Vaughan festival condo. Mortgages in the Canadian property market have declined. According to Statistics Canada, mortgage lending slowed sharply, growing at its slowest pace since 1996 in 2018.Please Visit: Vaughan festival condo to Get Your VVIP Registration Today!
Home sales peaked in the second quarter of 2016 and have been on a downward trajectory for most of the time since, according to seasonally adjusted data. National home sales fell 9.1 per cent month-on-month in February to their lowest level since November 2012, according to CREA.
The slowdown in Canadian home sales, from mortgage activity to retail spending, has been reflected in some stocks in the stock market. Retail markets such as furniture and decoration activities have slowed and retail sales in housing-related segments have declined. Year-on-year spending on furniture, household appliances and building materials fell for the fourth consecutive month as of the end of January, according to Imperial Commercial Bank of Canada. Canadian home prices have risen sharply over the years, especially in big cities, which have given way to higher mortgage rates and stricter lending conditions. Between July 2017 and October last year, the Bank of Canada raised interest rates five times, cutting overnight lending rates to 1.75%, the highest level in a decade.
Interest rates in the housing market increase the cost of debt service. The slowdown in lending makes sense for banks, which rely on mortgage loans in the housing market to boost lending activity by about 40%. The mortgage slowdown has been a problem for banks for more than a decade.
Mortgage loans at the six big banks fell by an average of 11.2% in 2018. Although the bank’s share price rebounded, it did not meet expectations. According to a 2017 report by the Canadian Real Estate Association, each home sale in Canada spends an average of $8200 on furniture and household appliances. Home sales appear to have peaked, falling 9.1 per cent month-on-month in February to their lowest level since November 2012, according to CREA. This means a decline in demand for items such as washing machines and mattresses.
High-priced commercial housing has delayed consumers, and the property market may be further subdivided. Housing-related consumption has slowed, such as the furniture and decoration markets.