Time for your weekly update on the most important real estate stories.
Bankruptcies in Toronto are on the rise, bucking the national trend. Our analysis of consumer bankruptcy filings show 824 bankruptcy filings with Greater Toronto postal codes in June 2017, a 4.16% increase from the same month last year. Total outstanding liabilities in these filings add up to $44.1 million, against a $7.32 million in assets.
Toronto real estate prices are taking a dive. The benchmark composite price in the city is now $755,400, which is a 7.4% decline from the May peak. Prices are up 14.25% from the same month last year however, which is still a generous gain.
The price of a home in Vancouver is still on the rise. August 2017 saw the composite benchmark, the price of a typical home, rise to $1,029,700. This is a 1.01% increase from the month before, and a 10.35% increase from the same month last year.
BC’s first-time homeowner loan helped give a lift to declining sales this year, but applications have slowed dramatically. The province has now received 2,623 applications. This means the pace of applications being filed have slowed about 29% since the first quarter.
Vancouver bankruptcies are on the climb. An analysis of filings show that June 2017 saw 184 bankruptcy filings, a 17.94% increase from the same time last year. While this is a substantial jump, the total number of bankruptcies per capita remains relatively low compared to cities like Toronto.
China’s foreign exchange reserves continued to climb, as capital controls continue to throttle the amount of capital leaving the country. The People’s Bank of China (PBoC) reported reserves of US$3.091 trillion in August, a 0.35% increase from the month before. This is the highest the reserves have been since October 2016.
Using this number, we estimate “hot money” from Mainland China to have slowed down dramatically. We estimate US$46 billion in hot money left the country using our model, almost 40% lower than the same month last year.
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