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Can this Be the Start ? Real Estate Prices Drop 1%, Largest Single-Month Decline Since 2010

My Opinion: will we see a correction in Housing in Canada ? will the Middle class be saved ? will they start to really raise Rates ? will they start to implement more measures in banking and real estate to fix this massive problem ? we shall see 1% is just a start !

Teranet: Canadian Real Estate Prices Drop 1%, Largest Single-Month Decline Since 2010
NOVEMBER 16, 2017
Canadian real estate prices are seeing tapering growth in many cities. Numbers from the Teranet-National Bank of Canada index show one of the largest monthly declines in the index’s history. The declines were led by a massive drop in Toronto, which is the biggest component of the index. The monthly decline wasn’t enough to bring any of the cities into negative territory.

“But Teranet Is Delayed!”
Teranet numbers are one of the most misunderstood indicators in housing, with people claiming it’s “delayed.” That’s not the case. Real estate boards use MLS data, which is taken from sales that have closed. Teranet uses land registry data, which are sales that have completed. It generally takes about 60 days for a sale to register in the land registry.

MLS data is often “good enough,” especially in a market going up. A market that may be getting turbulent however, may have cancellations. Any sales that fail between close and registry won’t be counted in Teranet numbers. MLS data also doesn’t capture any private market transactions. Private sales are estimated to be up to 30% of the market, and are popular with overseas property owners engaging in urban land banking. Delayed? Arguable. However you get a more accurate market measure.

Canadian Cities Saw A 1% Decline In Prices
Nationally, the Canadian urban composite saw a monthly decline, but still remained higher for the year. The 11 city urban composite dropped 1% in October, led by a huge decline in the city of Toronto. This monthly drop was the largest observed on the index since 2010. The composite still remains 10% higher than the same time last year. There’s tapering, but it hasn’t gone negative at least. Let’s look at the biggest gains and declines.

All Cities Are Still Positive On 12 Month Trends
All of the cities in the urban index were up on a 12 month basis. Largest gains were in Toronto (13.4%), Hamilton (15.7%), Vancouver (12.0%) and Victoria (14.4%). Still up, but barely, were Montreal (6.5%), Ottawa-Gatineau (5.0%), Halifax (1.9%), Calgary (1.8%), Edmonton (0.8%), Quebec City (0.6%) and Winnipeg (0.1%).

Once again, the monthly decline wasn’t enough to drag the index into negative territory. Markets that had a big run in prices, appear to be taking a breather, and giving back some of the gains. Markets that were left behind on the great Canadian real estate price jump are finally starting to see a slight bump higher.

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