bravo festival condos floor plan.Canadian housing market is afraid to welcome the”biggest bubble”!With the Canadian housing market booming,many people began to worry about a housing bubble,and some even called on the government to find a way to intervene.Please Visit:bravo festival condos floor plan to Get Your VVIP Registration Today!
Real estate agents revealed that in the past few months,many people have been forced to raise prices and grab houses in order to buy houses,sometimes by tens of thousands or even hundreds of thousands.
Since November last year,Canadian house prices have soared,and the market psychology of”if you don’t buy it is too late”has reappeared.In January,average house prices rose 22.8 per cent to an all-time high of 620000 1525 yuan.Brokers in Toronto and Vancouver revealed that they felt the peak of the bubble finally returned.
The property market statistics released by the BC Provincial Real Estate Association(BCREA)on March 11 showed that February sales increased by nearly 90%over the same period last year,and was 1000 higher than the previous month’s record set in February 2016.Property prices in MLS rose 17.3%in February compared with the same period last year.
In February,Vancouver sales were nearly 43%higher than the ten-year average,and the benchmark price was close to C$1.1 million.Sales in the greater Toronto area surged more than 50 per cent,with average house prices rising 14.9 per cent year-on-year to a record C$1045488.
The economist is David Rosenberg,famous for accurately predicting the housing crash in the United States caused by the subprime mortgage crisis 15 years ago and the founder of Rosenberg Research&Associates,a Toronto-based consulting and investment firm.
In a recent interview with BNN Bloomberg,he said that Canada’s real estate market is in a”huge bubble”,perhaps one of the biggest in history.
“of course,it depends on how mortgage rates will change,”he said.”
He said that when the labor market was severely damaged by the COVID-19 pandemic,the rise in housing prices was meaningless.”the situation we are facing is that house prices are up 18 per cent year-on-year,while wages have barely increased.”
Rosenberg also pointed out that Canada really did not experience the same extensive housing crisis as the United States experienced between 2007 and 2008.
“the unemployment rate in our country is higher than it was at the peak of the last two recessions,”Rosenberg said.Therefore,I would like to say that there are still very serious deflationary loopholes in the labour market.”
In addition to Rosenberg,policy makers at the Bank of Canada have also noted the recent rise in housing prices.
On March 10,the Bank of Canada said in its interest rate policy statement that housing transactions were”much stronger than expected”.But the central bank left its interest rates unchanged at 0.25%.
Tiff Macklem,governor of the Central Bank of Canada,said that stimulating the Canadian economy to pull out of the recession triggered by the COVID-19 epidemic as soon as possible remains the top concern of the Bank of Canada,and to this end,it is necessary to continue to implement loose monetary and interest rate policies.
On the 11th,Bank of Canada Deputy Governor Lawrence Schambre(Lawrence Schembri)said that the surge in house prices in the country is very unusual,but did not indicate whether the central bank will take any action.
Robert Kavcic,an economist at BMO,conveys similar concerns,arguing that buyers in Ontario are now”playing with fire”when house prices have become a concern.
“from 2010 to 2016,despite endless bearish comments,the Canadian real estate market still reflects interest rate and income fundamentals,”the economist wrote.”
During the 2016/17 period,the Canadian market was overheated by the influx of non-resident investment.After some actions by policy makers,the result was a price adjustment,which took nearly four years to recover.”
“and now the situation suggests that the market may be playing with fire:if mortgage rates return to pre-epidemic levels,then we will return to the market conditions of the late 1980s.”
If mortgage rates remain the same,but prices remain the same as they are now,we will return to where we were in the late 1980s by this time next year.”
At that time,the Canadian real estate market experienced a rare collapse in history,when house prices plummeted and gradually recovered after many years.
In fact,the Canadian economy has shown a trend of recovery at the dawn of the epidemic.
Statistics Canada added 259000 jobs in February,almost offsetting the jobs lost in the past two months,according to the latest figures from Statistics Canada.The unemployment rate fell to 8.2%in February,the lowest level since the outbreak in March 2020.
As for the latest unemployment rate in BC province,which fell 1.1 percentage points to 6.9%compared with January,it is the lowest in the country,but it is still higher than the 5.1%before the COVID-19 epidemic.A total of 20,6600 jobs were created in the province last month.
