Union city condos.Is Vancouver real estate really popular? Independent home prices rose sharply year-on-year, but higher interest rates damped prices in the Greater Vancouver and Greater Toronto areas in the second quarter.Please Visit: Union city condos to Get Your VVIP Registration Today!
A report released by RE/MAX in Canada shows that in the Greater Toronto real estate market, the average price in the Central and West sides of the 416 remains relatively stable, while Durham, Peel, York and Halton and Dufferin have abandoned some of the amazing gains achieved in recent years. Preliminary second-quarter median prices for the Squamish area of Greater Vancouver and Sunshine Coast are similar to those for the first quarter, while West Vancouver and Vancouver West / Howe Sound rose moderately.
Alexander, president of Canada’s RE/MAX, said growing political concerns, soaring inflation and interest rate hikes by the central bank had changed the mood of buyers almost overnight. These rapid and fierce growth has contributed to the downward trend of home sales and house prices, but this is actually a double-edged sword for people’s affordability to buy homes.
The value of the Greater Toronto real estate market in the second quarter was 10% to 15% lower than in the first quarter, Durham (- 14.6%), York (- 12.9%), Horton (- 12.7%), Dufflin (- 12%) and Pierre (- 11.2%). Only 15 per cent of the GTA market, compared with the first quarter, the average price rose in the second quarter. The specific data are as follows:
75% of the market in the Greater Vancouver area declined in the second quarter, down from its peak in the first quarter and showing an overall downward trend. Of this total, Whistler fell slightly more than 30 per cent, northern Delta fell nearly 13 per cent, and Langley fell about 3 per cent, with the Feisha valley in the middle of the quarter. Squamish and Sunshine Coast were unchanged from the previous quarter, while Wenxi rose slightly by 2.4 per cent and Xiwen by 8.2 per cent. The specific data are as follows:
Elton Ash, executive vice president of RE/MAX Canada, believes that although house prices have fallen somewhat, market conditions are relatively stable. On the whole, the sales volume and the total number of listings are still in balance. In Vancouver, 50% of the market supply in June was lower than in the same period last year, while sales fell accordingly. This trend may stabilize house prices in the future.
In the past six months, with the recurrence of the epidemic, the situation of working from home has changed accordingly, and home buyers are reconsidering moving to the suburbs. In the second quarter, 31% of housing market sales in the greater Vancouver area increased. The current situation of falling house prices and the potential threat of rising prices have prompted buyers who were active in the second quarter to switch to independent homes, Alexander said. At the same time, the Bank of Canada’s interest rate hike policy also prompted home buyers to lock in a better five-year fixed interest rate as soon as possible.
Some existing sellers take advantage of this opportunity to start selling larger houses or houses in excellent suburban neighborhoods. This is also good for buyers, given the convenience of loans, as the gap between the price of existing properties and the purchase price of new homes has narrowed considerably. Apartment owners also see the benefits of the “price difference” because the value of apartments remains relatively stable compared with detached houses where the value has declined.
Even though some buyers have suspended their purchase plans, overall, the purchase intention of home buyers is expected to continue to rise. Although the increase in interest rates has slightly increased the cost of buying a house, we cannot ignore the impact of the rental market. In Vancouver and Toronto, average rents have risen by double digits compared with the same period last year, while potential buyers have to face the market situation, and more people think that owning a home makes more financial sense.
