Debt load shrinking, Ontario home prices to rise

Canadians' debt load is shrinking and the Canadian Mortgage and Housing Corporation says Ontario home prices are expected to rise again. Brett House of Scotiabank Economics says we may be heading into better economic times.

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[bobbybobby]

Canada is the second largest country in the world with only about 36 million people but the average house is close to a million dollar. Something is wrong with this picture.

[bahaalsharif]

Toronto had the worst April sales since 2003 (even worse than the April of 2009 after the great recession), we had the worst quarter sales since 2009, we had the worst mortgages growth since 2001, National home sales sank 14% to lowest level in 5 years.. Vancouver had the worst April sales in 17 years.. ...Luxury homes sales in Toronto down around 68%, New-home sales in GTA hit 20-year low in April (lowest on record)
In May 2018 Sales dropped 22 per cent to 7, 834, compared with the same month last year, according to data Monday from the Toronto Real Estate Board. Seasonally adjusted, transactions fell for the fifth-straight month to the lowest level since 2009. Just reminder that May 2017 had slump in sales and prices after the government intervention on April ...But we managed to have even LOWER sales and 22% lower than that month which is pretty bad the active listings is 13% higher than last year

UBS put Toronto as number one bubble city in the world, CIBC and RBC expects their mortgage growth to be cut in Half this year, more rate hikes on the way because bonds are rising here and US...

If you looked how much housing appreciated in the last 3 years, it was inflated in the past 3 years for 3 reasons, if you remember in 2014 oil prices crashed to 23$ (from 100$+) which caused the loonie to drop from over 1$ US to 67 cents US...Also bank of Canada dropped the rates twice because we almost went into recession as a result. so what did this do? The loonie gave foreign buyers/investors/immigrants A 33%!!! discount in just 3 month period (dropped from 1$ US) Also BOC rate cut gave the local buyers discount on mortgages ...And to add to the perfect storm to push GTA prices higher, vancouver implemented the 15% on foreign buyers which pushed investment to Toronto ...That was a perfect storm to push housing market higher in GTA...Guess what is happening now, the foreign buyers tax added to GTA region, loonie on the rise and rates on the rise, so all these reasons are reversing...+ stress test added, affordability level sinked... So writing on the walls that house prices that was inflated for the reasons above should go back to the pre-perfect storm level, below some latest stats/news/videos showing the cracks in the Real Estate market

Mortgage growth in Canada hasn't been this weak since 2001


National home sales sink 14% to lowest level in 5 years: CREA

New-home sales in GTA hit 20-year low in April

In May Housing sales in Greater Toronto Area down 22.2 per cent from last year

Canada faces 'significant risks' from housing, trade tensions, says IMF
Meanwhile, a key domestic risk to the economy is a "sharp correction" to the housing market that could be triggered by faster-than-expected rise in mortgage interest rates, the agency said.

New Sale Decline in Latest TREB Monthly Report

Metro Vancouver's detached home prices could fall further, real estate board says

7 charts that show how regulatory changes have dealt a serious blow to the Canadian housing market

Rosenberg: Poloz has little power to control Canada’s ‘debt bubble’ “The Bank of Canada is just the little boy with a finger in the dike basically, ” he said. “Interest rates are gravitating higher in Canada because it’s happening in the United States. There is nothing the Bank of Canada can do about that.”

'Get ready for a July rate hike': BoC drops cautious tone, holds rates

Toronto housing sales slump in weakest start since 2009 recession

Toronto real estate market sees slowest April sales performance since 2003

Vancouver Housing Market Just Had Its Cruellest April In 17 Years

Luxury home sales plummet in Toronto, Vancouver

'Unprecedented' reliance on housing fuels Canada recession call
This recession call is coming from inside the house.

CIBC expects new mortgages to halve in second half as rules bite

How speculators inflated the Toronto housing bubble

A look at some of the Toronto area homes that suffered huge price declines in 2017

The UBS Global Real Estate Bubble Index is designed to track the risk of housing bubbles in global financial centers. Toronto tops our list in 2017.

"We Know It's Going To Be Painful": Half Of Existing Canadian Mortgages Are Up For Renewal In 2018

To illustrate how much that mortgage burden will increase, a $500, 000 mortgage at 2.5 per cent, with monthly payments of $2, 300 would take 24 years to pay off. The total interest cost would be $166, 540.
The same $500, 000 mortgage at 5.5 per cent, with monthly payments of $2, 300 would take 102 years to pay off with total interest payments of $2, 327, 000.

Court Hears Of Unexplained Millions From China And Toronto Real Estate

How Chinese gangs are laundering drug money through Vancouver real estate

While still low by historical standards, at almost six per cent, MacBeth says rates are now approaching the level where the interest costs double the price of the home over 25 years."With a $100, 000 down payment and an assist from the bank of mom and dad, " he said, "you buy a $600, 000 house with a $500, 000 mortgage."
At 6.5 per cent interest, that $500, 000 mortgage ends up costing more than $500, 000 in interest over 25 years, he says, bringing the actual price tag of the home to almost $1.1 million.
"It's funny how people focus on the rate, because it's not the rate that matters, it's that we're paying almost triple what we did 15 years ago for our houses, " MacBeth said.

Look at the "Change in residential home sales" graph,

[anzyxx]

Your kids are financially enslaved. Good job Canadians!

[kholkeholkepolke]

Asset growth has compensated for some of that debt growth? Roflmfao!!! It's debt that jacks up asset prices. What a ponzi..

[emanuelebignone]

I stop watched it when he said “salaries are increasing” 😂
Does he live in the willie wonka world?

[abbynormalbrain]

maybe this pair of experts, should be talking about our governments spend thrift ways? Canada's future has been sold out for years

[dunggg]

Most people probably use their house as an ATM to ‘pay off debt’

[rometimed]

"Wages are increasing at the highest rate we have seen in years."
From my West Coast vantage point, out this way housing needs to half in price or wages need to double in price in about the next 3 years, or some combination of those 2 things or most of a generation will simply move. Completely and utterly unaffordable for a household to be spending 75%+ of income on housing.

[simonc]

Incomes going up hahaha! The problem is rich foreign chinese investors are buying our homes driving hard working canadians out on the streets. Wake up ppl! We need a foreign tax so high it's no longer an investment for them. US is doing it...

[davidfrison]

OMG the difference is between Canadian news and American news it's creepy how polite and politically the we are up here in Canada .. very passive lmao

[mathewvanostin]

Well toronto/ontario & vancouver/british colombia are among the top 10 most popular north amerikan spots

Ask any russian. Japaneese. Any foreigner what canadian cities you know. And they always say vancouver/british colombia & toronto/ontario

So for the people bitching MOVE TO A LESS POPULAR PLACE. Are examples of big cities where rent is very affordable

Montreal city average price rent for a medium class appartement = 700$

Toronto city average price rent 2000$

Living in popular place is a privilege. Not a right. You have to do what it takes to win it. If you do really want to live in international popular places

[Sam]

Dismantle Supply Management on Dairy, Poultry and Eggs. Introduce a National Pharmacare Program. Those two moves would greatly increase disposable income of all Canadians particularly the poor thus reducing their debt burdens. In the Current systems Canadians are paying some of the highest prices for dairy and drugs on the planet.

[karim.mmmmmmm]

people woking on tv .... their job is to appear on the screen shouldnt they be ... less annoying than that ?! an extremly irritating couple


efff change channel