Time for your weekly update on the most important real estate stories.
Canada
Canadian Real Estate Prices See Largest Single Month Decline Since 2008
Canadian real estate experienced the first substantial decline in a long time. The benchmark price of a composite homes across the country fell to $607,100, a 1.52% decline from the month before. The $9,400 decline is the largest seen since December 2008.
Toronto
Toronto New Construction Prices See The Worst July Since 1993
New construction prices are dropping in a way they haven’t in a long time. CMHC numbers show the median price of sold new construction in Toronto dropped to $675,000, a 20.59% decline from the month before. This brings the median price back down to January 2016 levels, and is the worst decline for a July since 1993.
Toronto Detached Real Estate Prices Drop Up To $200,000
Keeping with the trend of cooling real estate prices in Toronto, detached resale prices are dropping fast. Sales of detached units are half of what they were the same time last year, causing inventory to rise. The softer market resulted in prices dropping up to $200,000 in some neighbourhoods.
Vancouver
Vancouver’s Mortgage Delinquencies Hit A Record Low
A frothy real estate market in Vancouver is sending mortgage delinquencies to a record low. Only 0.15% of mortgages were delinquent at the end of 2016. From 2013, this number declines more than 4x faster than the national average. The artificially low rate implies that incomes are booming, or the market is overly liquid. Fun fact, incomes aren’t booming.
Vancouver Detached Real Estate Hits An All-Time High In 2017…Again
Detached real estate prices are rising, but at a much slower rate than last year. The benchmark price for a detached home in Vancouver hit $1,612,400, a 2.16% increase from the same time last year. This is both an all-time high, and a substantially lower annual increase in price than seen recently.
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Greater Vancouver area house prices will keep rising. It’s economics. Demand is there. Your articles have been talking about Vancouver markets for months and months! If ANYTHING, prices may just slow a little bit. A house anywhere in Greater Vancouver at this point will be worth millions more in a few years, so anyone sitting on any property in the lower mainland will be multi millionaires. Still a good time to buy and make big gains in the future. We’re not America! And what does frothier mean? So ambiguous. Nothing is wrong with the Vancouver markets. You can’t prove this point as wrong with anything conclusive!
Property Guy,
Head over to Zolo.ca they gather recent data. Search Vancouver and click on the market stats tab and scroll to the bottom of the page. You will see a median price chart. Prices peaked May 26th. Click on the average price box and you will also see average price peaked on May 26th as well.
The average price was $1,458,981 on May 26th.
The average price as of Aug. 12th was $1,135,889.
Prices in the past 3 months in Vancouver have gone down $323,092.
Nothing ambiguous about that. The unknown is whether it continues. However, three months does make a trend and what you are saying is as pure speculation as what you are criticizing the author for.
“A house anywhere in Greater Vancouver at this point will be worth millions more in a few years…”
Where exactly do you think this money is going to come from?
I assume foreign investors. I’d be surprised though. The province and city will figure out ways to better help middle income voters. Sorry, I meant to say they will try, not sure if they will succeed.
Just to clarify, is it purely the city of Vancouver or the greater Vancouver area?
In any case, this website is geared with a bias that for months has claimed the Inpentrable Vancouver area (Vancouver, Burnaby , etc) are headed for choppy waters. Never happens and won’t happen.
Market is up, up. People should invest as much as they can. Money maker. People are sitting on millions of dollars of home equity. What other place offers that?
The flaw in your argument can be plainly seen between your own words. “What other place offers that?” That’s exactly the point – no other place has a market that just fly upwards forever. Vancouver is not some special exception. There’s a wild amount of inflation due to speculation, but speculative markets deflate as well. Do you think demand itself is some kind of free energy machine? Tell you what. Set a calendar item to come back and read your comments here in 5 years. If every home in Vancouver is worth millions more as you say, I’ll eat my shirt. Literally. With a knife and fork.
“In any case, this website is geared with a bias that for months has claimed the Inpentrable Vancouver area (Vancouver, Burnaby , etc) are headed for choppy waters. Never happens and won’t happen.”
Can you point to one article on this site that claims Vancouver is heading for choppy waters? I read this blog every day, and know they have never said that. You’re just playing division politics to seem like you’re “smarter.”
Pro tip, if you were actually smart, you wouldn’t advocate investment into a single asset class. Every retard that makes a few bucks thinks they’re geniuses when they concentrate in a bullish asset, then never talks about the money they lose when they take a hit from lack of diversification.
Josh,
Okay, I’ll go with your argument that demand isn’t like free energy. But the Vancouver area is hailed as a world class city. Foreigners love it here. Foreign money loves this place. So even if it isn’t worth millions more , the average home will probably see at least a continued $100,000 increment year on year. So even if it slows, 10 years = 1 million. That would be in the shittiest of situations. People have been talking about a bubble for years. Why do we need a five year wager anyway? Prices will have increased further by then, even if only marginally day $100k/year. Do you agree that even in the worst case situation prices increases will only slow down? Fortunately (or unfortunately) this is the way it is. Canada has a sound economy and one of the best and prudent banking systems in the world. This is not the u.s. Mortgage debt here is safe and secure. I don’t think there is any challenge to that fact. Real estate markets are flourishing, which is why inventory sells. If people don’t have money how are people buying???
If mortgage debt is so safe and secure why was Home Capital going bankrupt and in need of a bailout. The problem in Canada wasn’t traditional banks it was subprime lenders that don’t fall under any regulations. The only reason the OSFI is going to expand the stress test to any mortgage regardless of the 20% down is that $1,000,000 doesn’t buy what it used to and regular citizens with modest incomes were purchasing modest homes for that and overextending themselves and $700,000 of the $800,000 mortgages that were sitting on big 5 balance sheets because homeowners were getting topped up by subprime lenders like Home Capital. That has put risk on Big 5 banks inadvertently. This has been going on all over Vancouver and the GTA.
Homes in the Vancouver will not be worth “millions more” in a few years that’s just silly.