m city 5 condos for sale.Canadian house prices increased by 26.6%. The Canadian real estate market ended 2021 with record home prices and growth, the second year of the country’s COVID-19 pandemic.Please Visit: m city 5 condos for sale to Get Your VVIP Registration Today!
This has spread the problem of unaffordable housing from the two metropolitan areas of Wenzhou and Duoduo to other small and medium-sized cities. Industry experts say such a hot market is likely to last until 2022.
According to media reports: the Canadian Real Estate Association (Canada Real Estate Association,CREA) recently released a national house price index, showing that in the past year, a total of 666995 homes were resold across the country, an increase of 20% year on year, breaking the record just set in 2020. At the same time, the national average house price increased by 26.6% to 811700 yuan, both of which reached an all-time high. This figure is adjusted for price fluctuations (Price Volatility), so it better reflects the real changes in house prices.
It is worth noting that the phenomenon of average housing prices and “double high” growth has not only been a “patent” of the metropolitan area, but has spread to some small areas. In Chilliwack, BC province, or Cambridge or Brentford, Ontario, the house price index has risen by nearly 40%, and the typical value of a property is at least 200000 yuan higher than it was a year ago.
This means that the problem of unaffordable housing is spreading from the two metropolitan areas of Wen and duo to other small and medium-sized cities.
In traditional housing hotspots, house prices are even more shockingly high. For example, prices in several cities in South Ontario have exceeded 800000. As for the house price in the Toronto area, it has exceeded 1 million yuan. In December, the region’s house-price index rose 31% from a year earlier. It has become the norm for houses to continue to be sold at prices higher than the listed price.
Now that the country is entering the third year of the COVID-19 pandemic, 2022, the housing market shows no sign of cooling-despite warnings from federal agency Canadian Mortgage and Housing Corporation (Canada Mortgage and Housing Corp.) that the Canadian housing market is overheating and is at risk of price adjustment.
Similar to the previous two years, several major factors driving the housing market still exist, such as borrowing costs close to zero, strong housing demand, shortage of low-rise housing available for sale, and so on. These are the reasons often cited in official figures.
For example, Shaun Cathcart, chief economist of CREA, said in a news release that there are fewer properties listed for sale in Canada than ever before. The problem of unaffordable housing in the country is likely to worsen.
Yet the industry lists another (and perhaps everyone knows) reason: fierce competition as investors flock to the market.
Data from domestic banks show that investor purchases doubled during the new crown pandemic and expanded from the Toronto area to smaller markets such as Ottawa-Gatino and Halifax. Their entry into the market intensified competition and led to a sharp rise in house prices.
Donna Harding, an agent at Engel&Volkers, a real estate company, said demand for investment properties is stable and “has no end in sight” because there is a lot of competition from buyers after each house goes public, even in rural areas.
On the other hand, governments and regulators have done little to curb demand. Bank regulators and the Treasury make it harder for borrowers to get mortgages from banks. Banks say interest rates are likely to rise this spring.
The Canadian federal government also plans to increase restrictions on foreign real estate buyers. However, according to real estate agents, most buyers are permanent residents, so it is of little use to curb foreign buyers.