Residential real estate returns to prepandemic levels
- Canadian existing-home sales fell 0.9% in November
- Prices declined 1.1% from the previous month
- Number of newly listed homes dropped 1.8% in November
- Household debt-service ratio reached a record-high 15.2%
- Real-estate activity expected to pick up in the second half of 2024
Canadian existing-home sales and prices experienced a decline in November, with sales volume returning to prepandemic levels. The Canadian Real Estate Association reported a 0.9% drop in existing-home sales on a seasonally adjusted basis. Prices also declined by 1.1% from the previous month. The number of newly listed homes decreased by 1.8% in November. The household debt-service ratio reached a record-high of 15.2%, indicating that households are scaling back spending to manage higher debt payments. However, real-estate brokerage Royal LePage expects real-estate activity to pick up in the second half of 2024, anticipating interest rate cuts by the Bank of Canada.
Public Companies: Canadian Real Estate Association (null), S&P CoreLogic Case-Shiller (null), BMO Capital Markets (null), Royal LePage (null), Bank of Canada (null)
Private Companies:
Key People: Paul Vieira (), Robert Kavcic (economist at BMO Capital Markets)
Factuality Level: 7
Justification: The article provides information on Canadian existing-home sales and prices in November, citing data from the Canadian Real Estate Association and real-estate brokerage Royal LePage. The information is based on seasonally adjusted and unadjusted data, indicating a decline in sales and prices from the previous month. The article also mentions the impact of higher interest rates on the economy and household debt payments. The statements made by economists and market expectations are presented as opinions or forecasts. Overall, the article provides factual information with some opinions and forecasts included.
Noise Level: 7
Justification: The article provides information on Canadian existing-home sales and prices in November, indicating a decline from the previous month. It mentions the impact of higher interest rates on the economy and households scaling back spending. The article also includes data on the household debt-service ratio and estimates for mortgage loan renewals. However, it lacks in-depth analysis of long-term trends or antifragility and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Real estate market
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the decline in Canadian existing-home sales and prices in November, indicating a slowdown in the residential real estate market. This information is relevant to financial markets, particularly the real estate sector.
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