No Comments

This Week’s Top Stories: Over 720,000 Canadians Are On Mortgage Payment Relief, and New Forecasts See Prices Making Double Digit Drop

Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Prices To Make Double Digit Drop, Another Risk Agency Tells Institutional Investors DBRS, the credit rating subsidiary of Morningstar, sees rising defaults coming to Canada. The firm warned institutions and investors that mortgage arrears rates could triple, in […]

The post This Week’s Top Stories: Over 720,000 Canadians Are On Mortgage Payment Relief, and New Forecasts See Prices Making Double Digit Drop appeared first on Better Dwelling.

No Comments

Canadian Real Estate Prices To Make Double Digit Drop, Another Risk Agency Tells Institutional Investors

Another global risk agency is warning wealthy investors that Canadian real estate prices will drop. DBRS, the ratings division of Morningstar, released its forecast for mortgage and price performance in Canada. The firm warns investors to expect climbing arrears, and double digit real estate price drops across Canada. Forecasting Scenarios Institutional research provides a range […]

The post Canadian Real Estate Prices To Make Double Digit Drop, Another Risk Agency Tells Institutional Investors appeared first on Better Dwelling.

No Comments

Canadian Households Are Deferring Almost $1 Billion In Debt Payments Per Month

Canadian households are asking banks if they can skip a few payments, and banks are (mostly) saying yes. Canadian Bankers Association (CBA) data shows hundreds of thousands of payments are being deferred. The number, as big as it is, represents select member banks – meaning there’s many more deferrals. Even just using this data, it […]

The post Canadian Households Are Deferring Almost $1 Billion In Debt Payments Per Month appeared first on Better Dwelling.

No Comments

Toronto and Vancouver Mortgage Delinquencies Rise To Multi-Year High

Canadian mortgage delinquency rates are falling, except in the country’s most expensive markets. Canada Mortgage and Housing Corporation (CMHC) crunched data from Equifax, and found mortgage delinquencies dropped in Q4 2019. Two notable exceptions to the trend were Toronto and Vancouver – where delinquencies increased to multi-year highs, before the pandemic. Mortgage Delinquencies People think […]

The post Toronto and Vancouver Mortgage Delinquencies Rise To Multi-Year High appeared first on Better Dwelling.

No Comments

The Median Sale Price of Vancouver Real Estate Takes A Dive

Greater Vancouver real estate is feeling pressure from the pandemic, but how much is up for debate. Real Estate Board of Greater Vancouver (REBGV) sales are down to multi-decade lows for April. That much is clear. Price indicators are all over the place though, with the slow moving benchmark showing the highest price growth in […]

The post The Median Sale Price of Vancouver Real Estate Takes A Dive appeared first on Better Dwelling.

No Comments

Toronto Real Estate Sales See Worst April In At Least 25 Years

Greater Toronto real estate is feeling the wrath of pandemic, but it’s not exactly clear how much. Toronto Regional Real Estate Board (TRREB) data shows sales made a big decline in April. That much is obvious. Prices are where it gets a little more muddy, with the benchmark price making a big climb from the […]

The post Toronto Real Estate Sales See Worst April In At Least 25 Years appeared first on Better Dwelling.

No Comments

Canada’s Mortgage Credit Growth Hits Multi-Year High, But It Isn’t What It Seems

Canadian mortgage credit growth is accelerating into the pandemic – despite the lock down. Bank of Canada (BoC) data shows outstanding mortgage credit reached a new high in March. The number also saw one of the highest rates of growth for the segment in years. Despite the optimistic sounding trend, one needs to remember hundreds […]

The post Canada’s Mortgage Credit Growth Hits Multi-Year High, But It Isn’t What It Seems appeared first on Better Dwelling.

