallas show Canada had the fastest price decline in the world in Q3 2017. Canadian prices dropped 3.82% in the quarter, a little over 10x the second largest decline in the index. Prices are still 7.44% higher than the year before. Even with the drop, Canadian real estate is still one of the best performing in the world.
Juwai, China’s largest overseas real estate portal, has partnered with a group representing ultra high net-worth families. The firm will work with the Association of Family Offices in Asia (FAO), to develop programs to make it easier for high net-worth, and ultra high net-worth Asian families to buy foreign real estate.
Juwai CEO Carrie Law gave us a description of the deal, “Because these are high net worth investors and investment consortiums, we’re talking about things like large blocks of units, large developable sites, commercial property, and trophy residential assets.” Great news for agents dealing with ultra-luxury properties, the buyer pool increased. Also good news for developers looking to sell projects in large blocks, potentially reducing project failure and speed up funding. Bad news for affordability, since these investors aren’t exactly charities.
Canadian pensions are buying residential mortgage credit at a much faster rate than normal. The latest numbers from the Bank of Canada show pensions hold $27.7 billion worth of residential real estate credit. That’s up 37.49% from the year before, the biggest annual increase ever. Over the past 3 years, they’ve doubled the amount of credit they hold. Previous to that, it took 27 years to double.
Toronto Real Estate
The Toronto Real Estate Board (TREB) conducted its annual survey, and found there’s quite a bit of second homeowners in Greater Toronto. 18% of survey respondents said they own a second home, and it’s being rented out. More interesting was another 2% said they own a second home, and it’s vacant. That’s quite a bit higher than the official rental vacancy statistics we have for the city.
More inventory may be coming to Toronto, as more homeowners are planning to sell. TREB’s annual homeowner survey had 40% of respondents saying they plan on selling this year. That’s up from 33.3% from last year. Of those looking to sell this year, 75% plan on upgrading their home. Even more interesting is that means 25% have no immediate plan to buy another home. That 25% plans on renting, or moving in with their parents.
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