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You might as well learn about it by comparing it with your neighbor, the United States.
New home sales prices in Canada rose for two months in a row, up sharply from the same period last year, according to data released by the Canadian Mortgage Real Estate Corporation (CMHC). The average price of a new home in Canada in April was C $751881 (US $559123), according to data. In Canadian dollars, it rose 11 per cent year-on-year; in dollar terms, the increase was more moderate, at 2.64 per cent.
At the same time, US house prices have fallen. The average price of a new home in the United States in April was C $495271 (US $368300), according to the U.S. Commerce Department’s Census Bureau (US Census Bureau). In Canadian dollars, it is down 0.49% from a year earlier; in dollar terms, it is down 3% from a year earlier.
The trend chart of house prices in US dollars between the two countries. The trend chart of house prices in US dollars between the two countries.
As a result, the average selling price of new homes in Canada is 51.8% higher than that in the United States, while in the same period last year, the average selling price of new homes in Canada was only 36% higher than that in the United States. This shows that the divergence between the Canadian and US real estate markets is intensifying.
If you take into account the differences in economic conditions between the two countries, the gap in house prices is even more unreasonable. The economy of the United States is in a state of recovery, and its population is 10 times that of Canada, but its land area is smaller than that of Canada. Canada, by contrast, is sparsely populated and its economy is unstable.