8 elm condos.What is the impact of COVID-19 on the Canadian housing market? House prices across Canada have risen 34 per cent since the COVID-19 pandemic in March 2020.Please Visit: 8 elm condos to Get Your VVIP Registration Today!
At present, the average house price in the country has risen to 780000 yuan ($604000), compared with almost half of that in Canada, at $312000 in the United States.
During the COVID-19 pandemic, house prices in Canada were growing at an alarming rate, while house prices in some cities were out of control. At a time when young people at home are struggling with how to own their own homes, a large number of overseas buyers are pouring into the market, trying to make a lot of money out of the market. What is disturbing, however, is that the federal government of little Durudo has not issued appropriate regulation and control policies. It is feared that as time goes by, Canada will face a more serious “housing crisis”.
House prices across Canada have risen 34 per cent since the COVID-19 pandemic in March 2020. At present, the average house price in the country has risen to 780000 yuan ($604000), compared with almost half of that in Canada, at $312000 in the United States.
It soared during the pandemic, but people’s incomes did not increase, making housing more and more unaffordable. Robert Hogue, chief economist of the RBC, points out that the housing affordability of Canadians has fallen to its lowest level in 31 years. Among the G7, Canada’s “household income-to-house price ratio” (The ratio of household income to home, a measure of house price affordability) has soared far more than any other country.
As for the reason for the soaring house prices, Holland, a real estate professor at the University of Vancouver Island, says the first is persistently low interest rates. “this is a good policy for most industries that are looking forward to recovery. But in our real estate industry, it’s a super shot in the arm, “Holland said.
The second is inflation. During the economic downturn, most governments have introduced enhanced monetary stimulus (money printing), coupled with extremely low interest rates to stop the economic slowdown, so inflation is almost the current situation in western countries. However, the Canadian government has gone further than other countries.
As a result of these policies working in the real estate market, millions of people in the country, especially young people, have been completely excluded from the category of “homeowners”.
According to a recent survey, about 1/3 adults in Canada (more than 8 million) do not own a house, and about 3/4 of them want to buy a house, but cannot afford it.
Of course, youdao is “a few joys and sorrows”. Soaring house prices make many people so tangled that they can’t sleep, but also make many people clap their hands happily.
During the pandemic, real estate investors and speculators at home and abroad have been making profits-at least statistically.
In Vancouver, there are about 34% of homes whose residents are not the owners of the house. In Toronto, the proportion is 25%. The hot housing market has led to an influx of investors, who are particularly keen to snap up apartment units because they are easier to rent.
Worryingly, the Federal Liberal Party of Little Trudor does not seem to care. During his six years in office, Canadian house prices have risen by 81%, but he still likes to pretend to be an “enthusiast dedicated to solving the housing burden”.
This summer, for example, the prime minister made a special trip to Hamilton, Ontario, to visit a comprehensive housing project.
In September, Durudo Jr. and Deputy Prime Minister and Finance Minister Chrystia Freeland raised the issue of housing affordability in a campaign speech, discussing making housing affordable for Canadians rather than turning the real estate market into an investment vehicle for the global elite. However, their actual actions are very limited and passive.
The last time they focused on cracking down on investors in the housing market was in 2019, when they imposed a 1 per cent tax on overseas buyers in BC province and Ontario’s big cities.
Such a policy environment makes the domestic housing market an ideal soil for foreign investors. Statistics show that 1/5 of new apartments in Vancouver are bought by foreigners, and in Richmond, the proportion has increased to 1/4.
Another factor driving house prices is immigration. Although the number of migrants accepted in the country declined somewhat during the COVID-19 pandemic, the federal government promised to resume the number of migrants soon and expand it to 400000 a year.
Statistics Canada shows that immigrants spend more money on Canadian housing than people born at home, so the expansion of immigration is bound to further push up house prices.
In the end, the bitter consequences of the excessive demand for housing caused by these policies will be borne by Canadian-born indigenous residents, especially young people, as well as those who are not well-off among new immigrants.