Riocan living . The deputy governor of the Bank of Canada is a little restless! The Canadian Mortgage and Housing Corporation (CMHC), the federal housing regulator, warned in a report just released.Please Visit: Riocan living to Get Your VVIP Registration Today!
According to the report, CMHC’s analysis and assessment of the national market showed that in the third and fourth quarters of last year, the Canadian market was still higher than CMHC thought the housing market was overheated.
“the continuing pandemic continues to affect the Canadian housing market in the fourth quarter of 2020,” CMHC Chief Economist Bob Dugan said in a press release.
“strong real estate market activity and rising prices have led to new imbalances in some Canadian markets or exacerbated existing imbalances in already fragile markets.”
In its housing market assessment report, CMHC also noted that Toronto’s vulnerability increased from medium to high last quarter, while other major markets, including Montreal and Vancouver, remained moderate.
Ottawa and Halifax are highly vulnerable, as are Hamilton and Moncton in Ontario.
In fact, hot markets in Canada have been even more popular so far this year. Housing transactions in Toronto rose 52% in February from a year earlier, and the average selling price exceeded 1 million for the first time. Housing transactions in Vancouver rose 73% in February from a year earlier, with median prices reaching $1084000.
In contrast to 2019, the five-year fixed mortgage rate fell from 3.25% to less than 2% in February, an all-time low of 1.9%.
Toni Gravelle, deputy governor of the Bank of Canada, said in an interview with Reuters on Tuesday that the central bank had noticed more evidence of investor activity and found “more reselling” in some markets.
Both investors and home buyers are now worried about missing the opportunity to make money or enter the market, and this fear could also push up home prices, the vice president said.
‘The central bank is carefully studying the data and evidence to try to figure out how much of the recent market boom is due to pandemic-related demand shifts and market overheating, ‘Mr. Gravell said in an interview.
He said that in some cities such as Toronto, there is data and evidence that there is more investment activity and more resale activities than ever before. He said that the data are still limited and that it seems to be a problem for some markets at present, and it cannot be concluded that it is a problem for Canada as a whole.
Gravell also said that Canada’s red-hot real estate market has been one of the main topics discussed in regular meetings between the central bank and the federal government in recent months. “of course, as winter goes to spring, our discussion will become more and more focused on housing,” he said. “