Canada Mortgage and Housing Corporation (CMHC) today released its 2016 Annual Report titled “Innovating for Better Housing Outcomes”.

In 2016, CMHC supported over 500,000 Canadian households through long-term social housing commitments and provided mortgage loan insurance for more than 350,000 homes. The report captures how CMHC, as Canada’s authority on housing, contributes to the stability of the housing market and financial system while providing support for Canadians in housing need.

Contributing to stability of the housing market and financial system

• Mortgage loan insurance facilitates access to housing finance for qualified Canadian homebuyers, supporting the stability of our financial system and economic growth. In 2016, CMHC provided $64 billion of mortgage loan insurance for more than 350,000 homes. Of our approved homeowner applications, 14.1% were in rural areas and 64.3% supported first time home buyers. As at 31 December 2016, total insurance-in-force stood at $512 billion.
• CMHC’s securitization programs facilitate access to funds for residential mortgage lending. This contributes to the stability of Canada’s financial system and supports competition in the mortgage market. In 2016, CMHC provided $144.4 billion in guarantees through its securitization programs.
• CMHC’s mortgage loan insurance and securitization activities operate on a commercial basis without the need for funding from the Government. As a result of these activities, CMHC generated a net income of $1.4 billion for the year ended 31 December 2016. At year end, total mortgage insurance capital available was $18.6 billion, representing 384% of CMHC’s minimum capital target. On the continued strength of our performance, CMHC will be implementing a dividend framework and will begin paying a dividend to the Government of Canada in 2017.
• CMHC is focussed on becoming a world leader in housing risk management. In 2016, CMHC worked with the Department of Finance to strengthen our housing system through changes to the rules for mortgage loan insurance and supported the development of a lender risk sharing proposal that aims to rebalance risk in the housing finance system.
• CMHC is committed to transparency and aims to lead through information and insight. In 2016, CMHC expanded its research and analysis activities to provide decision-makers with timely and relevant data about housing in Canada. Information diffusion is a key tactic in developing better ideas; gathering and sharing data and analysis remains a priority for the future.  

Providing support for Canadians in housing need

• CMHC provides federal funding in support of housing programs so that Canadians in need have access to affordable and suitable housing, including on-reserve. In 2016, in addition to the $2 billion the Government already invests in housing each year, CMHC was entrusted with delivering more than $4 billion in new investments to improve access to affordable housing. CMHC supported over 500,000 Canadian households in housing need through these investments.

• In 2016, CMHC led consultations with Canadians to inform Canada’s first National Housing Strategy. A summary report of Canadians’ views, ideas and insights was released in November 2016 and identified affordability, sustainability, inclusivity, and improving quality of life as among the most important housing outcomes to address in the Strategy. Reducing core housing need by supporting the development and implementation of the National Housing Strategy in one of CMHC’s main priorities for 2017.

“In 2016, CMHC truly re-emerged as Canada’s authority on housing. We significantly increased our support for Canadians in housing need through renewed investments in affordable housing; we led a national consultation to inform Canada’ first National Housing Strategy all while supporting Canadian’s access to housing finance through our ongoing mortgage loan insurance and securitization activities.” 
— Evan Siddall, President and CEO

“The overall quality of our mortgage loan insurance portfolio continued to improve. Combined with our securitization operations, CMHC generated $1.4 billion in net income for the year.”
— Wojo Zielonka, Chief Financial Officer and Senior Vice-President, Capital Markets

Housing starts are trending higher at 213,768 units in April 2017, compared to 210,702 units in March 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

“New housing construction increased in Canada, with seasonally adjusted data exceeding 200,000 units for five months in a row”, said Bob Dugan, CMHC’s Chief Economist. “The increase in the trend was mainly due to apartment construction in British Columbia and Québec, which was partly offset by a decline in Ontario’s multiple starts.”

