Saskatchewan mortgage arrears on the rise

Saskatchewan mortgage arrears on the rise

Saskatchewan mortgage arrears on the rise

A new report from the Canadian Bankers Association revealed that the proportion of mortgage arrears in Saskatchewan has more than doubled since 2014, up to approximately 1 out of every 130 mortgages (0.78%).

This is over 3 times higher than the national average (0.24%), and the highest provincial level since 1992, the Association stated.

The data came amid news from the Saskatoon Region Association of Realtors stating that home sales in the city fell by 13% year-over-year in May, and a 7% decline year-to-date.

Every price range has exhibited weakened activity, with the notable exception of homes worth less than $200,000, which had a 30% annual increase in sales.

“Although the sales to listing ratio is moving towards balance, I emphasize we are still in a buyer’s market” Saskatoon Region Association of Realtors CEO Jason Yochim stated in a news release, as quoted by CTV Saskatoon News.

Read more: Canadian households increasingly relying on debt to stay afloat – study

“However, homes that are priced to market and in good condition will still command great interest and in some cases competing offers,” Yochim added.

Sale prices have seen a similar downward trend, with the median home sale price in Saskatoon ($320,000) falling below the 5-year average ($341,980). Year-to-date, the average sale price stood at $334,449, representing a 4% decline from May 2017.

 

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CMHC Q1 report reveals arrears rate