Renewed signs of life and strength have recently become apparent in the national housing market, especially in the GTA, Home Capital Group CEO Yousry Bissada said.
“Sales activity is picking up, with particular strength in the GTA,” Bissada told analysts last week, as quoted by the Financial Post.
“The latest data on economic growth, employment and interest rate expectations are consistent with our outlook for a stable and balanced real estate market for the rest of 2019.”
Latest figures from the Toronto Real Estate Board backed up Bissada’s observations: housing sales in the region grew by 24.3% on an annual basis in July.
This will more than compensate for the weakness in Vancouver, Bissada assured. “The Company does not expect the recent decline in prices and sales volume in the Vancouver real estate market to have a material impact on the Company’s business.”
During the second quarter, Home Capital’s mortgage originations went up to $1.28 billion, from the $1.23 billion level during the same period last year. Robustness was especially apparent in single-family originations, which increased by more than 10% year-over-year, “with particular strength in our alternative mortgage segment.”
Total Q2 loans were at $16.84 billion, growing by 1% quarter-over-quarter and 9% annually.
“We’re pleased with our results because they’re beginning to reflect the impact of some initiatives that we at Home Capital have been working very hard at for the past few quarters,” Bissada stated.
“Our focus on lending to the high-quality market segments we have targeted, primarily the business for self-borrower and the new Canadian, is producing good results.”