Real Estate Firm Avison Young Defaults on Canada Loan, S&P Says

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Real estate services firm Avison Young (Canada) Inc. says it’s close to finishing a restructuring to clean up its balance sheet after it defaulted on a senior term loan, causing a ratings downgrade.

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Canadian Real Estate Industry Revenues Plunge Due to Higher Interest RatesNew data from Statistics Canada shows that the real estate industry in Canada has experienced a significant decline in revenues due to higher interest rates. Between 2021 and 2022, operating revenue linked to real estate agents and brokers dropped by 21.8%. This decline can be attributed to the Bank of Canada's interest rate hikes, which have dampened existing home sales and affected the commercial real estate market. Despite the decline, industry revenues in 2021 were still 34.5% higher than pre-pandemic levels in 2019.
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