UPFRONT
STATISTICS
Here we go again
CONSUMER CONFIDENCE SLIPS With COVID-19 on the rise again and provincial economies forced to backtrack on their reopening strategies, confidence among Canadian consumers eroded in several regions in October, largely driven by fresh fears of rising unemployment. Nationwide, the Conference Board of Canada’s consumer confidence index saw a decrease of 9.5 points between September and October – the largest monthly drop since April.
As the number of COVID-19 cases spikes, optimism among potential buyers seems to be in short supply COLD WEATHER wasn’t the only thing to return to Canada in October. An alarming rise in COVID-19 cases across the country has many Canadians once again wondering what the next few months will mean for their livelihoods, work-life situations – and, for recent homebuyers, their investments. The housing market has yet to be knocked off its record-shattering course – sales were up
9.0%
Unemployment rate in Canada in September
46% year-over-year in September – but that golden goose is laying its eggs in a rickety nest. Consumer confidence is dropping, population growth is at record low levels, and most firsttime home buyers expect to need financial assistance from their families to purchase property. Canadians seem ready for a second tussle with the coronavirus – only time will tell if the country’s housing market is, too.
25,384
Increase in Canada’s population in the second quarter (a record low)
0.83%
Estimated equity Toronto condo buyers have built since April
Canada
121 80 74
$293,000 Average deferred mortgage amount in Canada as of October
Sources: Statistics Canada, CREA/Better Dwelling, RBC Capital Markets
AN UPHILL BATTLE
TAX INEQUITIES THREATEN BUSINESS STABILITY
According to BMO’s recent poll of first-time homebuyers, few have been preapproved for a mortgage – and more than half say they’ll need family help to get into the housing market.
The discrepancy between commercial and residential tax rates in major markets could limit businesses’ ability to weather the COVID-19 pandemic, Altus Group warned in a recent report. In several cities – most notably Montreal, Toronto, Halifax and Quebec City – the commercialresidential tax ratio is well above Altus’ recommended 2:1 ratio.
19%
of prospective buyers are already preapproved for a mortgage
11%
COMMERCIAL AND RESIDENTIAL TAX RATES (PER $1,000 OF ASSESSED PROPERTY VALUE)
56%
of first-time buyers say they’ll rely on family for financial assistance
expect to receive $100,000 or more in financial assistance from family
Commercial tax rate
Vancouver Calgary Source: BMO/Pollara Strategic Insights Housing Survey
6
Residential tax rate
$40 $35 $30 $25 $20 $15 $10 $5 $0 Edmonton Saskatoon
Regina
Winnipeg
Toronto
Ottawa
Montreal Quebec City
Halifax
Source: Canadian Property Tax Rate Benchmark Report, Altus Group
www.mortgagebrokernews.ca
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03/11/2020 2:51:17 am