Design district.House prices in Canada have soared by 14%! Canadian house prices have soared over the past year, driven by unprecedentedly low lending rates and a desire for housing triggered by the epidemic.Please Visit: Design district to Get Your VVIP Registration Today!
The Canadian Real Estate Association (CREA) said on Friday that average house prices have risen 14% over the past year, adding to concerns that the Canadian housing market is dangerously overvalued. At the same time, UBS also issued a warning about Canada’s real estate bubble.
Among the six cities with a serious real estate bubble in the world, two major cities in Canada, Toronto and Vancouver, are on the list.
CREA, an organization representing national real estate agents, says the average price of a Canadian house sold on its MLS system is C $686650, nearly 14 per cent higher than in the same month a year ago.
Canada’s inflation rate reached 4% in August, the fastest cost of living in the last 20 years. Friday’s new house price data means that house prices are rising more than three times as fast as previously recorded.
The surge in house prices is mainly due to the fact that the two most expensive cities, Toronto and Vancouver, have seriously affected average prices.
In addition, a data called house price index (HPI) in the MLS system can more accurately measure the price level of the whole market. But the data show that HPI has risen 21.5% in the past December, which is even higher than the current average.
In the Greater Toronto area, the average selling price of a house in September was C $1136280, up 18% in a year, according to the local real estate board. In addition, in Vancouver, the average selling price is C $1186100, more than a 13% increase last year.
Cliff Stevenson, chairman of CREA, said: “there is still a lot of demand waiting for the increasingly scarce number of listings, so the real estate market is still very challenging.”
The epidemic has also had an unexpected impact on house prices, because instead of making people more conservative in consumption, economic uncertainty has made people eager to buy more houses.
The Bank of Canada has also spurred the economy by slashing benchmark interest rates. When lenders pass on to consumers at historically low mortgage rates, it is undoubtedly adding fuel to the otherwise hot housing market, making people more willing to borrow money to buy homes.
In the annual ranking, UBS surveyed the housing markets of 24 major cities in Europe, North America and Asia and assessed and compared them based on factors such as house prices and local income levels.
Depressed housing market (- 1.5 or less).
The housing market is undervalued (- 0.5 to-1.5).
Reasonable housing market (- 0.5 to + 0.5).
The housing market is overvalued (+ 0.5 to + 1.5).
Real estate bubble (+ 1.5 and above).
One of these cities has a real estate bubble in the heat, and two are in Canada.
