Langstaff Gateway Condos price list.House prices are 46% higher than in the United States. A new report from the Bank of Montreal highlights the severity of the Canadian economy’s dependence on the housing market.Please Visit: Langstaff Gateway Condos price list to Get Your VVIP Registration Today!
Douglas Porter, chief economist of the Bank of Montreal, found that Canada’s residential real estate industry has not been affected by the global epidemic and has a strong momentum and currently accounts for 9% of the country’s economic output. Porter points out that this is well above the historical average of about 6 per cent and twice the share of the US housing market.
So is there large-scale overbuilding in Canada? Apparently not. Porter found that the main reason why real estate accounts for such a large proportion of the economy is that people spend much more on homes than elsewhere.
Porter found that, in fact, house prices in Canada are 46% higher than in the United States, taking into account purchasing power and exchange rate factors. Porter cited a number of possible reasons for the huge gap, including Canada’s rapid population growth, slightly lower mortgage rates, and more people concentrated in the largest and most expensive cities.
But none of this seemed satisfactory, so he chose another explanation. “A more fundamental answer may be that, on balance, Canadians have made a collective choice to devote more resources to housing,” he wrote. ”
In other words, people pay more for housing out of willingness-because it’s worth it to people. If this is the case, it may have something to do with the fact that real estate has long proved to be a successful investment in Canada.
After avoiding the slump in the US housing market in 2008, many Canadians began to think that Canada’s housing market was foolproof-a profitable long-term investment in a country that continues to raise immigration levels.
In fact, even as Canada entered the blockade, confidence in the housing market soared to an all-time high in the Bloomberg-Nanos consumer confidence index. This may be related to the fact that the average resale price of a house surged 17% during 2020, to an all-time high of $607280 (3.93 million yuan). If the worst economic shock in decades cannot stop the housing market, what can?
Porter does not think that Canada’s obsession with housing must be a bad thing, just a choice for consumers.
He asked, “who can judge whether this type of consumption is better or worse than other forms of consumption?” However, he points out that this kind of consumption carries a big mark: debt. With house prices soaring, Canadians have become one of the most indebted people in the developed world.
