Union city condos.The Canadian real estate market is cooling. The restraining effect of interest rate hikes on the Canadian real estate market, which has been heating up rapidly in recent years, is emerging.Please Visit: Union city condos to Get Your VVIP Registration Today!
Statistics released by the Canadian Real Estate Association on May 16 show that national housing sales in Canada fell 12.6% in April compared with the previous month.
The house price index fell 0.6% in April from a month earlier, but still increased by 23.8% from a year earlier. Unseasonally adjusted real estate prices across the country rose 7.4% in April from a year earlier. The actual volume of unseasonally adjusted transactions was 25.7% lower than in the same period last year.
Jill Odil, president of the Canadian Real Estate Association, said that after several years of record-breaking growth, the housing market in many parts of Canada has cooled sharply in the past two months, which is in line with the jump in interest rates and the fatigue of buyers.
Sales in about 80% of Canada’s local markets are falling. Average house prices across the country are largely affected by sales in the two most active and expensive markets-the Greater Vancouver area and the Greater Toronto area.
From March to April this year, home sales recorded by the national networking system fell by 12.6%, indicating that monthly activity in the real estate market is at its lowest level since the summer of 2020.
The number of newly listed homes fell 2.2 per cent in April from a year earlier, while the ratio of sales to new listings fell to 66.5 per cent, meaning activity in the property market is at its lowest level since June 2020. The Canadian Real Estate Association believes that this ratio is on the verge of forming a seller’s market and a balanced market.
By the end of April, Canada’s national real estate market still had 2.2 months of inventory, a historically low level.
After the COVID-19 epidemic, the Canadian central bank slashed interest rates to ultra-low levels, and house prices continued to rise, with an overall increase of more than 50 per cent so far.
The central bank of Canada announced on March 2 that it would raise interest rates for the first time since October 2018, raising the benchmark interest rate from 0.25% to 0.5%. On April 13th the Canadian central bank further raised interest rates to 1% and announced that it would start quantitative tightening. The next window for the Canadian central bank to raise interest rates is June 1. Public opinion generally expects the Canadian central bank to raise interest rates further.