Monthly highlights

• Apartment construction continues to drive the residential market in Halifax. April saw over 400 additional multiple starts breaking ground, bringing year-to-date multiples starts growth to 169% compared to last year. Demand is being driven in part by the ageing population as downsizing baby boomers are increasingly selling their homes and moving into rental units.
• Even though the rate of housing starts in the Province of Québec was down in April, the total for the first four months was up by about 30% in the province’s urban centres. This result was mainly due to the significant construction of apartments, especially rental units, in the Montréal and Québec areas. As well, single-detached home starts have been strong so far in 2017, thanks in part to tightening resale market conditions.
• Despite the slight decline registered in April, residential construction in the Gatineau area showed positive results for the first four months of the year. The gains were particularly strong in the rental segment, with construction getting under way on many seniors’ housing units. Overall, starts were supported by an increase in housing demand and a decrease in the number of unsold units on the new and existing home markets.
• The trend in housing starts in Toronto remained stable in April, as slight increases in low-rise homes were offset by some declines in apartment starts. Overall, new home construction this year has been building momentum as both new single-detached and townhome starts trended higher to reach a nine-year high in April. Tight conditions in the resale market continue to cause demand to spill over into the new home market.
• In London, April 2017 single-detached starts were much higher than in April 2016 and the ten year average for April. The gap between house prices in Toronto and London has widened significantly, making new single-detached homes in London that much more appealing to retirees from Toronto who wish to sell their home but not downsize.
• In Winnipeg, a decrease in inventories in the new home market and balanced resale market conditions are allowing builders to increase production. Actual housing starts in April increased year-over-year for the fourth consecutive month, boosting year-to-date starts to their highest levels since 1987.
• The trend measure for housing starts in the Kelowna CMA surged upwards again in April, due to an increase in both single-detached and multi-unit construction. In particular, a number of large apartment rental projects are now underway as builders continue to respond to the low vacancies that have characterized Kelowna’s rental market for the past two years.
• Housing starts in Metro Vancouver trended higher for the first time in four months, led by multiple-family residential construction. Builders are responding to demand in the market as eight in ten townhouses and all apartments were sold at completion during the last two months.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of Canada’s housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next.

The standalone monthly SAAR of housing starts for all areas in Canada was 214,098 units in April, down from 252,305 units in March. The SAAR of urban starts decreased by 15.3 per cent in April to 199,485 units. Multiple urban starts decreased by 16.7 per cent to 134,314 units in April and single-detached urban starts decreased by 12.1 per cent, to 65,171 units.

Rural starts were estimated at a seasonally adjusted annual rate of 14,613 units.

Preliminary Housing Starts data is also available in English and French through our website and through CMHC’s Housing Market Information Portal. Our analysts are also available to provide further insight into their respective markets.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

Provided By: CMHC

Prices in Canada’s most expensive city for existing homes appear to have rebounded from the impact of a tax on foreign buyers as Vancouver realtors reported Tuesday a huge swing in demand for condominiums and townhomes in April.

The Real Estate Board of Greater Vancouver said the composite benchmark price for all residential properties in Metro Vancouver was $941,100 in April, an 11.4 per cent increase from a year ago but a five per cent jump in the past three months.

Sales of all property types dropped 25.7 per cent from a year ago to 3,533 in April but were 4.8 per cent above the 10-year average for the month. Compared to March sales, April activity fell 0.7 per cent.

“Our overall market is operating below the record-setting pace from a year ago and is in line with historical spring levels. It’s a different story in our condominium and townhome markets,” said Jill Oudil, president of the board. “Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm.”

The board said for the first four months of the year, condominiums and townhomes accounted for 68.5 per cent of all residential sales, up from the 58.2 per cent average over the same period last year.

“Until more entry level, or missing middle, homes are available for sale in our market, we’ll likely continue to see prices increase,” Oudil said. “There’s been record building this past year, but much of that inventory isn’t ready to hit the market.”

The Vancouver market has seen sales decline steadily since the province announced an additional 15 per cent tax on foreign buyers effective Aug. 2, 2016. Ontario followed with its own 15 per cent on foreign buyers, calling it a non-resident tax and extending it to the entire Greater Golden Horseshoe which affects a population of about nine million people in southern Ontario.

Doug Porter, the chief economist with Bank of Montreal, said the evidence is clear that the tax in British Columbia did cool Vancouver’s single detached home market. “Vancouver was as hot as a fire cracker in 2016,” said Porter. “It looks the shock of the tax is wearing off. But who knows where prices would have been absent the tax?”

April new listings for detached, attached and apartment properties in Metro Vancouver totalled 4,907, a 19.9 per cent decrease from a year ago but a three per cent increase from March.

The total number of residential properties currently listed for sale in the region were 7,813 in April, a 3.5 per cent increase from a year ago and three per cent bump from a year ago.

“It’s worth pointing out that according to the realtors each (segment) of the market is a seller’s market still,” said Porter, referring to detached, condominium and townhomes.

