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Canada Real Estate Market

It's quiet good profitable


The Canadian housing market has been slowed down considerably over the past year a fact that the industry attributes to a difficult stress test for mortgages and rising interest rates.

This has an impact on the general economy. Canada's GDP slowed down at an annualized 0.4% over the period of 7.5% over the period.

Real estate markets from New York to China are slowing as well as growing up.

There, the real estate market is in correction mode, with prices in Sydney and Melbourne falling at their fastest pace in decades. Experts have recently warned that the country may be experiencing its worst housing retreat in 130 years.

So far, at least, there is no such hard prognosis for Canadian real estate markets. But we are breaking records for decades now, suggesting more than a short readjustment to new mortgage policies.

Here are four beaten records that suggest we have reached a real turning point in Canadian real estate.

1 For the first time, there are fewer mortgages in Canada than last year


The Canadian Bankers Association reported 4,756 million mortgages on the books of the 10 largest banks in Canada at the end of October 2018. A 0.3% decrease from the same period a year earlier.

According to data analyst Stephen Punwasi of Better Dwelling, this is the first time that the number of mortgages declined over one year.

Essentially old mortgages leave the books of Canadian lenders faster than new borrowers arrive. It's even more remarkable when you take into account that these old mortgages were issued decades ago when the population of Canada was smaller.

2 The Vancouver real estate market has not been as calm since 1985


The greater Vancouver area recorded 1,484 home sales in February this year, a decline of almost 33% from February 2018 and the lowest score for a month of February since 1985 according to the prominent real estate agent and blogger local Steve Saretsky. Only 98 single family homes have changed hands.

This is even more remarkable when one considers that the population of the region in 1985 was about three fifths of what it is today. On a per capita basis this may well be the weakest real estate market in the city since the Great Depression.

As the least affordable market in the country, Vancouver has always been more exposed to mortgage stress testing and interest rate hikes. Double that with a provincial tax on foreign buyers and a new municipal tax on vacant homes and you have the recipe for a slowdown.

3 Canadian household debits grows at its slowest pace in 36 years


The amount of debit held by Canadians has been growing for decades and both in absolute terms and in terms of income, which it holds up well in both good and bad times.

4 Real estate constructions is the weakest in three years, while population growth is booming 

Construction of homes in Canada plunged 13.6% in February according to the Canada Mortgage and Housing Corporation falling at an annual rate of around 173,000 buildings. This is the lowest number of housing units in more than three years.

Promoters are obviously frightened by the slowdowns in some of the largest Canadian markets which have abandoned new projects.
But this withdrawal comes at a time when demand for new homes is accelerating. Facing a labor shortage caused by Canada's aging population federal Liberals have raised immigration levels above 300,000 a year in recent years.


Between policies that encourage faster population growth and policies to limit rising house prices, everyone has to guess what will happen.




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