Langstaff Gateway Condos by Kylemore.House prices in Canada are soaring. In an effort to curb the rapid rise in house prices, Canada’s finance minister will announce in his budget on Thursday that a huge amount of money will be invested to stimulate housing construction and ban most foreigners from buying houses for two years.Please Visit: Langstaff Gateway Condos by Kylemore to Get Your VVIP Registration Today!
Students, foreign workers and permanent residents of Canada are not included in the ban, the source said.
Data show that Canadian house prices have soared by more than 50% in the past two years. Canadian house prices rose to an all-time high in February, with benchmark home prices rising to C $869300 (A $921394) per unit as many home buyers poured into the market ahead of higher bank interest rates.
Similar to the previous two years, several major factors driving the housing market still exist, such as borrowing costs close to zero, strong housing demand, shortage of low-rise housing available for sale, and so on. These are the reasons often cited in official figures.
For example, Shaun Cathcart, chief economist of CREA, said in a news release that there are fewer properties listed for sale in Canada than ever before. The problem of unaffordable housing in the country is likely to worsen.
Yet the industry lists another (and perhaps everyone knows) reason: fierce competition as investors flock to the market.
Data from domestic banks show that investor purchases doubled during the new crown pandemic and expanded from the Toronto area to smaller markets such as Ottawa-Gatino and Halifax. Their entry into the market intensified competition and led to a sharp rise in house prices.
Donna Harding, an agent at Engel&Volkers, a real estate company, said demand for investment properties is stable and “has no end in sight” because there is a lot of competition from buyers after each house goes public, even in rural areas.
On the other hand, governments and regulators have done little to curb demand. Bank regulators and the Treasury make it harder for borrowers to get mortgages from banks. Banks say interest rates are likely to rise this spring.
