This Week’s Top Stories: Canadians Are Finding Every Possible Way To Draw Equity From Real Estate, Toronto’s New Inventory Soars

This Week’s Top Stories - Canadians Are Finding Every Possible Way To Draw Equity From Real Estate, Toronto’s New Inventory Soars

Time for your weekly update on the most important real estate news.

Canada

Canadians Are Borrowing Against Real Estate At The Fastest Pace Ever

Canadians received a windfall in paper wealth over the past couple of years as real estate values soared, now they’re looking to utilize it. Bank filings from OFSI show that $313.66 billion in loans are secured against residential real estate, an 11.16% increase from last year. This is the largest annual increase ever.

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Chinese Warn The Dangers Of Buying Canadian Real Estate… Like Raccoons And Bears

A Hong Kong based condo marketing firm shares some reasons you should buy a condo instead of a house in Canada. Yes, there are some reasons people might prefer a condo over a house, but almost none of these reasons typically come to mind. Raccoons stealing your food, and bears wandering onto your property aren’t things we typically worry about in Vancouver and Toronto.

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Reverse Mortgages Are Exploding In Growth Across Canada

HELOCs are nice, but you need to make those darn payments – which is hard to do when you’re retired. More and more Canadian seniors are opting for reverse mortgages instead, and that’s led to explosive growth in the industry. OFSI filings show banks held $2.037 billion in reverse mortgage debt in June, a 20.59% increase from the same time last year. This number is more than double what it was in just 2012, and is set to grow even faster with Canada’s house wealthy, savings poor, population that’s rapidly aging.

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Bankruptcies Across Canada Drop, But More People Are Making Deals With Creditors

Less Canadians are filing for bankruptcy, but more are attempting to make deals with creditors. In June, bankruptcies showed a 5.8% drop from the same time last year. This is a huge improvement, but not as great at the surface numbers appeared. Consumer proposals shot up 2.6%, showing more Canadians are attempting to negotiate what they’ll pay back creditors.

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Toronto

Toronto Real Estate Is Seeing A Massive Flood Of Inventory

Numbers from the Canadian Real Estate Association (CREA) show the explosive growth in new listings across Toronto. Toronto saw 115,475 new listings January – June 2017, a 16.3% increase from the same time last year. This coupled with a decline in sales has led to the largest decline in sales to new listings across the country.

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Vancouver

Vancouver Real Estate Sees The Largest Drop Of New Listings In Canada

New listings across Vancouver are declining faster than any other city across Canada according to CREA. The city saw 35,395 new listings from January 2017 to June 2017, a 14% decline compared to the same time last year. Sales are dropping faster than new listings however, with the sales to new listings ratio showing the 5th largest decline of urban centers in Canada.

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