Good year for bad real estate debt

Bonne année pour les mauvaises créances immobilières

Photo: Guillaume Levasseur Duty
The good performance of the real estate market, with its price rising and short selling times, is also a promise for a quick sale of the property when difficulties arise.

The files related to the bad mortgage loans have reached in 2018 a down-old ten years in Quebec. For the time being, the strength of the economy and the labour market can absorb the effects of rising interest rates.

The direction is the same as for notice of exercise as to the délaissements and sales under judicial control. In Quebec, these indicators are linked to bad mortgage debts have continued to decrease in 2018 to return to a low decade-old.

In more detail, to research firm real estate JLR indicates that a total of 7337 prior notice of the exercise have been published in the last year on buildings of all types, a decrease of 8% compared to 2017. This was the lowest balance over the last ten years in this segment. “The flourishing economy and the real estate market is dynamic help reduce the number of homeowners in financial difficulty,” says the firm.

The number of délaissements are echoed. Thus, a total of 2064 acts of this type have been published at the land Registry in 2018, down 19 % year on year. In addition to sales under the control of justice, including the number of notices issued was $ 1589 last year, a decrease of 14% compared to 2017.

The real estate market

These statistics do not necessarily indicate an improvement in the financial health of households. But the strength of the quebec economy, combined with an unemployment rate falling to 5.5% in December, just mitigate the impact of unemployment, a dynamic labour market that allows a quick recovery of a loss of employment.

The good performance of the real estate market, with its price rising and short selling times, is also a promise for a quick sale of the property when difficulties arise.

5,5%

The unemployment rate in December, combined with the strength of the quebec economy, just mitigate the impact of unemployment, a dynamic labour market that allows quick recovery of a loss of employment.

The firm specialized in the analysis of real estate data, passed into the hands of Equifax Canada in mid-December, points out that this situation has more than offset the effect of increases in interest rates on residential sales, and household finances. However, it does not refer to the tightening of mortgage rules in effect from January 2018, the impact is more long-term and should result in an increase of the assumed quality of the borrower.

Share Button