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.