Ajax condos for sale . The Canadian housing market is afraid to welcome the “biggest bubble”! With the Canadian housing market booming, many people began to worry about a housing bubble, and some even called on the government to find a way to intervene.
Real estate agents revealed that in the past few months, many people have been forced to raise prices and grab houses in order to buy houses, sometimes by tens of thousands or even hundreds of thousands.
Since November last year, Canadian house prices have soared, and the market psychology of “if you don’t buy it is too late” has reappeared. In January, average house prices rose 22.8 per cent to an all-time high of 620000 1525 yuan. Brokers in Toronto and Vancouver revealed that they felt the peak of the bubble finally returned.
The property market statistics released by the BC provincial real estate association (BCREA) on March 11 showed that February sales increased by nearly 90% over the same period last year, and was 1000 higher than the previous month’s record set in February 2016. Property prices in MLS rose 17.3% in February compared with the same period last year.
In February, Vancouver sales were nearly 43% higher than the ten-year average, and the benchmark price was close to C $1.1 million. Sales in the greater Toronto area surged more than 50 per cent, with average house prices rising 14.9 per cent year-on-year to a record C $1045488.
The economist is Rosenberg (David Rosenberg), who is famous for accurately predicting the housing collapse in the United States caused by the subprime mortgage crisis 15 years ago and the founder of Rosenberg Research&Associates, a Toronto-based consulting and investment firm.
In a recent interview with BNN Bloomberg, he said that Canada’s real estate market is in the midst of a “huge bubble”, perhaps one of the biggest in history.
He said that when the labor market was severely damaged by the COVID-19 pandemic, the rise in housing prices was meaningless. “the situation we face is that house prices are up 18 per cent year-on-year, while wages have barely increased.”
Rosenberg also pointed out that Canada really did not experience the same extensive housing crisis as the United States experienced between 2007 and 2008.
“the unemployment rate in our country is higher than it was at the peak of the last two recessions,” Rosenberg said. Therefore, I would like to say that there are still very serious deflationary loopholes in the labour market. “
In addition to Rosenberg, policy makers at the Bank of Canada have also noted the recent rise in housing prices.
On March 10, the Bank of Canada said in a statement on interest rate policy that housing transactions were “much stronger than expected”. But the central bank left its interest rates unchanged at 0.25%.
Tiff Macklem, governor of the Central Bank of Canada, said that stimulating the Canadian economy to pull out of the recession triggered by the COVID-19 epidemic as soon as possible remains the top concern of the Bank of Canada, and to this end, it is necessary to continue to implement loose monetary and interest rate policies.
On the 11th, Lawrence Schambre (Lawrence Schembri), deputy governor of the Bank of Canada, said that the surge in house prices in the country was very unusual, but did not indicate whether the central bank would take any action on it.
Now buyers are playing with fire.
Robert Kavich (Robert Kavcic), an economist at BMO, conveys similar concerns, arguing that home buyers in Ontario are now “playing with fire” when house prices have become a concern.