Building permits see a surprise surge… Canadians stuck in starter homes… Housing market confidence continues to fall… More Canadians living from paycheck to paycheck…
Building permits see a surprise surge
It wasn’t expected but July saw building permits rise to a record level with the Toronto and Vancouver condo markets leading the way. Figures from Statistics Canada show that permits were issued worth $9.2 billion dollars, up 11.8 per cent from June and the fourth consecutive monthly rise. The value of residential building permits increased for the fifth consecutive month, up 18.0 per cent to $5 billion with gains in seven provinces, led by Ontario and British Columbia, with Alberta a distant third. The largest decline occurred in Nova Scotia. The surge in the value of permits for multi-family dwellings was 43 per cent; a sharp contrast to June’s 4.5 per cent decline, while the volume increased 21.4 per cent to 20,511 nationally. In the non-residential sector, the value of permits rose 5.2 per cent to a record high $4.2 billion. This represented a fourth consecutive monthly increase.
Canadians stuck in starter homes
The disparity in prices of mid value homes and those at the lower end is making it increasingly hard for Canadians to move up the property ladder. A report from CIBC World Markets shows that prices of mid-price and high-value homes have grown faster than the value of starter homes, making upsizing impossible for many. The report says that the situation is starting to paralyze the market which of course relies on buyers trading-up at all levels of the market. The price differential is not the only factor though, as tighter mortgage regulations are also making it harder for buyers to move up from their starter homes. Read the full story.
Housing market confidence continues to fall
The latest Bloomberg Nanos Confidence Index shows that we’re becoming more cautious about growth in the housing market. The index overall saw a small increase in consumer confidence but the real estate sub-index has hit a 5 month low. With some of the data we have seen recently suggested a slowdown in some parts of the market, the number of people who believe there will be an increase in property values in the next 6 months is down to 38.6 per cent. Read the full story.
More Canadians living from paycheck to paycheck
A report from BMO shows that 30 per cent of Canadians are struggling with their month-to-month finances; living paycheck to paycheck or spending more than they earn. The survey also points to an increase in the number with little in the way of emergency funds; 27 per cent have savings that would last only a month or less. While there has been a slight increase in the average level of savings to $35,237, around 40 per cent have less than $5,000. With the number of those who qualify for unemployment benefits having fallen, it means that there is a greater risk of people ending up in desperate financial situations. Read the full story.
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