Harbourwalk Condos.Canadian house prices have risen by another 3.5%. Although the market has expected the Bank of Canada to take a series of aggressive interest rate increases, but still can not stop the influx of Canadian home buyers into the real estate market.Please Visit: Harbourwalk Condos to Get Your VVIP Registration Today!
Benchmark home prices in Canada rose a record 3.5 per cent in February, while transaction volume rose 4.6 per cent, according to data released by the Canadian Real Estate Association (CREA) on Tuesday.
In addition, the number of new listings has also increased significantly, and it has been only 1.6 months since the surge in sales led to an all-time low in the inventory-to-sales ratio.
Earlier this month, the Bank of Canada raised benchmark interest rates for the first time in more than two years and predicted more increases in the face of soaring inflation.
Historically low interest rates superimposed demand for larger living space during the COVID-19 epidemic triggered a housing rush, making Canadian real estate one of the most burdened markets in the world. In order to ease market tensions, policy makers actively encourage the construction of new homes to supplement the shortage of housing inventory.
There are already signs in February that record high house prices and the traditional spring buying season may attract more sellers to the market. The number of new listings soared by 24% compared with the previous month. However, due to the strong demand, the ratio of sales to new listings, which measures the tight supply and demand in the property market, is still much higher than the historical normal level.
“ideally, the number of listings will continue to increase significantly in the coming months,” said Shaun Cathcart, a senior economist at the Canadian Real Estate Association. “with the rise in superimposed interest rates and house prices, we may be at a turning point where house prices are starting to slow and inventories are finally starting to pick up after seven years of decline.”