Langstaff Gateway Condos urbantoronto.House prices soared by 50%! The Canadian government has announced that foreigners will be banned from buying non-self-occupied properties in Canada for the next two years, in an attempt to cool the overheated real estate market.Please Visit: Langstaff Gateway Condos urbantoronto to Get Your VVIP Registration Today!
Canadian Deputy Prime Minister and Finance Minister Cristina Freeland announced this year’s federal budget on the same day, focusing on dealing with tight housing supply, insufficient housing stock and soaring house prices.
In his budget, Freeland mentioned a number of measures to curb real estate speculation and demand, including that foreigners are not allowed to buy houses in Canada for the next two years, and sellers who buy houses in less than a year will face high taxes and fees.
According to the Canadian Television Network, the above two measures do not apply to permanent residents, foreign workers and foreign students, and foreigners’ purchase of long-term self-occupied property is not restricted by the purchase ban.
Data show that house prices in Canada have soared by more than 50 per cent in the past two years, with benchmark prices reaching C $869300 (about 4.4 million yuan) per unit in February.
According to the new budget, the Canadian government is also prepared to invest billions of Canadian dollars to increase housing supply, and plans to open a “first suite tax-free savings account” to help more Canadians become “homeowners.”
The Canadian real estate market, which has been heating up rapidly in recent years, has begun to cool down. House prices across Canada fell for the first time in two years in April and then continued to fall in May. Like other countries, the turmoil in the Canadian housing market was caused by interest rate hikes by the central bank. Canada’s benchmark interest rate has risen to 1.5% from 0.25% at the beginning of the year.
Of course, this is only one of the reasons. It is reported that national housing sales in Canada fell 12.6% in April from the previous month, and the monthly activity in its real estate market reached its lowest level since the summer of 2020. Among them, about 80% of the local markets in Canada are in decline.
In response, Jill Odil, president of the Canadian Real Estate Association, also said: after several years of record-breaking growth, the housing market in many parts of Canada has cooled sharply in the past two months, which is in line with the jump in interest rates and the fatigue of buyers.
In other words, Canadian real estate has obviously insufficient purchasing power. It is reported that since the outbreak, the Bank of Canada in order to stimulate the economy, sharply cut interest rates to ultra-low levels, resulting in house prices continue to rise, so far the overall increase has been more than 50%. Under the circumstances, on March 2 this year, the Bank of Canada raised interest rates for the first time since October 2018. Another blow to Canadian real estate. Finally, it led to a persistent downturn in real estate.