Time for your weekly cheat sheet about the most important stories of this week.
Canadian Real Estate
Canadians are facing higher payments for mortgages and HELOCs, especially in Vancouver and Toronto. The average monthly mortgage payment in Vancouver reached $ 1,794 in Q1 2018, an increase of 6.5% over the previous quarter. Toronto's average payment reached $ 1,662, an increase of 6.4% from the previous quarter. To contrast with Montreal, the average mortgage payment saw $ 1,060, an increase of 2.51% over the previous quarter. The growth of Montreal is huge, but Toronto and Vancouver are of the next level.
The payments for home loan lines (HELOC) are growing even faster. The average monthly HELOC payment from Vancouver reached $ 594 in Q1 2018, up 10.82% from the previous quarter. Toronto's average monthly payment reached $ 518, up 12.85% from the previous quarter. Montreal & # 39; s average payment reached $ 582, a slightly more conservative 5.82%. For a consumer credit covered by equity, the pace of growth is important here.
Mortgage crimes are a misunderstanding of market indicators. People do not do a delinquent on their mortgage when they have no money left. They go delinquent when they have no money left and can not sell their house fast enough. That is why delinquencies are a better sign of market liquidity than the health of the consumer. That makes it more important to note when these numbers cease, instead of when they climb. Turning is probably a sign of peak liquidity, with a turnaround around the corner.
In Toronto and Vancouver, overdue receivables are blocked for mortgages of more than $ 400,000. The overdue payments from Toronto for mortgages above $ 400,000 now amount to 0.08%, just outside the lowest point ever. It has been in the range of 0.07% and 0.08% over the last six quarters – the longest being the last time & # 39; flat & # 39 ;. The mortgages in Vancouver in this range have been 0.09% since Q2 2017. The alignment of overdue receivables probably means that we have achieved maximum liquidity. In the absence of a stimulus for buying houses, these numbers can only rise from here.
The measure of the most liquid form of cash points to an economic slowdown in Canada. The BoC measured the annual growth of M1 + by 4.2% in June, against 4% the previous month. The growth rate of 4% was actually the slowest pace since 2003. In 2003, that required huge interest rate cuts to stimulate the economy. The upturn in June is encouraging, but the annual quarterly quarterly rate to 2.3% raises water. The 3-month rate probably means that the annual interest rate will slow down in the short term.
Toronto Real Estate
The typical detached house across the street from Toronto sees prices still drop in July . The exempted benchmark for TREB reached $ 923,800, a decrease of 4.15% compared to last year. In the city of Toronto, the benchmark fell to $ 1,112,800, a decrease of 2.91% over last year. The average price is now almost 10% lower than that of peak. That level of decline pushes these house prices into a technical correction.
Vancouver Real Estate
Sale of real estate in Vancouver hit 18 years low, prices show the slowest growth since 2015  Greater real estate in Vancouver sees price growth slow, because the turnover has dropped for almost two decades. The benchmark price of a compound house reached $ 1,087,500 in July, an increase of 6.7% compared to last year. The increase is still huge, but is the slowest growth rate since February 2015. The slowing growth is probably due to falling demand. The market saw only 2,070 sales in July, making it the slowest July since 2000.
The free-standing market of Greater Vancouver alone saw loose prices become negative. The price of a typical detached person within REBGV dropped to $ 1,588,400, almost $ 10,000 lower than a month earlier. This means an annual drop of 1.5%, the first time negative pressure since October 2013. We know that an aluminum foil cap has "crushed" the Vancouver market for years. Some neighborhoods may have seen lower free-standing prices, but this across the board.
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