M2m condos buzzbuzz . Will the property market make a “soft landing” or a “hard landing”? The Canadian real estate market has cooled further under the influence of the tax levied on foreigners in the Greater Toronto area.Please Visit: M2m condos buzzbuzz to Get Your VVIP Registration Today!
Some analysts expect the Canadian real estate market to make a “soft landing” under the double attack of tax increases and interest rate increases. A more pessimistic analysis suggests that Canada’s huge real estate bubble could burst.
Canadian real estate sales fell 6.7 per cent month-on-month on a seasonally adjusted basis, the biggest decline since 2010, according to data released by the Canadian real estate chamber of commerce (Canadian Real Estate Association, or CREA) on Monday. This is the third consecutive month-on-month decline in Canadian property sales and the second consecutive month of decline of more than 6 per cent. Compared with the same period last year, it also decreased by 11.4%.
However, the average selling price of a Canadian home rose only 0.4% year-on-year in June to C $504000 (US $400000). If Toronto and Vancouver are excluded, the average price is only C $400000.
Sales in Canada’s 70 per cent property market fell in June, with the Greater Toronto area (Greater Toronto Area) falling the most as a result of policy changes. Real estate sales in Toronto plunged 37.7% in June from a year earlier. Falling sales led to lower house prices. In June, the average selling price of all types of homes in Toronto was C $793900, nearly 14% lower than at its peak in April.
“changes in Ontario real estate policy at the end of April clearly led to the withdrawal of many buyers in the Golden Horseshoe area and assessed how the real estate market absorbed these changes.” Said Gregory Klump, chief economist of CREA, the Canadian real estate association.
In an effort to curb soaring house prices, Ontario, where Toronto is located, introduced the Fair Housing Program (Fair Housing Plan) on April 20, one of which is a 15 per cent speculative tax on non-residents, the so-called foreign purchase tax.