8 elm condos.The benchmark house price is down 0.8% from last month. Soaring borrowing costs, once one of the hottest real estate markets in the world, led to a reversal in the Canadian real estate market.Please Visit: 8 elm condos to Get Your VVIP Registration Today!
On June 15th, today, data released by the Canadian Real Estate Association showed that Canadian benchmark house prices fell 0.8% from the previous month to C $822900 in May. Urban house prices in Ontario have fallen the most.
Home sales also fell sharply, down 8.6% from the previous month, the association said. Trading volume fell nearly 22% from the same period last year, and from April to May, it fell by nearly 9%.
Without seasonal adjustment, 50, 3720 properties were sold in Canada in May, compared with 60, 8598 in May 2021.
Seasonally adjusted sales totaled 40, 2649 units in May, down 8.6 per cent from 40, 6644 in April.
The association said trading volumes fell even more sharply in April, with May data similar to the level of trading activity before the start of the COVID-19 epidemic in the second half of 2019.
Judging from the property market in all regions, 3/4 of regional markets fell in May, including Lower Mainland, Calgary, Edmonton, Greater Toronto and Ottawa in BC province.
Rising mortgage interest rates have a significant impact on transaction volume. The association now estimates that the number of property transactions this year will be 560000 8288 units, down 14.7% from 2021, but still the second highest annual record in history.
It is worth mentioning that the number of new listings in May was 4.5 per cent higher than in April. The largest increase in new housing last month was in Montreal, where the number of new homes declined slightly in most districts.
Canadian house prices have soared more than 50 per cent in two years after bidding wars were launched by the real estate industry due to ultra-low interest rates and demand for more living space.
Now, as the Bank of Canada tries to rein in inflation, which is already close to 7 per cent, mortgage rates are rising rapidly, and policymakers have seen high house prices and heavily indebted mortgage lenders as the main weakness of their economy. Since early march, the bank of Canada has raised its key policy rate to 1.5 per cent from 0.25 per cent, while hinting that it may raise rates more aggressively next month.
Jill Oudil, president of the Canadian Real Estate Association, said in a statement, “May continued the situation in April, with home sales activity continuing to slow and prices softening in many parts of the country. We are in a period of rapid change, but this period should gradually lead to a more balanced housing market. “