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Real estate buyers walk from massive deposits

In the preconstruction real estate industry, a growing concern has emerged as homebuyers face difficulties closing their property transactions, leading some to walk away from substantial deposits, with values as high as $320,000.

This trend is particularly prominent in the lowrise homes of Greater Toronto Area (GTA) suburbs, which experienced rapid price surges during the pandemic, followed by significant declines. As closing dates approach, many buyers find themselves unable to complete their purchases due to issues such as falling appraisals and mortgage qualification challenges.

Recent data from the Toronto Regional Real Estate Board, as reported by the Toronto Star, indicates a 6% drop in unit sales across the GTA in October compared to the previous year. Average prices have also decreased, falling from $1,195,469 in May to $1,125,928 in October.

You can read more on the matter here.

What’s going on?

• Is The Office Tower Market Imploding? (theDeepDive)

• MP Michael Chong Wants Feds to Explain ‘Divergence’ with UK Saying A Terrorist Attack Is ‘Very Likely’ in Canada (theDeepDive)

• An AI just negotiated a contract for the first time ever — and no human was involved (CNBC)

• South Korea Bans Short-Selling Until June 2024 (theDeepDive)

• Portuguese PM steps down amid lithium, hydrogen corruption probe (Reuters)

• Jeff Bezos Looks to Save A Buck, Announces Move to Florida (theDeepDive)

• Trump's Wealth Has Jumped $500 Million Since He Left the White House (Bloomberg)

• Cruise’s Tumultuous Cruise To Self-Driving Cars (theDeepDive)

• Elon Musk’s Brain Implant Startup Is Ready to Start Surgery (Bloomberg)

• Has EV Production Peaked? (theDeepDive)

What’s the latest?

• Failed climate targets: The commissioner of the environment's latest audit indicates that Canada is on track to miss its 2030 target to reduce carbon emissions by at least 40% from 2005 levels. The audit reveals that the most crucial steps for cutting emissions are neither identified nor prioritized, leading to a downward revision of the expected reduction to only 34%, which is short of the target range.

• Automakers Liable: The UK government's planned Automated Vehicles Bill will assign legal liability for crashes involving self-driving cars to the manufacturers rather than the owners. This legislative framework is aimed at promoting the safe development of the autonomous vehicle industry, providing clarity for insurers, and ensuring safety for users.

• Canada Housing: The Trudeau government has announced plans to expedite the construction of 26,400 homes on federal lands within the next five years to address the critical housing shortage. The strategy includes selling federal property to builders and redeveloping it for housing, with an aim to make 5,300 of these homes affordable, a significant increase compared to the past.

• Italian Discount: Italian stocks are trading at a 50% discount to global peers, the deepest in 35 years, amidst concerns over Italy's heavy debt burden, stagnant economic growth, and fiscal health. Investors are wary, as reflected by the decline in units of BlackRock's iShares MSCI Italy ETF, and some believe the market is too risky despite the potential for bargains.

• Carbon Cuts Just For Eastern Canadians: Canadian Environment Minister Steven Guilbeault firmly stated that as long as he holds his position, there will be no further exemptions to Canada's carbon pricing system. This declaration came after a Conservative motion seeking additional carve-outs from the carbon pricing was defeated in the House of Commons.

The new uranium rush

The stock market and stuff

• The SEC Has A Crypto Expert Recruitment Problem (theDeepDive)

• Datadog stock surges 30% after cloud company beats estimates, revises guidance up (CNBC)

• Tether Could Teeter On UK Govt’s Tighter Hold On Stablecoin Regulation (theDeepDive)

• Starbucks to raise wage for U.S. store workers by at least 3% from 2024 (CNBC)

• Crescent Point Acquires Hammerhead Energy For $2.55 Billion (theDeepDive)

In the juniors

• Verses AI Selects Biological Computing Firm As Second Private Beta Partner (theDeepDive)

• Surge Battery Metals Averages 3,003 ppm Lithium Over 54.1 Metres In Latest Hole (theDeepDive)

• WeWork Finally Files For Bankruptcy (theDeepDive)

FULL DISCLOSURE: LNG Energy Group is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of LNG Energy Group. The author has been compensated to cover LNG Energy Group on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.