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March 12, Canadian real estate owners, including flippers, are taking a break from renovations.

Bank of Canada BoC s show chartered banks are holding onto less outstanding residential renovation debt in Q4 The annual growth of renovation debt has been on the decline for almost two years.

This represents a Timmins red light district. The annual slide is nothing compared to where it was near peak.

Canadian Real Estate Renovation Debt The outstanding balance of loans for residential real estate renovations, at Canadian chartered banks. Source: Bank of Canada, Better Dwelling. The balance is also down The most recent quarter is the 7th quarter the annual rate of growth has been negative. The trend was last negative for this long in to Canadian Real Estate Renovation Debt Change The annual percent change in outstanding loans for residential real estate renovations, at Canadian chartered banks.

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Banks are seeing a decline in renovation loan balances. This is potentially another indicator demonstrating peak real estate growth has passed.

In many markets, the end of a renovation boom is also a of the end of the business cycle. In Canada, the declines typically line up with recessions and oil patch trouble.

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