Mondrian condos West District.House prices in Canada continue to rise. The latest data released by the National Bank of Canada, Canada’s sixth-largest commercial bank, show that the annual composite house price index rose 2% month-on-month in July, the second largest month-on-month increase since statistics began in 1999.Please Visit: Mondrian condos West District to Get Your VVIP Registration Today!
If you look at the index from a year earlier, the index is also rising sharply, rising 10.92% year-on-year, further expanding from the 10% increase in June. It is reported that seven of the 11 major Canadian real estate markets covered by the index recorded an increase in house prices in July. It is reported that the index is mainly used to evaluate the changes in the sales price of second-hand houses in independent houses.
In recent years, house prices in Vancouver and Toronto in Canada have continued to rise, worrying locals. According to statistics, the average annual income of a family in downtown Vancouver is more than 70,000 US dollars. According to the current average price of single-family housing, a local family can only buy a house without food or drink for 20 years. With regard to the accelerated rise in house prices in Canada, Paul Ashworth, chief North American economist at Capital Macro, said that the accelerated rise in house prices reflects the spread of housing market frenzy not only in Toronto and Vancouver, but also in other cities.
In order to control house prices, the Canadian government of British Columbia previously announced that foreigners who want to buy a house in Vancouver will now have to pay an additional 15% property transfer tax to curb soaring house prices. It is reported that the transfer tax will take effect from August 2, and both foreign enterprises and individuals must pay as long as they buy homes in Vancouver. The government of British Columbia stressed that the transfer tax was levied separately from the ordinary transfer tax in the province. In addition, the government will allow Vancouver to impose an annual vacancy tax on some uninhabited homes, a move intended to raise the cost of home ownership for those who do not live in Vancouver often but hold real estate, pushing more vacant homes into the rental market.
Property sales in Vancouver have declined since the introduction of a tax on foreigners buying homes in Vancouver, Canada. In response, Paul Ashworth said, “these measures will have an impact on house prices for a month or two, but we still believe that this is mainly a domestic demand-driven real estate bubble, and based on the premise that interest rates will only go down, prices in many parts of Canada will rebound again by the end of the year.”
However, Paul Ashworth believes that the frenzy in the Canadian real estate market as a whole may be nearing its peak, and the decline in home sales over the past few months suggests that the pace of price increases will begin to moderate later.