Arte condos. Sales hit an all-time high! The real estate boom in the Greater Toronto area continues, and housing prices remain high.
According to the latest housing market observation by the Canadian Mortgage and Housing Corporation (CMHC), overpricing and overvaluation are one of the reasons for rising house prices, which in turn makes the Canadian real estate market overheated and more vulnerable.
According to comprehensive foreign news reports, CMHC’s observation reveals a clear warning that Canadian property prices, which continue to rise, will face a serious decline in the future, and hot real estate markets in Ontario, such as Toronto and eastern Canada, are rapidly pushing the country’s real estate market to the brink of high fragility.
The report pointed out that the real estate markets in Toronto, Hamilton, Ottawa, Halifax and Moncton have been high for some time, and now, coupled with the sharp rise in house prices in Montreal, is forming a tremendous pressure; however, in contrast to Vancouver, which has always been popular, the housing market has shifted from moderately fragile to a more stable direction.
Bob Dugan, chief economist at CMHC, pointed out that the bullish outlook on strong demand and house prices caused by the epidemic may continue to make buyers in several places bullish, such signs are particularly evident in Ontario and eastern Canada, and the result is that more buyers will want to follow than wait and see for a while.
According to CMHC, home sales reached an all-time high in Canada in 2021, but both new apartments, houses for sale or rental space are falling sharply, and although housing market sales in Toronto may have slowed slightly, surging demand for housing still outstrips supply, causing prices to continue to rise at a rapid pace.
Canada’s current problems are similar to those of the United States, with low housing stocks and high demand.