Condo news toronto . The supply of real estate is double-diving. Starting from New Year’s Day this year, the federal government raised the stress test threshold for mortgage loans. On the 15th, the Canadian Real Estate Association announced national home sales in January this year.
It fell 14.5% from December last year, while the number of houses sold in new markets nationwide plunged 21.6% from December last year. The association believes that this has something to do with the federal increase in stress tests for home buyers, which makes prospective buyers adopt a wait-and-see attitude to suspend the purchase plan.
Citing data from the country’s real estate sales network MLS, the Canadian Real Estate Association pointed out that the overall national building sales figures in January were lower than that in December last year. Compared with different regions of the country, the most serious decline was in the Dajin Horseshoe region of Ontario, including Greater Toronto, although (Greater Golden Horseshoe), which includes emerging property markets such as Mandike and the lowland plains of British Columbia, recorded an increase in building sales last month. But it does not offset the decline in property sales in the Golden Horseshoe area.
The association pointed out that 85% of the country’s market recorded a decline in the number of new houses listed last month, mainly due to a sharp drop in the supply of new houses in the Greater Toronto area, which led to a sharp drop in the number of new houses in the country.
Pike (Andrew Peck), chairman of the association, claimed that according to MLS figures, national property sales reached a multi-year high in December, but the decline in domestic sales has been “plug in” since New Year’s Day. He will understand that domestic home buyers obviously took the lead in buying properties before the federal government implemented the higher threshold mortgage stress test policy on January 1 this year, in order to avoid the tightened test. As a result, property sales rose in December, which led to a sharp drop in property sales last month.
He pointed out that the new strategy of the federal government has obviously brought unease and confusion to a large number of prospective property buyers in the country. even building developers, in view of the unstable factors of home buyers, temporarily did not launch a new market in January and adopted a wait-and-see attitude to understand the trend of home buyers towards this policy, so as to decide on the strategy of launching new real estate.
Citing MLS data, the association pointed out that the number of new listings in the country last month fell 21.6% compared with December last year, the biggest decline since the spring of 2009, indicating that government policy affects not only property buyers, but also domestic property developers, who choose to observe the new government stress test strategy and the impact of interest rate hikes by the central bank on buyers at this stage, so as to locate the sales strategy.
However, the association figures also pointed out that despite the fact that national building sales seemed unsatisfactory last month, the national average house price still increased by 2.3% compared with a year ago, with an average price of more than 480000 yuan, indicating that the country’s housing appreciation potential can not be underestimated.
Guan Rongguang, a senior local real estate practitioner, believes that there are many reasons for the sharp drop in property sales across the country, and that the federal government’s tightening of mortgage stress tests is not the only reason. He said that the rising prices of single-house houses have led to a drop in sales, while sales of condominium buildings have repeatedly reached record highs, so it is not possible to take the figures as accurate. He added that the recent active turnover of local housing shows that the property market is still attractive to some extent, and predicts that the overall property market should gradually improve this year.
The Canadian Real Estate Association pointed out that the national property sales dropped sharply last month, and the worst-hit area was the Greater Toronto area, including the Greater Toronto area. Kwan Jung-Kuang believes that sales of cottage-style detached houses that do not have to pay management fees have returned to around 2015 levels. But at the same time, sales of co-managed Condo units in the Greater Toronto area have increased unabated.
He believes that local prospective buyers are still full of confidence in the property market, because the prices of detached houses in the Greater Toronto area are often more than 900000 yuan, which may not be affordable, so the second choice is that the sales of independent houses seem bleak.