Union City Price.I can’t bear the house price! Toronto, Canada released data on the new housing market in August, showing that transactions in both high-rise apartments and detached houses plunged more than 80% from a year earlier, and house prices finally began to decline month-on-month. The Toronto Star bluntly said that new home buyers disappeared after raising interest rates.Please Visit: Union City Price to Get Your VVIP Registration Today!
Only 533 new apartments were sold in the greater Toronto area in August, down 83 per cent from a year earlier, according to data released by the Construction and Land Development Association (BILD) on Thursday.
533 sets of what concept? A new building launched in Toronto today, with more than 800 units, far higher than the one-month sales in the entire Greater Toronto area.
In terms of low-rise housing, only 89 new single-family homes, including detached houses, were sold in August, not only down 86% from a year earlier and worse than the record of falling below 100 units for the first time in July.
In other words, fewer than 200 new homes were sold in low-rise homes in the Greater Toronto area in July and August. No wonder the luxury homes launched in Richmond Hill in June are still not sold out and prices have to be cut quietly.
Data for June and July show that despite dismal sales in the past two months, house prices are still rising.
Since August, however, new homes have been unbearable, and prices are beginning to show signs of a pullback.
Not only did trading volume plummet in August with no buyers, but there were signs of a pullback in house prices.
The benchmark price of new single-family homes (including freestanding, semi-detached and townhouses) is about C $1861587, a correction of more than C $70, 000 from a high of $1933912 in July, although it is up 22% from August 2021.
Prices for new apartments moved in the same direction, with a benchmark price of C $1189682 in August, a slight correction from July ($1191716), but an 11% increase from a year earlier.
David Wilkes, chief executive of BILD, said that while demand was suspended as consumers grappled with rising borrowing costs, low inventories and persistent restrictions on housing supply were keeping prices high.
“in other markets where demand is weak, you often see prices fall. But you don’t see this in the real estate market because people recognize that supply has to increase in the medium to long term to balance the market, “he said.”
‘The launch of new homes has slowed as demand declines, ‘Mr. Wilkes said.
Urbanation, another developer tracking market research firm, said developers were expected to postpone 10000 apartments because of falling sales of uncompleted flats.
In addition to rising interest rates, the residential construction industry faces short-term challenges from so-called raw material prices, including rising costs in everything from cement to steel.
However, contrary to the views of the real estate sector, experts have downgraded the outlook for the Canadian housing market, with the Oxford Institute for Economics recently issuing the toughest warning that Canada is heading for a hard landing and that home prices will plummet by 30%.
The Oxford Institute for Economics (Oxford Economics) published a report entitled “the Canadian economy is heading for a hard landing” on September 20th, saying that the probability of a Canadian economic downturn has passed the tipping point, a moderate recession (moderate recession) is expected to begin in the fourth quarter of 2022, and the resulting shock is expected to cause house prices to fall by about 30 per cent from their peak.
Moreover, the Oxford Institute for Economics warns not to expect a rebound in house prices any time soon. A 30 per cent drop in house prices caused by the recession is unlikely to rebound to record highs any time soon, because liquidity is a bigger problem for investors. the buyer base will be much smaller.
On Sept. 23, a large Canadian real estate developer launched a 38-foot unit in a luxury property development in the Chinese area of Richmond Mountain, which turned out to be about 400000 lower than that of other developers.
This developer is originally a large traditional developer, but it also shows the nature of the supremacy of money in this luxury property market.
When the development was launched in early June, G developers only launched 41-foot and 45-foot detached houses, and in order to attract buyers, G developers promoted it at C $1.99 million.
The central bank has just begun to raise interest rates, and the new housing market has not yet been affected. 41-foot luxury detached houses in the Richmond Mountains Chinese area are less than 2 million, which of course attracts many Chinese buyers.
Seeing such a hot demand, the developer regretted it and immediately increased the price by $150000.
The lowest 41 feet is increased from 1.99 million to 2.14 million, and 45 feet is also increased to nearly 2.5 million feet.
The offer doesn’t count, the new offer can be the same as the existing house, and many buyers run away immediately.
As a result, the new house has not been sold out from summer to autumn.
Seeing the latest price of the property on Wednesday, I found that the large developer could no longer bear it and quietly reduced the price by about 60,000 by 41 feet.