Technology: Canadian housing slump deepens with first drop in values in decades - PressFrom - Canada
  •   
  •   
  •   

TechnologyCanadian housing slump deepens with first drop in values in decades

20:55  14 march  2019
20:55  14 march  2019 Source:   msn.com

Canadian House Prices To Drop As 'Huge' Wave Of New Homes Arrives: Report

Canadian House Prices To Drop As 'Huge' Wave Of New Homes Arrives: Report The slowdown in Canada's housing market will get worse before it gets any better, a new analysis predicts, because the country is about to be flooded with a "huge amount" of new homes. 

(Bloomberg) -- Canadian home values fell last year for the first time in three decades amid falling prices in some of the country’s priciest markets, even as debt burdens increased.

The value of residential real estate in Canada held by households dropped C$30 billion ($22.5 billion) in the fourth quarter to C$5.10 trillion, from C$5.13 trillion in the same quarter the previous year, Statistics Canada reported Thursday. The 0.6 percent decline is the first decrease in country-wide home values in data going back to 1990.

Canadian housing slump deepens with first drop in values in decades© Bloomberg Household debt as a percent of income hits new record

Households meanwhile saw their debt burdens rise at the end of last year, with the debt to disposable income ratio hitting a record 174 percent in the fourth quarter. The worsening reflects a sharp slowdown in economic growth at the end of last year.

Singh unveils affordable housing proposals

Singh unveils affordable housing proposals OTTAWA - Jagmeet Singh is proposing three measures he says will help build 500,000 new affordable housing units across Canada over the next 10 years. The NDP leader says the federal government should stop applying GST to the cost of building new affordable units. It should also provide a subsidy to renters who spend more than 30 per cent of their income on housing. And Singh says it should double the first-time home buyers' tax credit to $1,500 from $750. For now, details of the three measures are scant. Singh says they're part of a broader NDP housing plan which will be released later. Singh is running in a Feb.

Canadians are also spending a larger proportion of their income on servicing that debt. The debt service ratio -- the proportion of a household’s income that goes to paying off principal and interest on debt -- rose to 14.9 percent in the quarter, the highest level since the fourth quarter of 2007.

Debt-to-disposable income should plateau moving forward, Priscilla Thiagamoorthy, an economic analyst at BMO Capital Markets, said by phone.

“Credit growth is slowing so as a result of that, we should expect to see maybe steady or lower debt ratios going forward, especially because of a cooler housing market and a slowdown in consumer spending,” Thiagamoorthy said.

In a separate report, the agency said new home prices fell 0.1 percent in January from a year earlier -- the first decline since 2009. While the index doesn’t include condominiums, the weakness was driven by declines in the Toronto and Vancouver regions, which fell 1.5 percent and 0.3 percent respectively.

Winnipeg’s housing affordability a ‘huge potential advantage’ in long run, says firm

Winnipeg’s housing affordability a ‘huge potential advantage’ in long run, says firm In terms of housing affordability, Winnipeg is in the middle of the pack of North American cities, according to recent statistics from a demographic research firm. Demographia's international housing affordability survey – its 15th annual, in collaboration with the Winnipeg-based Frontier Centre – says the Manitoba capital is sitting pretty compared to other Canadian cities. Consultant Wendell Cox told 680 CJOB Wednesday that housing affordability, for the purposes of the study, is measured by the 'median multiple' – calculated by the median house price divided by the median household income.

Canadian housing slump deepens with first drop in values in decades© Bloomberg New house prices see first yearly decline since 2009

(Updates with quotes. An earlier version corrected the percent decline in the 2nd paragraph.)

--With assistance from Natalie Wong.

To contact the reporter on this story: Erik Hertzberg in Ottawa at [email protected]

To contact the editors responsible for this story: Theophilos Argitis at [email protected], Stephen Wicary

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

U.S. home sales slump ahead of spring selling season.
U.S. home sales slump ahead of spring selling season

—   Share news in the SOC. Networks

Topical videos:

usr: 1
This is interesting!