Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
US Border Stopped 1,200 Terror Suspects From Canada, Urges Tighter Immigration
Evidence that Canada’s breakneck population growth is unsustainable is starting to pile up. The latest blow comes from US border data that shows a surge of terror suspects attempting to cross from Canada. Since 2020, the US border has stopped over 1,200 suspects on the country’s “terror Watchlist” at the Northern border. The surge has lawmakers in the US—Canada’s largest trade partner—warning the country needs major reforms to its immigration screening. Otherwise, they’ll be forced to reexamine what Canadian identification means.
Canada’s Insured $1.5M First-Time Home Buyer Loans Are A Quiet Bail Out
Canadian first-time home buyers can’t find a property for under $1 million. That’s the Government of Canada’s narrative, announcing first-time buyers will see the max purchase limit for state-backed loans raised to $1.5 million. If you’re a little skeptical this is about first-time home buyers, you’re onto something. Carrying a high-ratio loan of this size requires being amongst the wealthiest households in Canada. Not exactly the first-time home buyer that most picture when they hear state-assistance is coming. More likely, this plan is about providing lenders with insurance to deal with the sudden increase in bad loans.
Canadian Real Estate Prices Slip Further On Weak Demand, Rising Inventory
Canadian real estate prices resumed its downtrend, despite falling interest rates. The price of a typical home fell 1 point in August as weak demand persisted and more sellers appeared. Most of the industry expected the market to pick up when rates were cut. Apparently only sellers got the memo, since cheaper credit hasn’t brought in more buyers. Now with labor markets eroding faster than anyone had anticipated, it’s unclear if credit stimulus will be enough.
Toronto Real Estate
Toronto Real Estate Is Collapsing Much Faster Than Most Realize
Toronto real estate prices may look boring, but the lack of movement may be a serious red flag. RBC mortgage data shows a massive uptick in delinquencies in Greater Toronto. People tend to sell before falling into arrears, slashing prices until they find a buyer. Sellers only tend to default if they can’t lower their price further—like when an over-leveraged speculator has already seen their equity wiped out. Slow sales and stagnant prices with rising delinquencies indicates a big problem is brewing.
Halifax Real Estate
Nova Scotia Gov Kills Remote Work To Revive Halifax Real Estate Demand
The Government of Nova Scotia is killing remote work to return demand to Halifax real estate. The Province has ordered 3,500 non-union employees to work out of the office full-time starting on October 15, 2024, reversing a program rolled out in 2015. The move is the latest in a series of government agencies trying to anchor employees to major cities and reverse outflows. Nova Scotia real estate has already responded to the shift, with demand for existing homes returning to the City at the expense of weakening demand in the burbs.
English (US) · 