8 elm condo floor plan.Canadian house prices will fall sharply. According to a recent report released by the Royal Bank of Canada (RBC), there will be a “historic correction” in the Canadian real estate market.Please Visit: 8 elm condo floor plan to Get Your VVIP Registration Today!
In 2022 and 2023, resale in British Columbia and Ontario will fall by 45% and 38%, respectively, and the house price index will fall by more than 14% from the quarterly peak.
The report predicts that average house prices in Canada will fall by about 12 per cent by the second quarter of 2023 from their peak in February 2022. The report expects the “revision” to last about a year and end around the first half of 2023, but a deeper and longer recession cannot be ruled out.
Real estate consultancy Knight Frank reported that house prices in the world’s major cities slowed for two consecutive quarters at the end of the third quarter. Cities in New Zealand, Canada and Norway have seen double-digit contractions. As household financial pressure increases, household savings that supported the real estate boom during the outbreak are rapidly running out. When the purchasing power of households decreases, people are more likely to save money. With low inventories still supporting prices, the coming downturn is likely to be more pronounced in trading.
In the eurozone, banks are increasingly rejecting home loans and tightening conditions on loans already made. Demand for home loans in the eu fell at its fastest pace in a decade, with new home loans falling 30 per cent in September from a year earlier, according to a bank lending survey in the fourth quarter.
In Hungary, for example, house prices have risen by 151% since 2015, the biggest increase in the European Union and more than three times the average in the European Union. This is due to record low interest rates, generous housing subsidies and substantial increases in real wages. It can be said that the Hungarian real estate market is one of the hottest markets in the EU in the past decade.
Hungary’s property market is cooling rapidly as the EU’s highest interest rate cuts demand for mortgages. The number of property transactions fell 1/3 in September, while mortgages fell 38 per cent compared with last year, according to the Hungarian central bank.
Meanwhile, property transactions in the UK fell at an annual rate of 32 per cent in September. Mortgage applications in the United States fell to their lowest level in 25 years. Mark Zandi, chief economist at Moody’s Analytics, an analysis firm, believes that the US housing market is “evaporating”. Paul Ashworth, chief US economist at consulting firm Capital Economics, agrees, saying real estate activity is “completely destroyed”.
The Toronto figures are even more striking. Sales of single-family homes in the city plunged 96 per cent and apartment sales fell 89 per cent.