This Week in Real Estate: August 5th – 11th

This week in real estate: Canadian builders have a reason to celebrate, why our housing market is still going strong, and why the slowdown is good for the economy overall.

Canadian builders on pace for best year since recession.

Canadian home construction is on pace for its best year since the 2008-2009 recession, with builders showing no sign of being slowed by rising interest rates or fears of a housing correction. Work began on an annualized 222,324 homes in July, the third-fastest monthly pace since 2012, the Canadian Mortgage and Housing Corp. reported Wednesday. Via Globe and Mail. Click for the full article.

Why Canada’s new-housing market is still strong despite plunging resales.

Canada’s resale market is undergoing a cooling period amid a slowdown in the Greater Toronto Area, but the nation’s new-construction segment is still going strong — and it has a lot to do with pricing, suggests Scotiabank.

“What helps to explain why the new build segment is stronger than the recent weakening in some resale segments in the relative price change in favour of new homes which has been going on for years,” writes Derek Holt, VP and head of capital markets economics for Scotiabank, in a note. Via BuzzBuzzHome. Click for the full article.

Rosenberg: Toronto housing slowdown is good for economy.

The recent dramatic drop in home sales across the Greater Toronto Area is good for Canada’s economy — and may show the economy is finally moving away from a dependence on the real estate sector, according to Gluskin Sheff Chief Economist David Rosenberg. “We are going through a natural correction in Toronto real estate. I don’t think it’s going to have a deleterious impact on the national economy. I think it’s actually going to be a positive development,” Rosenberg told BNN in an interview Tuesday. Via BNN. Click for the full article.

Header image via BuzzBuzzHome.

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