Housing starts fall for a third straight month
Housing starts kept falling in July, the third straight monthly drop, while bond yields eased slightly and shelter costs kept nudging inflation higher. Toronto and Vancouver both posted softer August sales, though tightening listings in Toronto could hand sellers a bit more leverage this fall. RBC's economists argue the recovery is finally underway, just not a fast one. Employment fell for the month too, a reminder that confidence remains fragile even with borrowing costs holding near their recent lows.
The Numbers
229,074
Housing starts fell to 229,074 in July, extending declines from 240,773 in June and 254,178 in May. Fewer starts today mean a thinner new-build pipeline down the road, at a time when builders already point to soft pre-sales and high financing costs.
Rates & Money
Five-year bond yield ticks down again (1 minute read)
The five-year benchmark yield eased to 3.41% from 3.42%, a marginal move that still feeds into how lenders price fixed mortgages. Nothing here signals a change in direction, just a market waiting on the next data point.
Shelter costs keep inching up in the CPI basket
Shelter costs in the CPI basket rose again, to 190.3 from 190.2 in June and 190.1 in May. It's a slow climb rather than a jump, but it keeps overall inflation stickier than the Bank of Canada would like.
The Market
Toronto listings tighten as sales slip again (5 minute read)
Sales slipped for a second straight month in the Toronto region as new listings kept tapering off, the local board reported. Townhomes took the hardest hit on both volume and price, but thinner supply heading into fall could finally give sellers some room to negotiate again.
Vancouver-area sales extend their slide (1 minute read)
Home sales across Metro Vancouver fell again in August, extending a lag that has stretched from spring into fall, the local board says. The board expects the softer pace to continue through year end, a signal for agents there to keep pricing conversations realistic.
Employment falls, jobless rate holds steady (2 minute read)
Employment fell in August, giving back some recent momentum, with manufacturing the only sector to post a real gain. The jobless rate held steady, a sign the pullback was narrow rather than broad, though it's still worth raising with buyers weighing their own job security before they commit.
Industry
RECO board handover lands amid ongoing reform (3 minute read)
RECO's board is set to change hands as an interim leadership term wraps up, handing a new board the task of carrying forward a year of significant reform. Ontario agents should watch whether the new board keeps up the pace or slows it down.
A U.S. MLS's pre-marketing rule draws industry attention (6 minute read)
A pre-marketing rule at a Washington state MLS, already the subject of a lawsuit from Compass, is being watched as a possible template other U.S. MLSs adopt for coming-soon listings. It's part of a broader fight over how much control brokerages keep over listings before they hit the open market.
The Playbook
Trust, not information, is the scarce commodity now (5 minute read)
Real Estate Magazine's negotiation column argues that clients today aren't short on advice, they're short on someone they trust to sort through it. The takeaway for agents: compete on judgment and follow-through, not on being the only source of information a client can find.
Expired listings and FSBOs are the quiet opportunity (4 minute read)
Lab Coat Agents argues that older expired listings and long-sitting FSBOs are the most overlooked opportunity in the market right now, with counts still climbing. The session laid out scripts and follow-up systems built specifically for sellers who already tried, and failed, to sell without an agent.
A pretty website isn't enough for real estate (9 minute read)
Luxury Presence makes the case that a good-looking website isn't the same as a working one, and that live MLS feeds, lead capture and local search visibility matter more than templates. The piece is aimed at agents shopping for a Squarespace site who assume polish covers everything else.
The Argument
RBC says the housing recovery is finally arriving (3 minute read)
RBC Economics argues Canada's housing market is finally turning toward recovery, pointing to resales that have kept climbing since spring, inventory that's begun to level off, and prices showing early signs of stabilizing. The bank is careful to frame this as gradual progress, not a return to boom conditions, which is worth repeating to clients expecting a quick turnaround.
Design & Living
Home of the Week: a manor built for a railway engineer (3 minute read)
This week's Home of the Week is a manor built for a railway engineer in the Victorian era, the kind of character property that draws buyers willing to trade turnkey convenience for architectural pedigree. It's a useful reference point for clients weighing a heritage home against a new build.
Good bones beat fresh paint in this Tsawwassen sale (2 minute read)
A dated ranch-style home in Tsawwassen drew competing offers despite needing updates, with the listing agent crediting its solid bones for the interest. It's a reminder that structure and lot can outweigh tired finishes for the right buyer, especially on a generous parcel.
Quick Hits
Manitoba widens its rent control net (1 minute read)
Manitoba's government is expanding rent control to cover a wider band of monthly rents, a shift landlords and property managers will need to factor into their numbers.
Toronto's condo market slides again (3 minute read)
Toronto's condo market slid again, Canadian Mortgage Professional reports, another sign the segment's oversupply problem isn't easing yet.
Last call for the Women in Mortgage Summit Canada (3 minute read)
This week marks the last chance to register for the Women in Mortgage Summit Canada, per Canadian Mortgage Professional.