Time for your weekly update on the most important real estate stories.
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.
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.
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.
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.
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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