M2m condos floor plan . Danger signal of Canadian property market? In August last year, British Columbia imposed a 15% transfer tax on overseas buyers in an effort to cool the property market.Please Visit: M2m condos floor plan to Get Your VVIP Registration Today!
According to the Greater Vancouver Real Estate Bureau, the average house price of the Greater Vancouver Regional Bureau (Metro Vancouver) rose 11.4% year-on-year to C $941100 in April, the most expensive real estate market in Canada.
In terms of classification, apartment prices in this area rose the fastest, rising 16.6% from a year earlier, while jumping 3.1% from a month earlier to C $554100; the average price of a multi-family house rose 15.3% from a year earlier, up 2.4% from a month earlier to C $701800; the average price of detached houses rose 8.1% year-on-year, 1.8% from a month earlier to C $1516500.
Judging from the picture below, this rebound in house prices is menacing. The blue line represents the price trend of single-family homes, which are close to last year’s highs; the prices of multi-family houses represented by the red line and apartments represented by the green line are both at record highs.
In other words, 15% of foreign property taxes only curb the pace of property transfers. As sellers wait for more aggressive buyers to emerge, there is already a new wave of buyers who don’t care about the 15% property tax.
Jill Oudil, chairman of the Greater Wendy property Bureau, said in the report that in the apartment and urban housing markets, demand has been growing for several months in a row, but supply has failed to keep pace with demand. “this imbalance is stimulating prices.”
Oudil also believes that although the volume of transactions in the real estate market has fallen by 26% according to data, it is still a seller’s market, and buyers often receive multiple bids for the same property.
If you look at the situation of household loans in Canada, it is not difficult to find that Canadian household loans as a percentage of disposable personal income have far exceeded the peak of the United States around 2008, and the ratio is still on the rise. It is worth noting that a large proportion of household loans in this country are mortgages.
Last Wednesday, Home Capital Group, Canada’s largest non-bank mortgage supplier, suffered a liquidity crisis and its share price plummeted, suspected of triggering a “Canadian version of the subprime crisis”.
The crisis was triggered by savers’ loss of confidence in the company’s future against the backdrop of a housing bubble. From March 28 to April 24, funds continued to flow out of the company’s high-interest savings account, a total decrease of $591 million.
Without HOOPP’s emergency loan support, Home Capital Group would have gone bankrupt and would have been the largest run on a bank investment institution in recent Canadian history, analysts said.
It never rains but it pours, and the crisis has spread to another non-bank mortgage company. On Monday, Canada’s Equitable Group, another non-bank mortgage company, said its deposit balance had fallen “rapidly but controllably”, and management responded that bank divestment was taking place.