Vaughan festival condo.Average house prices in Canada continue to exceed expectations. Demand for suburbs such as Burnaby is pushing the property market to new highs.Please Visit: Vaughan festival condo to Get Your VVIP Registration Today!
In September, the average price of a MLS service owned by the Canadian Real Estate Association (Canadian Real Estate Association) hit an all-time high of C $604000, up more than 17 per cent from last year.
In addition to breaking the previous price record, September was also the busiest month on record in terms of home sales, with 20, 000 more deals on top of the previous record, according to the group representing 130000 Canadian real estate agents.
The data released on Thursday are the latest eye-popping data on the Canadian real estate market. Since March, the Canadian property market has been beating expectations.
The widespread blockade due to the flu led to a sharp drop in home sales in March and April, but has been booming every month since.
People have to stay in their houses for a few months, which seems to stimulate buyers’ desire for more space, which is why prices of single-family properties in the suburbs around big cities are rising. Sean Shaun Cathcart, chief economist of CREA, said: “Home is our workplace, our children’s school, the gym, the park and so on. Personal space is more important than ever. ”
CREA says its average price is not the best measure of the market because it is vulnerable to sales of luxury homes in Toronto and Vancouver. If the two cities are excluded, the average home price sold in Canada last month was C $479000, the group said. But the increase is even higher than the overall average, with an increase of more than 20 per cent over the past year.
In fact, property sales are not just booming in the suburbs of Toronto and Vancouver. “We are also seeing an increase in demand for real estate outside the cities where we live,” said Corinne Lyall, a real estate agent at Royal LePage in Calgary. ” A total of 2405 homes in the city changed hands this month. That number has grown by more than 30 per cent over the past year and nearly 10 per cent in the past month alone.
In addition to the demand for space generated by the pandemic, the housing market has been boosted by record low interest rates, which can make people more affordable for more expensive housing.
Take a quick look at these numbers to see how to do this. With a down payment of C $120000, prospective buyers can afford to buy a C $500000 house, paying 2210 a month on a 25-year mortgage with an interest rate of 5 per cent.
But if the borrower’s interest rate falls to 2.8%, the same buyer can now afford a house worth C $600000. This adds C $100000 in purchasing power, but the buyer spends an extra C $12 a month.
Under this force, the abnormal growth of the housing market during the influenza pandemic began to make some sense.
“the question now is whether this momentum can be sustained,” said Rishi Sondhi, an analyst at TD Bank.
He believes that the current housing boom is largely due to pent-up demand after the spring sales downturn. But this is basically a thing of the past, so “home sales will cool down from unsustainable third-quarter growth in the coming quarters.”
