Union city condos.There is more hot money in the Canadian real estate market than the epidemic. In the recent stage, COVID-19 has wreaked havoc all over the world, affecting tourism, catering, retail and manufacturing.Please Visit: Union city condos to Get Your VVIP Registration Today!
However, the Canadian real estate market, which is not seriously affected by the epidemic, is a complete landscape, emerging as a new force.
After a 15.4% year-on-year increase in January, February sales also showed positive momentum, rising 14.8% compared with January 2020, while house prices rose 15.7%, according to Toronto area housing market data.
At present, COVID-19 has little impact on the Toronto real estate market, mainly because the Toronto real estate market has not relied on foreign buyers for quite some time. It is mainly bought by locals (overseas home purchase taxes in most areas have suppressed overseas investment).
After the outbreak of the epidemic, especially after two cases broke out in Ontario, people were in a state of panic and canceled house-hunting one after another. But as the Canadian government announced that the risk of infection in the country was low, everyone felt fine, and the buyer came out again.
The loosening of government policy on the housing market is the main reason for the recovery of the Toronto housing market. The Canadian government announced that it will change the stress test policy on insured home loans from April 6 this year to make it easier for mortgage applicants to obtain loans. Not long ago, TD Bank cut interest rates across the board, and other banks followed suit, falling by an average of about 0.2%.
Interest rates fell to 2.8% in four years, at least 0.25% lower than before.
The positive interest rate policy really strengthened the affordability of buyers and diluted the impact of the epidemic on the housing market.
Some real estate agents said that since the end of last year, most of the surrounding real estate market began to improve, digesting some buyers who were suppressed from 2017 to 2018, and also digesting some buyers when the epidemic was not too serious this year. The situation has become clearer in the last month, and the market is getting hotter and hotter.
The rigid demand for investment has always existed. In the period before 2017, the Toronto housing market was so hot that the government forcibly suppressed the housing market with foreign buyer taxes. Many buyers have come to invest in nearby London, Waterloo, Niagara and Windsor. On the one hand, house prices are low, and on the other hand, potential buyers in the local real estate market are locals and new immigrants.
“the trading volume and prices in most of the surrounding real estate markets are on the rise, and the trading time is shortened. In the past, it took half a month or 10 days to close a deal, but now there are more than 20 Offer robbers, which do not need any conditions, and they will be robbed after six or seven days. Those more than 600,000 expensive houses that are more than 50000 won are difficult to digest in winter, but now they are hung for one or two weeks and sold without any conditions. This situation is very unusual because local residents will not spend so much money. ” Real estate agents said that based on the market volume and prices in the last month, there may be hot money coming in. Now it’s just speculation, there are no official figures.