Union city condos.Canadian real estate continues to cool. Home sales recorded by the Canadian Real Estate Association have fallen for six consecutive months since the Bank of Canada began raising interest rates in March, according to statistics released by the Canadian Real Estate Association on the 15th local time.Please Visit: Union city condos to Get Your VVIP Registration Today!
Home sales fell 24.7% in August 2022 compared with the same period last year. The average selling price of a Canadian house in August was about C $638000 (3.37 million yuan), down 22% since February.
Canadian real estate brokerage expert Nasma Ali (Nasma Ali) believes that people are now more cautious about entering the real estate market, not only because of interest rates, but also because of inflation, economic problems and so on.
Finally, Statistics Canada said the impairment in the Canadian real estate market, which is a drag on net worth, is likely to continue into the second half of this year.
To make matters worse, house prices in Canada are still falling and borrowing costs are expected to rise further as the Bank of Canada is likely to continue to raise interest rates because of market forecasts that in October, the Bank of Canada may raise interest rates by another 50 basis points.
Just last week, for example, the Bank of Canada raised interest rates by 75 basis points to 3.25% in an attempt to cool red-hot inflation, which has risen to its highest level in a decade, as shown in the following chart:
Since March this year, the Bank of Canada has continuously raised interest rates to cope with persistent inflation. specifically, it announced an interest rate increase of 25 basis points in March and raised the benchmark interest rate to 1.5% after announcing an interest rate increase of 50 basis points in April and June respectively. In July, it directly announced an interest rate increase of 100 basis points, raising the benchmark interest rate to 2.5%.