yonge city square condos review.Does it take three years for Canadian house prices to hit bottom? Home sales in Canada are the worst since 2009, according to data released by the Canadian Real Estate Association (CREA).Please Visit: yonge city square condos review to Get Your VVIP Registration Today!
In January 2023, the number of residential transactions in Canada was 20931, down 37.1 per cent from January 2022 and 3 per cent from December 2022. The average transaction price in January was C $612204, down 18.3 per cent from C $749437 in the same period last year and 1.8 per cent lower than in December 2022.
The decline offset a small rise in December-indicating a lack of clarity as to whether the market has hit bottom or is close to a low.
Despite CREA’s ambiguous attitude, BMO Capital Markets Chief Economist Douglas Porter unequivocally told investors that it took an average of three years for Canadian house prices to bottom out in the past seven house price adjustments. This time it is only a year from the peak in February last year.
If history repeats itself, Canadian house prices are far from bottoming out.
Douglas Porter said that due to the sudden and intensive interest rate hikes, the real estate market is still in the process of digesting the rate hikes rather than over.
Since March 2022, the Bank of Canada has raised interest rates eight times in a row, pushing up mortgage rates.
However, in the latest rate hike, Bank of Canada Governor Tiff Macklem said the Bank of Canada would suspend and assess the impact of the rate hike on the economy and inflation. Higher interest rates are putting pressure on the property market, with sellers afraid to pay high prices and buyers afraid to enter the market because their borrowing costs are high even if house prices fall.
The DouglasPorter forecasts that house prices in Canada will fall by 20-25 per cent from their peak by the end of the current economic cycle.
He also said that the Bank of Canada is likely to raise interest rates again in May, but house prices have not yet absorbed the rate hikes of the past year.
On prince Edward island, average house prices fell by 10.2% month-on-month, Ontario by 3%, Alberta by 2.9% and BC by 2.6%.
Rishi Sondhi, an economic analyst at TD, said in a report to investors that the performance of major cities showed continued weakness in terms of sales.
In early February, the Professional Association of Real Estate agents in Quebec said that as the market continued to slow, home sales in Montreal in January fell to levels not seen since 2009.
According to data released by the Greater Wendy property Bureau, housing transactions fell by more than half in January 2023 from a year earlier, down 21% from December.
Rishi Sondhi believes real estate buying and selling activity could bottom out sometime in the first half of 2023. The combination of a stable job market, strong population growth and yields is likely to lead to a new round of decline.
In addition, the volume of new housing is still very small, and there seems to be no sign of an overall upward trend in housing supply.
Therefore, the current market is the stalemate stage of buyers and sellers, individual houses are unattended and swarmed to grab offer does not affect the major trend and direction. That is, buyers wait and see and sellers do not want to sell easily.
While the real estate market is stuck, the housing rental market is not idle at all.
Vancouver is once again the most expensive city in the rental housing market in Canada, according to data recently released by Rentals.ca.
The latest figures show that Canadian rents grew by 10.7% in January 2023, compared with 14% in BC province.
Currently, the average rent for an apartment in BC province is C $2163 per month for an one-bedroom unit and C $2769 per month for a two-bedroom unit.
The average rent is 5% higher than in Ontario.
The data also show that in January 2023, the average rent for Bennabi was 2947 yuan per month, while Richmond was 2636 yuan per month.
In addition, Vancouver apartment rents increased by nearly 23%, but not as much as the 32.7% increase in Bennabi.