Cielo Condos. House prices are about to plummet! In this election, the main contenders, the Conservative Party and the Liberal Party, have made “curbing housing prices” and “housing price affordability” as one of the issues on the campaign platform.Please Visit: Cielo Condos to Get Your VVIP Registration Today!
Indeed, starting in the second half of 2020, Canadian house prices seem to be on a rocket, especially in areas around traditional big cities. The younger generation in Canada is finding it much more difficult to buy a house of their own than it was 20 years ago. In the 1970s, a young man, full-time, worked for five years to save up a down payment on a house (* 20% of the average house price is calculated here). In 2021, a young man would have to work full-time for 28 years.
According to the Canadian Real Estate Association (Canadian Real Estate Association), the average house price has risen by more than 50 per cent in the past five years, and the growth rate has not slowed. Nationwide, average house prices rose 13.3% in August from a year earlier.
Now that the Liberal Party has won the general election again, the plan promised in its campaign platform to ban foreigners from buying houses for two years will be implemented. In addition, the liberals have promised to build and maintain as many as 1.4 million homes, 30 per cent more than the 1 million promised by the Conservatives. In the next few years, it is believed that a large number of houses will be put into the market to alleviate the shortage of inventory in the housing market and the situation of grabbing Offer.
A new report from the Royal Bank of Canada RBC gives a similar forecast. A total of 320000 new homes were under construction in Canada in the second quarter of 2021, the highest since 1977, RBC reported on September 27th.