8 elm condos.House prices have soared 50% in two years? Canada will ban most foreigners from buying homes within two years and provide billions of dollars to stimulate construction activity in an attempt to cool the country’s soaring property market.Please Visit: 8 elm condos to Get Your VVIP Registration Today!
The measures will be included in the budget of Finance Minister Chrystia Freeland, which will be announced on Thursday, according to a person familiar with the matter.
The move shows that the Canadian government is also increasingly worried about the political backlash triggered by inflation and rising house prices. House prices in Canada have soared by more than 50% in the past two years. The market recorded a record monthly rise in February as buyers chose to buy before the Bank of Canada raised interest rates, pushing benchmark prices to C $869300 (US $693000).
The ban does not apply to students, foreign workers or foreign citizens holding permanent resident status in Canada, according to people familiar with the matter.
Simeon Papailias, founder of real estate investment firm REC Canada, said: “I don’t think house prices will fall because of this, although I do think it will at least reduce some competition in the most competitive market in Canadian real estate history.” “I don’t think two years of subsidies will have an impact on the underlying supply shortage.”
Freeland’s multibillion-dollar budget will be spent on building comfortable housing and helping local governments update their systems to speed up the construction of new buildings.
However, the government plans to take other measures that may stimulate demand, ostensibly to help new home buyers. The Freeland will introduce legislation that would allow Canadians under the age of 40 to save up to C $40 (US $31900) on down payments on their homes when buying a new duty-free car, the person said.
During last year’s campaign, Trudeau’s party also proposed banning “blind bidding” for houses-a popular system in which bids are kept secret when houses are auctioned.
Blind bidding has been blamed for accelerating price rises in the booming real estate market, sometimes hundreds of thousands of dollars higher than the asking price. Some people believe that secret bidding will force every potential buyer to bid as much as possible.
Real estate industry groups in Canada no longer defend this practice. The Canadian Real Estate Association on Wednesday announced a pilot project to display real-time real estate quotations on its listed website, Realtor.ca.
“in today’s real estate environment, multiple bids have become more and more common,” Michael Bourque, chief executive of the association, said in a statement. “Canadian real estate buyers and sellers are looking for more confidence in the process.” The pilot will be launched in some markets this summer.
