m city condos prices.The average house price will rise by another 5%? On October 6th, RE/MAX of Canada released a market report entitled “Canadian Housing Market Outlook for Autumn 2021”.Please Visit: m city condos prices to Get Your VVIP Registration Today!
According to its real estate agents and brokers across Canada, average housing prices across Canada can be expected to rise by another 5% in the final months of 2021 (September to December), the report said.
Among them, average house prices of various types in Vancouver are expected to rise by another 2-5% from September to December this year, Victoria by another 5%, and Nanaimo by another 9%. Therefore, the temperature in BC province will drop in the coming months, but house prices will not fall.
RE/MAX also said that of all the 29 local Canadian markets it tracks, 26 are currently in a “seller’s market” with strong demand and supply shortages.
According to the report, judging from market indicators, market activity across Canada will be stable in the last few months of 2021, so the national average price of all types of housing may rise by another 5% during that period.
House prices have risen significantly across Canada from January to August. Take independent houses with the biggest price increases. From January to August this year, the average price of independent houses in the 26 markets tracked by RE/MAX rose by 6.8% to 27.3% compared with the whole of last year, such as a rise of 16.4% in Vancouver. The rising trend of independent house prices will continue “driven by strong demand from young families”.
House prices are rising across Canada, driven by low supply and high demand, but even more pronounced in big urban areas such as Toronto and Vancouver. In this case, the “alternative market” in big cities may become the second choice for home buyers, such as Lanli, Abbotsford and Misson in BC province, and Emminton and Calgary in Ai province. The relatively low local housing prices, coupled with low interest rates and the continuation of the trend of working from home, have attracted many buyers to buy homes. According to RE/MAX, there will still be many buyers going to the “alternative markets” in the final months of the year.
Compared with the average house prices for the whole of last year, prices in Nanaimo, Victoria and Vancouver in BC province all rose significantly from January to August, such as detached house prices up 23 per cent, 19.1 per cent and 16.4 per cent respectively.
As an “alternative market”, from January to August this year, Nanaimo not only rose 23% compared with the whole of last year, the largest increase in the province, but also the highest price increase in apartments and urban houses in the province, at 17.6% and 65.8%, respectively. The increase in urban housing is even as high as 65.8%, the highest in Canada. However, at present, the average price of apartments in Nanaimo is 343000 yuan, while the average price of urban houses is 512000 yuan, which is still relatively affordable.
From Vancouver to the east, house prices in Kilona, Calgary, Edmonton, Regina and Winnipeg are expected to rise by 5%, 0%, 4%, 1% and 8%, respectively.
Raising interest rates will limit the rise in house prices.
Although house prices across Canada will still rise by another 5% for the rest of the year, market factors are likely to cool demand. Robert Kavcic, senior economist at BMO Bank, believes that if financial conditions tighten, demand will boost in the short term, but will soon be suppressed by rising interest rates.
Interest rate cuts during the outbreak played a role in improving the credit capacity of home buyers, but now that Canada is recovering and the threat of inflation has increased, the time to raise interest rates is just around the corner. The central bank is now widely expected to raise interest rates in the second half of next year, so house prices are likely to come under downward pressure.
The ultra-low mortgage rates in Canada since last year will be mentioned in all market reports.
Lower interest rates make home buyers more affordable, but it also increases demand and pushes up house prices. Therefore, after a period of time, the increased affordability of low interest rates will be offset by rising house prices. This offset occurred in Canada a long time ago.
The indicator of housing affordability is the Housing affordability Index (HAI), which takes the form of the ratio of housing cost to household disposable income. In the second quarter of 2021, Canada’s national HAI reached 36.3%, up 1.6 points from 34.7% in the first quarter. In other words, the average Canadian household needs more than 1/3 of its income for monthly mortgage payments. This is the highest level since 2008.