The sales-to-active listings ratio for April 2017 was 45.5 per cent for all property types, two per cent below March 2017.

“Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months,” said the REBGV.

By property type, the sales-to-active listings ratio was 26 per cent for detached homes, 58.2 per cent for townhomes, and 82.2 per cent for condominiums.

Sales of detached properties dropped 38.8 per cent from a year ago to 1,979 last month. The benchmark price for detached properties was $1,516,500, an 8.1 per cent increase from a year ago and a 1.8 per cent from March 2017.

Sales of apartment, or condominium, properties dropped 18.3 per cent from a year ago to 1,722 while the benchmark price of $554,100 was up 16.6 per cent from a year ago and 3.1 per cent from March.

Attached, or townhome, property sales fell 10.8 per cent in April from a year ago while the benchmark price was $701,800, a 15.3 per cent increase from a year ago and a 2.4 per cent from March.

Toronto numbers are due Wednesday, the first reporting period since it brought in its tax, but Porter doesn’t think Canada’s largest city will have the same reaction.

“I would suggest the tax was a shock in B.C.. I don’t think it was shock in Ontario, there was plenty of warning and hints (it was coming),” said Porter.

Garry Marr

Financial Post

Demand for condominiums and townhomes continues to drive the Metro Vancouver* housing market.

Residential property sales in the region totalled 3,553 in April 2017, a 25.7 per cent decline compared to April 2016 when 4,781 homes sold and a 0.7 per cent decrease from the 3,579 sales recorded in March 2017.

April sales were 4.8 per cent above the 10-year average for the month.

For the first four months of the year, condominium and townhome sales have comprised a larger percentage of all residential sales on the Multiple Listing Service® (MLS®) in Metro Vancouver. Over this time, they’ve accounted for 68.5 per cent, on average, of all residential sales. This is up 10 per cent from the 58.2 per cent average over the same period last year.

“Our overall market is operating below the record-setting pace from a year ago and is in line with historical spring levels. It’s a different story in our condominium and townhome markets," Jill Oudil, Real Estate Board of Greater Vancouver (REBGV) president said. “Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm.”

New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,907 in April 2017. This represents a decrease of 19.9 per cent compared to the 6,127 units listed in April 2016 and a three per cent increase compared to March 2017 when 4,762 properties were listed.

The total number of residential properties currently listed for sale on the MLS® system in Metro Vancouver is 7,813, a 3.5 per cent increase compared to April 2016 (7,550) and a three per cent increase compared to March 2017 (7,586).

The sales-to-active listings ratio for April 2017 is 45.5 per cent for all property types. This is two per cent below March 2017 and is indicative of a sellers’ market. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

By property type, the sales-to-active listings ratio is 26 per cent for detached homes, 58.2 per cent for townhomes, and 82.2 per cent for condominiums.

“Until more entry level, or ‘missing middle’, homes are available for sale in our market, we’ll likely continue to see prices increase,” Oudil said. “There’s been record building this past year, but much of that inventory isn’t ready to hit the market.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $941,100. This represents a five per cent increase over the past three months and an 11.4 per cent increase compared to April 2016.

Over the last three months, the benchmark price of condominiums has seen the largest increase in the region at 8.2 per cent, followed by townhomes at 5.3 per cent, and detached homes at 2.8 per cent.

“Home buyers are looking to get into the market and they’re facing fierce competition,” Oudil said. “It’s important to work with your local Realtor to help you navigate today’s marketplace.” Sales of detached properties in April 2017 reached 1,211, a decrease of 38.8 per cent from the 1,979 detached sales recorded in April 2016. The benchmark price for detached properties is $1,516,500. This represents an 8.1 per cent increase over the last 12 months and a 1.8 per cent increase compared to March 2017.

Sales of apartment, or condominium, properties reached 1,722 in April 2017, a decrease of 18.3 per cent compared to the 2,107 sales in April 2016.The benchmark price of an apartment property is $554,100. This represents a 16.6 per cent increase over the past 12 months and a 3.1 per cent increase compared to March 2017.

Attached, or townhome, property sales in April 2017 totalled 620, a decrease of 10.8 per cent compared to the 695 sales in April 2016. The benchmark price of an attached unit is $701,800. This represents a 15.3 per cent increase over the past 12 months and a 2.4 per cent increase compared to March 2017.