8 Elm Condos.House prices soared by 30%. More than 60% of Canadians believe that house prices in their cities will rise in the next six months. This is the first time since the first survey in 2008 that more than 60% of people think that house prices will rise again, indicating that most people are optimistic about house price returns and are more worried about the housing bubble.Please Visit: 8 Elm Condos to Get Your VVIP Registration Today!
Generally bullish market psychology will undoubtedly aggravate people’s misguided panic.
Both speculators and investors will worry that if they do not buy, it will be too late, thus further pushing up the market, exacerbating the housing burden of young or low-income families, further pushing up mortgage debt and increasing the risk of market collapse.
Robert Hogue, an economist at RBC Bank, believes that such missteps and panic will prompt people to make decisions that are hot-headed and bear heavy consequences for the rest of their lives, according to Bloomberg. Benjamin Tal, deputy chief economist of the Bank of China, believes that ultra-low interest rates exacerbate the deterioration of the housing market.
Not only is the Nanos poll sounding the alarm for the housing market, but the latest data also show that the housing market is increasingly on the brink of crisis.
For example, data from Statistics Canada last week showed that the month-on-month increase in new home prices across the country reached a 30-year high in February. The latest house price index of the Canadian Real Estate Association (CREA) shows that house prices across the country have risen by 17% in the past 12 months.
House prices in 12 major cities across the country have risen by more than 30%, equivalent to nearly 1% of the market. If it goes on like this, will it really double next year?
Housing prices are soaring, speculation is serious.
The reason why house prices are so skyrocketing is that mortgage interest rates fell to an all-time low last year and the cost of buying a house was low, so despite the big increase in house prices last year, the cost of buying a house only rose by nearly 2.2%, close to the recent historical average.
Second, the epidemic has forced many people to telecommute from home, driving a surge in demand for single-family homes, especially in suburbs and small towns. Third, housing supply continues to be tight, and house prices are facing upward pressure.
The rise in house prices has caused growing concern among the government and experts. The central bank governor warned in February that there were early signs of excessive popularity in the housing market.
Such a rise in house prices has also attracted more and more speculators, many of whom start with minor renovations and then quickly change hands at high prices. In this case, more and more very ordinary houses are also selling at sky-high prices.
Under such circumstances, more and more people think that house prices will continue to rise.
By contrast, only 9% of people thought house prices would rise during the outbreak last May. What is worrying is that so far there is still no sign of government intervention.
With the epidemic continuing, the economy and markets extremely unstable, and the housing boom not only adding wealth, but also boosting confidence, the government is reluctant to intervene.
In addition, the Liberal government is currently considering whether to trigger an early election, experts believe that under such circumstances, the Liberal government is unlikely to pour cold water on the housing market out of concern.