Time for your weekly update on the most important real estate stories.
Note: Vancouver’s data has been throttled recently, but don’t worry – we’ll be back with much more coverage starting next week.
Toronto Real Estate
We decided to visualize one aspect of the Toronto real estate madness, homes selling over ask. Over the past year, Toronto real estate went from a healthy market, to overheated, to who knows where we are? August 2016, the 416 saw 37% of sales sold over the asking price, by April 2017 that jumped to over 77%. Fast-forward to August 2017, and we see only 23.7% of homes sold over asking price. That’s a pretty big fluctuation in just over 12 months.
Toronto residents are filing for creditor relief on lower levels of debt. Consumer insolvencies are up 1.03% from last year. Breaking that down, bankruptcies are flat – but those filing for bankruptcy are doing so with higher levels of debt, and less assets. Consumer proposals, which are earlier insolvency intervention, are up 1.58% compared to last year.
Toronto real estate has seen a construction boom, but nothing quite like what’s scheduled for the next 60 days. According to Condos.ca, almost 17,000 pre-construction condo units will be listed for sales in the next two months. This is the largest number of units they’ve seen hit the market at the same time. This follows Census 2016 numbers, that show Toronto’s growth was vastly over estimated, with the city posting the worst population growth numbers in over 20 years.
Toronto real estate prices hit $750,800, up 12.22% from the same time last year. While prices are climbing active listings are up 69%, and sales are down 35%. When inventory is up, sales are down, and buyers are paying more – there should be a lot of questions about what’s driving pricing higher.
Despite sky high prices, the City of Toronto still has quite a way to go before the average family can no longer afford to buy. Currently with the benchmark price at $750,800 in September 2017, just over a million people can still buy with a conventional mortgage. That brings the total number of households that can “afford” a conventional mortgage to 49%, likely much more than most people think.
Vancouver Real Estate
Less people are filing for bankruptcy in Vancouver, but more are seeking early intervention. Total insolvencies dropped to 377, down 2.83% from the same time last year. Consumer proposals, which are a formal attempt to negotiate early relief from creditors, are up to 243 however. This is up 6.11% compared to the same time last year, meaning more people need early government intervention with debt problems.
Like this post? Like us on Facebook for the next one in your feed.