Time for our weekly round up on Canadian real estate. China’s capital controls continued to impact Mainland Chinese buyers, the Canadian government is warning about car loans, Toronto homeowners are cashing out, and Vancouver is seeing higher prices again.
Capital Controls Continue To Halt Mainland Chinese Real Estate Buyers
One month is a blip, but three and we should start to take note. China’s capital outflows have been inflows for three months in a row now. This means more money entered the country than left. This comes after China adopted new rules around the exchange of yuan, prohibiting the exchange for the purposes of real estate transactions. So does your neighbourhood have Mainland Chinese buyers? If so, they’re the kind without cash.
Canadians Are Buying A Record Number Of New Cars, With A Record Amount Of Financing
More concerns about the Canadian consumer debt levels are bubbling up. The government quietly warned internally that more Canadians are taking on much longer financing terms to buy a vehicle, and they’re doing so at a record pace. The average buyer is now taking out a 72 month loan, trading it in after 4 years, and transferring the old vehicle’s debt to the new one. The worst part? More than a quarter of all of these loans are subprime, with interest rates as high as 29%. Yikes.
Toronto Real Estate Agents Are Losing Their S**T Over These Charts
The divergence of supply and demand in Toronto’s detached market is cranking up. Detached units are being listed at a much higher pace than the past 5 years, not something that normally happens in a “hot market.”
Obviously, if you’re looking to buy don’t let the market scare you. Flip through this article for some questions to ask your agent. If they won’t acknowledge any of the issues, or they downplay the risk – find a new agent. That should signal that they’re less concerned with you buying the right home, as they are with closing a sale.
Millennials Are Flocking To Toronto, But We’re Not Sure Why
Toronto’s millennial population is increasing, and here’s an interactive map of where they’re moving. The raw potential is in the city, but will politicians be able to tap the potential? Because they sure as heck aren’t doing it right now.
Toronto Homeowners List Detached Homes For Sale At A Record Pace
Concerns of “trapped” paper wealth look like they’ll be unfounded, as Toronto detached homeowners are looking to realize their windfall. New detached listings hit a multi-year high, while sales dropped. Mysteriously, buyers still bid up prices. Because in Toronto, higher inventory and less sales, equals higher prices apparently.
Suburban Vancouver Sees The Highest Price Increases For Detached Homes
Vancouver’s detached market had a slow start to the year, but it’s starting to warm up. The benchmark added $27,000 in just four weeks, bringing the price to $1,516,500. This is an 8.1% increase from the same time last year.