Langstaff Gateway Condos toronto. The Canadian housing market is grossly overvalued. During the epidemic, there was a “national house grab” craze in Canada, and citizens’ enthusiasm for buying a house became unprecedentedly high.Please Visit: Langstaff Gateway Condos toronto to Get Your VVIP Registration Today!
However, with soaring house prices, rising inflation and higher interest rates by banks, fewer and fewer Canadians are still considering buying a house.
According to a new survey by RBC, Canadians’ willingness to buy homes has declined significantly, falling to almost the same level as before the outbreak.
According to RBC Bank’s annual home ownership survey, only nearly 1/4 (23%) of respondents said they were likely to buy a home in the next two years.
Such a number may not seem small, but by comparison, as many as 30% of citizens said they would buy a house within two years in 2021, compared with 22% in 2020.
As a result, the purchase intention of Canadian citizens has fallen back to the pre-epidemic level.
Andrea Metrick, senior director of home equity financing, acquisition and distribution at RBC Bank, said in a press release on Monday: “while there is still a lot of activity in the market, our research shows that the craze for Canadians to buy homes over the past two years has subsided and we are now beginning to see pre-epidemic levels.”
The sharp decline in people’s willingness to buy homes has something to do with rising house prices. The latest data from the Canadian Real Estate Association show that Canada’s affordability worsened in February as benchmark house prices rose by a record 3.5 per cent a month.
At the same time, a recent report by the Organization for Economic Cooperation and Development (OECD) shows that Canada’s price-to-income ratio index ranks second among developed economies, after the Netherlands.
The rise in this ratio means that house prices are growing faster than income, housing affordability has deteriorated significantly, and it also shows that the Canadian housing market is seriously overvalued.
Not only that, the growth rate of Canadian house price and income gap is also the second fastest in developed countries.
In response, 54 per cent of respondents in the RBC survey said they knew they might need to buy a house far away from family and friends, so they were under a lot of pressure.