No Comments

This Week’s Top Stories: Canadian Real Estate Prices Forecasted To Make Big Drop, and 1 in 5 Canadian Businesses Laid Off More Than 80% of Staff

Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Prices Could Drop Up To 30%, Moody’s Advises Institutions Deep pocketed investors and institutions were advised Canadian real estate prices will fall. Moody’s, one of the world’s largest risk organizations, published their economic forecast. In the baseline forecast, […]

The post This Week’s Top Stories: Canadian Real Estate Prices Forecasted To Make Big Drop, and 1 in 5 Canadian Businesses Laid Off More Than 80% of Staff appeared first on Better Dwelling.

No Comments

Pre-Existing Disease – COVID Economic Stress Uncovers Longstanding Vulnerability in Vancouver RE Market

Urban planner Andy Yan, director of the City Program at SFU, thinks the pandemic has exposed Vancouver’s economic fragility. Besides real estate, Yan explains, the economy is driven by service industries such as tourism, which has been clobbered by COVID-19. Not only do tourists help fuel short-term rentals like Airbnb, but many long-term renters work in tourism and hospitality. “If you were either counting on Airbnb or on a renter living in your secondary suite helping pay for your mortgage, and now they can’t, what do you do?” Yan asks.

Add in the fact that international travel is now very difficult, and things could get much uglier. “You have the local economy not doing well, and now you’re cut off from the global economy,” Yan says. “So it feels like it’s 1978,” when Metro Vancouver resembled what he calls Detroit by the Pacific. His summary of that era: “It wasn’t good.”

When it comes to retail and office real estate, the future looks uncertain, too, Yan reckons. It’s easy to blame Amazon, but storefront retail was already struggling before the crisis, he says. “You know how COVID takes out people with pre-existing health conditions? Well, we have pre-existing economic conditions.”

As for the office property market, Yan says that before people started staying home, 20 to 30 percent of Metro Vancouver’s labour force already worked there. “If you accelerate that and it goes into now 40 or 45, maybe even 50, how much are they going to stay at home?”

Bryan Yu, deputy chief economist with Central 1 Credit Union, also sees uncertainty ahead. “Commercial is probably a little bit problematic, especially the retail side, and even for some of the commercial product as work from home becomes much more normalized,” he says. “Will companies go back to requiring that large footprint they have now, or are they moving to a more nimble, work-from-home type of environment?”

Either way, creating a new local economy won’t be easy. Given what the pandemic has revealed about the risks of relying on global supply chains, one possible scenario is that manufacturing returns to the region. But as Yan points out, the City of Vancouver converted much of its industrial land to residential in the 1980s and ’90s. “Now where does that industrial perhaps go?” he asks. “It either goes to, say, Surrey or Abbotsford, or it goes to Calgary or Winnipeg.”

For the province as a whole, the fact that tourism, retail and other service industries dominate spells trouble in a deglobalized world, Yan warns. In food service alone, more than 120,000 B.C. workers have lost their jobs, at least temporarily, Restaurants Canada estimates. “There are these green shoots in technology or highly specialized manufacturing, but they can’t generate a mass of employment,” Yan says.

– excerpt from ‘For B.C. real estate, will COVID-19 bring down the house?’ Nick Rockel, BCBusiness, Apr 23, 2020

Apt metaphors include Biblical ‘feet of clay’ and Buffett’s “when the tide goes out you discover who has been swimming naked”.
– vreaa

No Comments

Canadian Real Estate Prices Could Drop Up To 30%, Moody’s Advises Institutions

One of the world’s largest risk advisory firms says Canadian real estate won’t be spared. Moody’s Analytics released their Canadian Q2 forecast, showing how COVID-19 will impact the Canadian economy. The firm advised their institutional clients that real estate will be impacted, with even an optimistic scenario showing price declines. Risk Assumptions and Baselines First, […]

The post Canadian Real Estate Prices Could Drop Up To 30%, Moody’s Advises Institutions appeared first on Better Dwelling.

WP Twitter Auto Publish Powered By : XYZScripts.com