Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canadian “Systemic Risk” Due To CLP Mortgages Is Bigger Than You Think
OSFI, the country’s bank regulator, has mentioned combined loan plans (CLPs) are a systemic risk. Mainstream discussion of the issue was largely void though, as it was unclear how big of a problem it had become. Our analysis shows outstanding CLP balances surged 50% between 2019 to Q3 2023. As a share of residential real estate lending, CLP debt has increased 5.6 points to 42.5% of the total outstanding debt. Nearly 1 in 3 dollars of CLP debt is also to households with high utilization, which tend to be incapable of handling shock. Another low rate shock may drive this share to over half of lending.
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Canadian Real Estate Sellers Rush For The Exit, Softest Month Since 2008
Canadian real estate sales continue to soften while inventory rises further. The combination drove prices 1.7% lower last month, with November’s demand balance the worst since 2008. Only half the impact of higher rates is believed to have tricked to market, but it’s already having a significant impact on repricing housing.
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Fire Sale: Toronto Mansion Listed For Sale At $14M Torched By Arsonists
Last week, Toronto Fire Services were called to the site of a recently completed $13 million mansion. Toronto police are now looking for 4 suspects caught on camera setting fire to the home. The arson is the latest in a trend of new homes being set on fire. Greater Toronto has seen the problem become so bad, a major insurer has put out a warning to homebuilders, with premiums expected to rise.
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Canadian Housing Affordability 2nd Worst In History, Recession To Follow: BMO
Canadian real estate is now
The post This Week’s Top Stories: Canadian Real Estate Owners Rush To Exit After A Risky Mortgage Boom first appeared on Insie Mesenza.