Mortgage Loan

Canadian Real Estate Prices Register negative price growth in Q1 2018





Canadian real estate prices registered a 6% decline in Q1 2018. This was the first time price growth has turned negative in the first quarter since 2009.

BC Real Estate prices still ticked upwards in Q1, growing 8.49% from Q1 2017. This is basically the floor of prices moving higher. Condos continue to increase as buyers have been pushed down the housing ladder, partly due to the mortgage stress test. However, sales continue to trend downwards, suggesting we will see slower growth moving forward.

Meanwhile, personal loan growth secured against residential real estate ticked upwards in February at it’s fastest pace on record.

source

10 comments

  1. Steve, love the channel! Its great to see someone who works within the market provide good, well thought out and unbiased commentary. My one issue with this weeks vid. Your comment about gov policies, do you not think its as much irresponsible lending along with borrowing that will get people into this mess. One thing that always struck me with the last few year, I was always taught to never extend your mortgage loan to 3-5 times your annual salary…at the max. And you hear stories about 10-15 times being lent, AND borrowed. If people over extend themselves, are they not bringing it on their selves? Keep up the great work! Peter, North Vancouver.

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  2. Steve Stop being so pessimistic
    Working, saving and under consuming is so old fashion
    The only way to prosperity is through consumption, instant gratification and debt.
    You can ask anyone in academia, banks and government

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  3. The shine definitely seems to be coming off real estate as an asset class. Anecdotally I've been hearing significantly more pessimistic language from random people about buying real estate than ever before. As you mentioned there's a pool of buyers at the bottom of the market that are extremely enthusiastic about buying condos at any price, but the consensus seems to be changing regarding housing as a "safe" investment. What that means for prices remains to be seen, but it doesn't look good for anyone banking on strong YoY capital appreciation of their real estate holdings anywhere in Canada.

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  4. Never was a truer word said… "You cannot borrow your way to prosperity!" Thanks for this as always.

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  5. You are on the bearish side, but still seeing investing in real state a good investment.
    Could you elaborate it? Compare with?

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  6. People can’t see renting as an option. They think they are not doing it right. People will max themselves out to buy a house with no wiggle room. The economy is too dependent on housing. Renters with jobs are going to come out on top. House owners will be liquidated. Highest personal debt ever. Canada will be a great place to leave when this crashes. Hiking rates. Impossible. The globalist agenda is to get as many people in the game and wipe them out all at once. When is my question is the common people going to start in droves sell houses?

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  7. Each dollar invested in condo flipping is a dollar not invested in technology and real value creation, I am afraid Canada is turning into condo flipping economy…

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  8. Folks )))…you have to be ready for Gas price $30 per Gallon and limited water supply. Sell housing market as fast as you can before July 2018. Stock, Bond and Global Housing markets will Crash over weekend 88.6%…Don't Cru too much….You were Warned!

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  9. Hey Steve, how's the presale condo market currently? I'm kind of interested in Solo District, but concerned that I might be buying at the peak.

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  10. March was actually negative YOY for auto sales, credit card & line of credit chargeoffs are going up. The bottom end of the loan market is unraveling, it will work its way up the food chain

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