The fall edition of CAAMP survey report is out. This is an excellent piece of free information made available by Will Dunning, via CAAMP. A clear market trend forecast together with mortgage related statistics – this is a gold mine for someone who is looking for some numbers.
Since we favour charts over words, you will find most of the information are graphically represented in this post.
This time Dunning clearly said that the new mortgage regulation will only add insult to the already injured Canadian real-estate industry. We feel that he has a valid point. Despite of weak economic conditions and job losses, Canadians have been paying down their mortgages very consistently.
Canadian borrowers have managed to pay off their mortgages ahead of planned amortization period most of the time. Last year alone they have pumped $23 billion extra payment into their mortgage principle.
About 6% of all home owners took equity out of their property. The average take-out amount was $49,000.
Canadian home owners on an average have 70% equity in their home.
Dunning opposed the forecasts made by CMHC and CREA saying that – regardless of those downplaying the effect of new mortgage rule on Canadian housing market – the aftermath will be serious. Probably he is right. TREB reported a 17% lower sale y/y in mid-November.