Langstaff Gateway Condos floor plan. Toronto real estate bubble the second in the world! The surge in house prices is mainly due to the fact that the two most expensive cities, Toronto and Vancouver, have seriously affected average prices.Please Visit: Langstaff Gateway Condos floor plan to Get Your VVIP Registration Today!
In addition, a data called house price index (HPI) in the MLS system can more accurately measure the price level of the whole market. But the data show that HPI has risen by 21.5% in the past December, which is even higher than the current average.
In the Greater Toronto area, the average selling price of a house in September was C $1136280, up 18% in a year, according to the local real estate board. In addition, in Vancouver, the average selling price is C $1186100, more than a 13% increase last year.
Cliff Stevenson, chairman of CREA, said: “there is still a lot of demand waiting for the increasingly scarce number of listings, so the real estate market is still very challenging.”
The epidemic has also had an unexpected impact on house prices, because instead of making people more conservative in consumption, economic uncertainty has made people eager to buy more houses.
The Bank of Canada also spurred the economy by slashing benchmark interest rates. When lenders pass on to consumers at historically low mortgage rates, it is undoubtedly adding fuel to the otherwise hot housing market, making people more willing to borrow money to buy homes.
Recently, Swiss Bank (UBS) released the annual research report “UBS Global Real Estate Bubble Index 2021”, six cities around the world are considered to have a real estate bubble. Among them, Toronto and Vancouver are the two most serious real estate bubbles in the world. Toronto ranks second and Vancouver sixth.
In the annual ranking, UBS surveyed the housing markets of 24 major cities in Europe, North America and Asia and assessed and compared them based on factors such as house prices and local income levels.