The Design District Condos.House prices in Canada are soaring. Finance Minister Chrystia Freeland warned on Tuesday that it would take “several years” to absorb the rapid growth of the Canadian real estate market.Please Visit: The Design District Condos to Get Your VVIP Registration Today!
This is the latest information released by the Canadian Ministry of Finance, which is a direct indication of the concerns of Canadian government officials about the real estate market and looks forward to the future direction of the market.
“in addition to rising inflationary pressures, strong housing demand and limited supply throughout the outbreak have led to a sharp rise in house prices across the country,” Chrystia Freeland explained.
While some of the prices are expected to “tend” to normalize when the epidemic subsides, many of the “sharp” challenges that push up house prices need more time to absorb and digest, he added.
According to the latest news, “it will take several years of strong supply growth to solve the severe rising house price crisis in some parts of Canada, because the increase has exceeded the affordable prices of many people.”
Canadian house prices rose to an all-time high during the COVID-19 pandemic, with the national average rising 18% in October compared with the same period in 2020, according to the Canadian Real Estate Association (CREA).
In Vancouver, benchmark prices rose 1% in November from October, according to the Greater Vancouver Real Estate Board. In Toronto, its real estate board found that average house prices rose 2.5% in November to C $1.16 million, up nearly 22% from C $950000 in November 2020.
Mostafa Askari, chief economist at the Institute for Fiscal Research and Democracy at the University of Ottawa, acknowledged that housing affordability was already a “major challenge”.
“No effective solution has been found yet,” he said. ”
The federal government says it is working with provincial, regional and municipal authorities to “open and build” more housing supplies.
“the government has invested more than C $7 billion through the National Housing Strategy, which will support the construction of up to 125000 comfortable housing units and increase housing supply in Canada,” the Ministry of Finance said. ”
“addressing the issue of housing affordability is a priority for the Government.”
Askari explained that no measures taken by the government to solve the problem could produce “immediate results”, but that it was imperative to focus on increasing the stock of comfortable housing in Canada.
“increasing supply is the only thing they can do,” Askari said of the federal government.
To solve this problem, the government can provide more funds to build comfortable housing and make it easier for the private sector to ‘get royal land’ to build more comfortable housing. ”
Askari added: “but I don’t think any of these links are easy to do.”
In addition to the supply problem, there is another problem that is rapidly consuming comfortable housing’s inventory: real estate investors.
In Ontario, more than one homeowner accounted for 25 per cent of changes in property ownership between January and August 2021, according to a recent analysis by Teranet.