Wednesday 26 September 2012

And now Canada....


Toronto New Home Sales Plunge 64 Percent; Lowest August on Record



25 September, 2012


New home sales in Toronto plunged 64% in the wake of government's changes to insured mortgages (30yr to 25yr) and home equity line of credit restrictions (80% max to 65% max) which took effect in July.
Lowest August on Record

Reader Corey emailed the above comments and a news link from the Canada BILD Association: 
New Home Sales Slip in August

 According to RealNet Canada Inc., BILD's official source of new home market intelligence, the 1,242 homes sold in August 2012 add up to the lowest monthly sales since 2009 and the lowest August on record. Year-to-date sales have remained on par with 2010 but below its record-breaking 2011 predecessor.


"The federal government has been working on reducing household debt levels and recently adjusted mortgage lending rules. August was the first full month with the new rules in place and it appears these regulations have affected consumer confidence, resulting in significantly reduced sales of new homes," explained BILD President and CEO Bryan Tuckey. "BILD will be carefully monitoring new home sales during the next three months to see if this decline becomes a trend."

August '12
Low Rise
High Rise
Total
Region
2010
2011
2012
2010
2011
2012
2010
2011
2012
Durham
182
206
119
7
7
12
189
213
131
Halton
241
610
75
24
283
15
265
893
90
Peel
202
281
267
89
63
66
291
344
333
Toronto
18
47
22
751
1,027
469
769
1,074
491
York
356
385
114
108
587
83
464
972
197
GTA
999
1,529
597
979
1,967
645
1,978
3,496
1,242
GTA % Chg


-60.95%


-67.21%


-64.47
Jan-Aug
11,212
12,357
10,710
12,347
18,055
13,591
23,559
30,412
24,301

"Slip" hardly seems the operative word. Crash is more like it.

Also consider  
Bernanke Declares War on Canadian Economy (Rest of the World Too)

Addendum:

I said Canada previously but those sales are specifically the Toronto region.  


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