🏠 Market Update
Canadian housing is such a hot topic now,
Even Simu Liu had to take a jab at it in his Juno Award speech.
🇨🇦
After a 75 bps rate increase and another 50 bps expected on 6/1,
The red-hot Canadian housing market finally begins to cool.
April home sales volume Y/Y down 25.7%.
Even as Housing Price Index (HPI) is up 23.8% Y/Y,
April average prices dropped 6% M/M or -8.6% from Feb.
Some properties in Toronto devalued as much as $200K in 2 months.
Buyers began to back out from contracts - 2017 all over again.
From Federal to Provincial, governments are busy updating housing policies.
Even BoC states that housing will be a key consideration for monetary policy.
🇺🇸
US April existing home sales fell for a third straight month.
Volume M/M down 2.4%; Y/Y down 5.9%.
Even though the median price Y/Y is up 15% at $391,200
Northeast saw average price falling from last summer’s peak.
Higher rates and higher prices already drove mortgage origination down.
Q1 ‘22 has a total of $859 billion origination - down 25% from Q1 ‘21.
If you haven’t watched Simu Liu’s Juno opening monologue,
I highly recommend it - whether you are a Canadian or not.
Clip source: CBC Music on Youtube
Data sources: CREA, NRA, The Fed.
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