Mila towns . House prices rose to record levels. After the frenzy of 2020, the pace of home purchases in Toronto has weakened, but prices continue to rise.
Experts point out that there is still an extreme imbalance between supply and demand in the market, and that there is no solution for the major political parties, and that house prices are expected to continue to rise.
Anyone looking for a house knows that unless you want to live in a dilapidated house, it is difficult to find a decent house that costs less than 1 million yuan.
A new report from Zoocasa shows that across Canada, home sales fell 0.5% in August from July and 14% from the hot summer market in 2020, but it was still the second-best August in real estate transaction history, according to BlogTo.
Sean Shaun Cathcart, senior economist at Real Estate Canada, said: “the Canadian real estate market seems to be stable somewhere between the pre-pandemic and the pandemic peak-that is, it is still extremely unbalanced.”
Benchmark house prices for the entire GTA rose 17.3 per cent year-on-year to $1059300, according to the report. The main factor behind the rise in prices is the lack of housing in the market.
“buyers in Greater Toronto continue to face the challenge of severe supply shortages,” the report said. ”
The number of new homes on the market fell 42.6% in August, with 12255 homes on the market. This led to a 2.7 per cent drop in sales in July and a 20.2 per cent drop in sales compared with the same period in 2020, as 8579 homes changed hands, Zoocasa said.
If you are considering waiting for prices to fall, Real Estate Canada believes that prices will continue to rise.
Despite the bold promises made by politicians in the federal elections, there seems to be no immediate solution.
“the August figures provide more evidence that many of us already know or suspect that the housing crisis will not go away on its own,” said Clive Stevenson, chairman of the Canadian Real Estate Board.
It is therefore encouraging that all major political parties are looking for a long-term solution to a problem that has existed for some time. It also highlights that there is no quick solution, so the market is still challenging for buyers or those who have to participate. ”
With the increase in vaccination rates, the opening up of the economy and the rebound of immigration, house prices are expected to continue to rise. Real estate Canada predicts that sales will reach a record of 656300 transactions by the end of 2021, an increase of 18.8 per cent over 2020.
By contrast, sales will decline in 2022, mainly because inventories are at an all-time low. Real estate Canada forecasts 577000 transactions and an average price of 718000 yuan, an increase of 5.6 per cent over 2021.