Leftbank condos urbantoronto. House prices in Canada have fallen for the sixth time in a row. The Canadian house price index recently released by Canadian nationals shows that Canada fell 0.3% in March from the previous month, the sixth consecutive month of decline.Please Visit: Leftbank condos urbantoronto to Get Your VVIP Registration Today!
More indicative is that there have been only two March falls in the 20-year-old house price index, and the last one was in March 2009 after the subprime crisis.
ING James Knightly wrote that falling home sales, rising debt servicing costs and new mortgage regulations have all put pressure on Canada’s housing market. At the same time, the current situation also gives the Bank of Canada more reasons to maintain its current monetary policy, and the housing stimulus policy, which will not be launched until autumn at the earliest, also increases the risk that the Canadian housing market will continue to fall in the short term. Data released earlier by Huixin Canadian real estate association (CREA) learned that Canadian home sales fell 9.1% in February from the previous month, the lowest since November 2012. Now you can imagine the difficulty of selling a house in Canada.
Knightly points out that the current woe of the Canadian housing market is closely linked to higher benchmark interest rates (two rate hikes in 2018) and stricter mortgage policies. At the same time, the financial crisis of Canadian citizens is hidden behind the depression of the property market.
First, as property prices fall, homeowners (lenders) are concerned about their own financial balance. They will at least sell before the value of the house falls below the loan balance (the overall value of the property is negative). At the same time, debt-servicing costs are rising sharply as the Bank of Canada raised interest rates by 50 basis points last year, compounded by the fact that Canadian households have high debt ratios.