M city condos price list. The ban on overseas buyers cannot shake house prices. Canadian house prices have risen rapidly in recent years, and the average house price is almost twice that of the United States.Please Visit: M city condos price list to Get Your VVIP Registration Today!
In Canada, you can only buy a two-bedroom house in a remote city with an average price of 800000, while in the United States, you can buy a two-bedroom house in a famous seaside city with an average price of 400000. House prices in Canada have risen by 30% since 2020, making housing affordability worrying. Vancouver is already the third most unaffordable city in the world.
In February this year, the average house price in Canada reached a record 810000 6720 yuan, more than nine times the average household income. Although the average house price fell in March, it was as high as 790000 6000 yuan. Us house prices rose 27 per cent over the same period to a record 480000 yuan, a year-on-year increase of 15 per cent, according to the American association of realtors.
It can be seen that the average house price in Canada is nearly twice that of the United States. With the average house price in Canada, you can only buy a two-bedroom house in a remote area like Odessa, sa or Belleville, Ontario, while with the average house price in the United States, you can buy the same two-bedroom house in Spokane, Washington State, or Tampa, a famous seaside city in Florida.
Robert Hogue, an economist at RBC, says house prices in Canada have risen by a staggering 30% since 2020. In Vancouver and Toronto, the average family needs to deposit 10% of their income in the bank for 431 months and 340 months, respectively, to save enough for a minimum down payment for a non-apartment, according to the National Bank of Canada. Even excluding the two most expensive cities, the average cost of housing in Canada is 21 per cent higher than last year.
The shortage of housing is an important reason for the sharp rise in house prices in Canada. The Trudeau government has put an increase in housing supply at the core of its housing plan in its budget for this spring. The budget points out that Canada has built an average of about 200000 new homes a year in recent years and is committed to doubling our current construction rate over the next decade.
But the plan quickly aroused skepticism among experts. Robert Kavcic, senior economist at BMO, doesn’t think that’s going to happen. Kavcic pointed out that housing completion is now at its highest level since the 1970s, skilled labor in the construction industry is scarce, and governments at all levels will do their best to increase building density.
The most unaffordable city in Canada is Vancouver, which is getting worse because of tight supply and rising construction costs, according to a report by the Canadian Housing and loan Corporation (CMHC). The problem of unaffordable housing is expected to extend to the rental market, and the vacancy rate in Vancouver is expected to remain at around 1%.
The recent Demographia International Housing affordability Survey released by the Urban Reform Institute also shows that Vancouver is the third most unaffordable city in the world, after Sydney and Hong Kong, China.
The study compares housing affordability in different areas by comparing median house prices and household income in major markets and determining median multiples. Cities with a median of 3.0 and below are affordable housing markets, while those with a range of 3.1 to 4.0 are moderately affordable, 4.1 to 5.0 are very unaffordable, and 5.1 and above are seriously unaffordable.
The median multiple in Vancouver is as high as 13.3, which means that the median home price in Vancouver is 13.3 times the average annual income, which is even higher than the 13.0 in 2020.
Canada’s overall affordability has also deteriorated seriously. Research shows that severely unaffordable housing in Canada has spread from Vancouver to smaller markets such as Chiliwak, the Fraser Valley and Keelona, and Vancouver Island.
Toronto’s housing affordability has deteriorated sharply over the past two decades, rising from a median of 3.9 in 2004 to 10.5 now. Residents in most areas are seeking a lower cost of living, and severely unaffordable housing has spread to small markets around Ontario.
Another proposal in the budget to address housing unaffordability is a two-year ban on foreign buyers to prohibit foreign commercial enterprises and non-Canadian citizens or non-permanent residents from acquiring non-entertainment residential properties in Canada. The ban will not apply to foreign students, permanent residents, foreign workers or foreigners who buy houses as their main residence in Canada, nor will they apply to the purchase of holiday properties.
In this regard, some people in the industry believe that this new policy will be meaningless to improve the affordability of housing and increase supply, and is unlikely to affect housing prices.
REC Canada and Simeon Papailias, founder of real estate investment, believe that prices will not fall as a result, and the two-year ban will not have an impact on the fundamental lack of supply.