{"id":41755,"date":"2018-12-18T06:41:20","date_gmt":"2018-12-18T11:41:20","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41755"},"modified":"2018-12-18T06:41:20","modified_gmt":"2018-12-18T11:41:20","slug":"toronto-home-prices-just-plunged-at-a-rate-not-seen-since-1996","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41755","title":{"rendered":"Toronto Home Prices Just Plunged At A Rate Not Seen Since 1996"},"content":{"rendered":"
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Toronto Home Prices Just Plunged At A Rate Not Seen Since 1996<\/a><\/span><\/h3>\n<\/div>\n
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A seismic\u00a0shift is currently underway in\u00a0the Toronto real estate market<\/strong> which may have finally pricked Canada\u2019s biggest bubble.\u00a0In October,\u00a0home prices plunged at the fastest pace in more than two decades,\u00a0according to new data published by Statistics Canada.<\/p>\n

Statistics Canada\u2019s Price Index for new Toronto homes declined 1.4% in October from a year earlier, the most since September 1996. Across all provinces and territories, home prices\u00a0increased 0.1%, the slowest pace since 2010, which signals the country’s real estate market has stalled and could reverse into 2020.<\/p>\n

The pace of new home construction crashed by a\u00a0massive 40.3%\u00a0in the Greater Toronto Area between October 2017 and October\u00a02018.<\/p>\n

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Bloomberg<\/a> describes the turning point in the real estate market as a result of\u00a0government measures, introduced in 2017 to\u00a0help cool the city’s red-hot housing market,\u00a0such as tighter\u00a0mortgage lending laws.<\/p>\n

“The Bank of Canada also raised its trend-setting interest rate five times between July 2017 and October of this year,”<\/strong> notes Bloomberg.<\/p>\n

“New home prices were advancing at an annual pace of almost 4% late last year before the mortgage rules took effect.”<\/p><\/blockquote>\n

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Further, the current economic\u00a0backdrop suggests storm clouds are gathering across the country. Last week, the Canadian 2 and five year bond yields inverted, for the first time since 2007.<\/p>\n

“This is often taken as a signal that investors are more optimistic about short-term prospects versus the long term, suggesting a lack of confidence in continued economic growth. This can also impact bank profitability, as banks pay short-term rates on deposits and take in long-term rates on loans. A flat or inverted yield curve, therefore, could lead to negative net interest margins,” said\u00a0Steve Saretsky of VancityCondoGuide.<\/a><\/p><\/blockquote>\n

As\u00a0Saretsky shows, this can cause bank lending to further tighten, leaving borrowers high and dry when market liquidity is most needed.<\/p>\n

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\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Toronto Home Prices Just Plunged At A Rate Not Seen Since 1996 A seismic\u00a0shift is currently underway in\u00a0the Toronto real estate market which may have finally pricked Canada\u2019s biggest bubble.\u00a0In October,\u00a0home prices plunged at the fastest pace in more than two decades,\u00a0according to new data published by Statistics Canada. Statistics Canada\u2019s Price Index for new […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,5862,1583,2340,803,4318],"class_list":["post-41755","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-home-prices","tag-housing","tag-housing-market","tag-toronto","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41755"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41755\/revisions"}],"predecessor-version":[{"id":41756,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41755\/revisions\/41756"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}