Leftbank condos developments. Canadian house prices will eventually fall sharply! The Canadian real estate bubble will eventually burst, causing house prices to fall sharply.Please Visit: Leftbank condos developments to Get Your VVIP Registration Today!
Like New Zealand, Canada will be vulnerable to house price adjustments in the near future because the high price-to-income ratio and abnormal price-to-rent ratio have been maintained for a long time.
In fact, policymakers may already be considering changes after the Bank of Canada imposed a tax on foreign buyers. Foreign investors have proved to be the main competitors of Canadian residents, and many cannot outbid overseas investors at all. Although most of the apartments sold across the country are vacant, Canadians find it difficult to control property in their cities.
Bloomberg made the above chart of housing valuation in different countries according to the comprehensive index of price-to-income ratio and price-to-rent ratio. We can find that the countries most affected and vulnerable by house price adjustment are New Zealand, Canada and Sweden.
But don’t be happy too soon, because central banks will cut interest rates from August 1st. This is the first time in more than a decade that the Fed has cut interest rates, a move aimed at stimulating the economy.
The Bank of Canada’s benchmark interest rate has remained at 1.75 since 2018. According to the Bloomberg, the Canadian economy now seems to be doing its own thing, rather than following the United States; at least in the short term, experts do not expect Canada to follow the pace of the Fed’s rate cut.