daniels mpv condos toronto.House prices plummeted by 42%! Although the housing market has warmed up and risen slightly after the opening of the BC province in January, the latest forecast shows that the Canadian housing market has ushered in the harshest decline in history!Please Visit: daniels mpv condos toronto to Get Your VVIP Registration Today!
In the past two years, the real estate market activity in Canada will eventually lead to a huge housing recession!
According to the latest market forecast released by RBC Economics, home sales and prices are expected to continue to fall in the autumn until next year.
By early 2023, nationwide home sales will fall by another 17%-following a 19% decline in the second quarter, and a 13% decline between the first quarter of 2021 and the first quarter of 2022.
This will cause overall house prices to fall 42 per cent from their all-time high in early 2021, exceeding the decline in the previous four national recessions: 33 per cent in 1981-1982, 33 per cent in 1989-1990, 38 per cent in 2016-2009 and 20 per cent in 2016-2018.
In other words, this is the biggest housing recession in Canadian history!
RBC speculated that Canada was now undergoing a “historic revision”, but stressed that this did not mean a collapse of the housing market.
The federal government has decided to open the door to immigrants, and the possibility of an oversupply of new housing is low, which will “keep the market out of the death spiral”.
In addition, the Bank of Canada raised interest rates by a full 100 basis points earlier this month-from 1.5% to 2.5%.
The rate hike sent shockwaves across the market, suggesting that the bank has adopted a more positive attitude towards consumer inflation and rampant property price growth.
And the central bank will raise interest rates more by the end of 2022.
RBC’s market announcement said: “the aggressive interest rate hikes of the Bank of Canada have directly led to a bleak outlook for the Canadian housing market. We believe that there will be substantial revisions to both activities and prices. ”
However, after two years of house-grabbing craze, the housing recession currently being experienced is considered a “cooling-off period”.
The adjustment is expected to last for a year, perhaps sometime in the first half of 2023.
Benchmark house prices across Canada rose 1.5 per cent in 2019, then soared by 9.4 per cent in 2020, 19.2 per cent in 2021 and 10.1 per cent in 2022, thanks largely to the first half of this year. It is expected to decline by 7.3% in 2023.
Total house prices are expected to fall by more than 12% by early 2023, the biggest correction in the past five national housing recessions.
The average price of home sales is likely to fall by more than 17% on a quarterly basis!
Royal Bank of Canada expects BC and Ontario to be the epicenter of the downturn because buyers and homeowners in these expensive markets are the most sensitive to higher interest rates.
In other words, the housing market in Vancouver will probably decline the most during this cooling-off period.
Resale in BC province will plunge 45 per cent in 2022 and 2023, while Ontario will see a 38 per cent decline.
This “housing recession” may mean a decline in property values for new home buyers, and flexible loan repayments will rise as the central bank continues to raise interest rates.