festival condos in vaughan.Canadian house prices are rising by 21% a year! The number of homes sold in Canada fell in January compared with the same period last year, while the average transaction price set a new record.Please Visit: festival condos in vaughan to Get Your VVIP Registration Today!
According to CREA, the Canadian housing market sold a total of 33166 homes in January, down 10.7% from 37137 in January 2021. Seasonally adjusted, sales in January were 55043, up 1 per cent from 54482 in December.
A real estate agent said: “this situation occurs because people are not ready to sell, resulting in very little supply in the housing market.” Now I have two listings that will be listed at the end of February and early March, but it is too hasty for these sellers to sell in January. ”
Economists attribute the performance of the housing market to the high demand for housing by millennials, who are eager to buy their first homes before prices rise further, and because the epidemic has failed to reach new immigrants in Canada and investors who actively enter the market because of low mortgage rates are also driving up prices.
“it is very difficult for the housing market supply to keep up with such strong demand,” Rishi Sondhi, an economist at TD Bank, said in a report to investors. CREA has previously said there is a growing shortage in the housing market, with only 61602 new listings in January and 69196 in December.
Robert Kavcic, senior economist at BMO Bank, believes that the increase in the number of newly listed homes in the past year is normal because the demand is so strong that the imbalance between supply and demand in the housing market has intensified: “when newly listed houses receive multiple quotations and transactions within a few days on the market, it is obviously a problem of demand. Expectations of rising house prices could also hamper sellers’ listing activities and boost demand. ”
Real estate associations in several regions of Canada predict that interest rates will rise in 2022 as extremely low interest rates during the epidemic are coming to an end, but house prices will also rise with them. “Housing affordability is deteriorating rapidly, which will make it harder for first-time buyers to enter the housing market,” Rishi Sondhi said.
At present, the Canadian housing market is still a seller’s market. The CREA report points out that 85% of the regions in the country are in the seller’s market and only 15% are in balance. Coupled with the reduction in the number of newly listed houses, it has naturally pushed up housing prices everywhere.
In January, the average house price in Canada reached a record $748, up 21% from $618587 in January last year. However, if the warm regions and most areas are excluded, the average house price in Canada will fall by nearly C $160000.