Union city condo markham.House prices are more than double overvalued! According to the Moody’s report, Canadian real estate is seriously overvalued, with house prices more than double in some cities, and the top 10 overvalued bubble cities in Canada are all in Ontario.Please Visit: union city condo markham to Get Your VVIP Registration Today!
Canadian real estate is grossly overvalued, according to a large agency intelligence firm. Moody’s Analysis released a valuation assessment of house prices for the fourth quarter of 2021, which found that prices continued to be above trend, indicating that valuations were too high, especially in southern Ontario.
Canadian real estate shows a significant deviation between house prices and trend (trend). As of the fourth quarter of 2021, urban house prices were overvalued by 22.9%.
By province, the most overrated provinces are Nova Scotia (25.3%), Prince Edward Island (23.6%), Quebec 17.7% and Ontario (17.1%).
House prices in Alberta and sa are undervalued by about 20%.
Now take a look at the top 10 overrated cities, all concentrated in southern Ontario.
Topping the list is Peterborough, where house prices are overvalued by 108 per cent. The second is St. Catherine Niagara Falls (107%), and the third is Windsor (100%). Prices in the top three cities are more than double overvalued.
Take a look at the top 10 cities:
1. Peterborough: 108%.
2. St. Catherine Niagara Falls: 107%.
3. Windsor: 100%.
4. Hamilton: 78%.
5. London: 69%.
6. Barry: 67%.
7. Brantford: 67%.
8. O’Shahua: 63%.
9. Quilff: 57%.
10. Waterloo-Kitchener: 51%.
It can be seen that house prices in the top 10 cities are all overvalued by more than 50%, and the highest three cities are more than double.
However, overestimation is not unique to southern Ontario. Moody’s estimates that 77.1% of the Canadian market is currently overvalued. Here’s how overvalued or undervalued homes are in major Canadian cities.
Canada’s three largest real estate markets are overvalued, including Greater Toronto (43.6%), Greater Montreal (30.3%) and Greater Vancouver (22.3%) are well above the national trend. Canada’s Halifax (13.0%) is also overrated, but lower than the national average.
However, Moody’s also said that an overvalued market does not mean a collapse is inevitable.
A long period of stagnant house price growth is possible, which is called a “soft landing”.
Statistics Canada released a record-breaking inflation index of 6.7 per cent on Wednesday, and the market expects the Bank of Canada to raise interest rates sharply in June, by at least 50 basis points. CIBC even thinks: “the central bank even has good reason to raise interest rates by 75-100bp at once.” ”
The aggressive rate hike is designed to cool runaway inflation in Canada, but it will also significantly increase the cost of home mortgages.
If interest rates are raised by another 50 basis points or even 100 basis points on June 1, the central bank’s overnight interest rates will rise to 1.5-2%, while the mortgage rates of the five major commercial banks will rise to 3.7% 4.2% accordingly.
In this way, mortgage interest rates have increased by at least 1.25% since February, equivalent to about 1 million per loan, requiring an extra C $12500 a year in interest and an additional cost of more than $1000 a month.
