Vancouver Real Estate New Loan Growth Falls 18%

It was a slightly more rosy picture for the Canadian real estate market in the month of July. Sales across the nation dipped just 1% year-over-year in July. While this could be considered encouraging news following double-digit sales declines in the early part of 2018, it was still the fewest July home sales since 2012.

Recent mortgage data from CMHC suggests mortgage credit and or the desire to borrow is slowing. Hence the sluggish and evaporating liquidity in Canada’s housing market.

In 2017, there were 959,074 new mortgage loans, a 6.5% decline across the nation. The slowdown was exacerbated in Vancouver where new loans collapsed by 18%.

Mortgage refinances, which are often used to extract equity from one’s home, declined by 8.3% in 2017. In Vancouver they plunged 18.1%, and Toronto by 8.9%. This suggests homeowners lost some desire to leverage their property.

However, this does not factor in the private lending space which has been booming in recent years.

19 thoughts on “Vancouver Real Estate New Loan Growth Falls 18%”

  1. Another nail in the coffin for the chinese investors. As reported in the Globe and Mail earlier today, China and Canada will begin exchanging tax and financial information for the first time this September. The collaboration will provide Canadian authorities a clearer picture into the activities of some foreign-property owners who evade Canadian taxes in real estate markets such as Vancouver.

    The exchange of tax information is part of a move by more than 100 jurisdictions in the world that have committed to implementing the Common Reporting Standard, a global agreement for the automatic exchange of tax and financial-account information. The agreements are aimed at combatting tax avoidance and evasion.

  2. In a business where honesty and integrity is rare, you are quickly becoming a rising star known for plain to the point truthful facts about the real estate business. Thank you for the effort.

  3. Thanks for calling out the propagandists ….. I totally agree … BCREA, CREA, CMHC, and the Federal Charter Banks are all major stakeholders in the real estate markets and have a huge amount of skin in the game …. the worst in my opinion is the government run CMHC … when the government has to constantly tell the public everything is just fine you better hold onto that thing your sitting on and get ready for worst … because it's a coming.

  4. Thanks for the info Steve! I used to see "court ordered sale" printed in listing descriptions. Are they no longer printing or am I just missing that? To me I have the impression that prices have come down more in Vancouver and as you go east to Chilliwack prices haven't moved as much like a slinky or domino effect. Do you think that impression is correct? Do you know of a public site which allows the public to see the changes to listing prices? I've seen but that doesn't allow you to lookup an arbitrary listing. only shows price changes for listings that haven't been reposted at a different price.

  5. intentional deception……….THAT'S PRETTY SLIMY. Thanks for the update Steve, what would we do without you? I know that you "pay a price" with your colleges for releasing this type of information……just know ,you are helping a lot of people

  6. Tell me about it. My friend inquired about a HELOC for one of his properties in Toronto this week. His condo is 55% paid and has appreciated by 35% but the bank would only loan out five times his yearly earnings with no bearing on the current value of his condo and remaining mortgage. They use to lend out HELOCs like pancakes a few years ago. So the loan sector has definitely tightened up to control speculation.

  7. Kudos for your journalistic courage Steve. The fact that public is not allowed access to most of the RE data you bring forward, speaks volumes as to the trustworthiness folks should place with the REBGV and similar.

  8. Looking at this from California and wanting to return to Vancouver, I have to wonder how far prices fall. If mainland Chinese can’t get money out of the country and local salaries are surprisingly low, then who is the buyer for a $1.6M 1200 sq ft condo?

  9. As always great video Steve. As you said no one really knows how market will perform in the next year or two but when the top notch PR firm is engaged, it’s getting obvious where we’re heading. I’ve seen this way many times in US just before 2008 crash … tremendous efforts were made to keep the lid down on a pressure cooker.

  10. So much noise in the marketplace now. It's all giving me a headache, too much disinformation. All speculation, nobody seems to care and look at all the signs out there against RE.

  11. Interesting new trend I'm seeing. Rather than re-listing at a lower price, common practice on an overvalued and stale listing, I'm seeing the asking price jump upon termination. Re-listings are then barley lower or even listed higher. Example: condo sits on market for 60 days at $699k. Day before terminating, asking jumps to $759k. Next day the "new" listing has an asking at $689k. Can only imagine the tactic behind this. Could it be in favour of the realtors, and the buyers realtor shows their buyer the "great deal" they're getting by showing them it dropped "70k". hummmmm, I wonder. Sadly I'm seeing this work. Keep up the good work Steve! So refreshing to see and hear your reporting of exactly what is going on in the market as the whole association is a corrupt, protected and self interested POS. Time to give the public access to paragon data so they can too see what's actually happening and what most realtors won't properly disclose.

  12. Steve, any sign that the smaller, more adaptive detached builders are getting the memo and slowing down building? Or no, still building like crazy?

  13. Thanks for the honest take on the situation – credibility seems to be in short supply these days, it's solid gold when you find some.

  14. Inflation is multi-year high, 3% and increasing. Despite rising rates, many mortgages entered into "zero or negative inflation adjusted interest" zone, free money.

  15. I enjoy watching your video each week, it is the most realistic view of the Vancouver market, thanks for putting the effort with all the financial studies as well as the background researches. Thank you so much!!!!

  16. Thanks again, Steve. Hopefully you can comment next week on : "Court order upheld requiring TREB to stop restricting its members’ use of real estate data, Aug 23". The competition bureau hopes that this will spread across Canada. The job of a real estate board is to maximize profits for its members. If they are allowed to lie, they will. Caveat emptor, eh? Capitalism is a like a nuclear reactor. It's a great way to power a society, as long as the reaction is controlled. Hopefully Gene Roddenberry was right about the future.

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