m city condos 5 prices.Is the Canadian economy weak? The slowdown in Canadian corporate acquisition activity in June is evidence that Canada’s economy is entering a period of weakness, according to data released by Ottawa on Thursday. But new home prices in Canada climbed to twice the rate expected in May.Please Visit: m city condos 5 prices to Get Your VVIP Registration Today!
Canada’s Ivey Purchasing managers’ Index (PMI) fell to 59.9 in June from 65.5 in May, but employment indicators changed little, indicating that Canadian inflation is still under control. According to a report by Statistics Canada, new home prices rose 0.4% in June, following a 0.3% rise in May, with Toronto-Oshawa in Ontario and Montreal rising the fastest. Benji Mintal, senior economist for world markets at Canada’s Imperial Commercial Bank (CIBC), pointed out in a report last Thursday that Canada’s housing market is likely to “bubble.” He also said a sudden collapse in the housing market was unlikely because most people thought interest rates would rise gradually and that the proportion of risky mortgage holders was small. “any national adjustment is gradual.”
In Toronto, the country’s second most expensive housing market, the average house price is about five times the average annual household income.
As long as interest rates remain at historic lows, Canadians will still be able to enjoy low-interest loans without losing their homes.
Although ultra-low interest rates will remain low for some time, forecasts such as Capital Economics suggest that if interest rates suddenly rise, home prices will fall back by 25 per cent. If interest rates rise by a few percentage points, it means that many home buyers will pay a few hundred yuan more each month.
As the overall economy grows, some expect interest rates to rise by 2.0% from next year to 2015. Such a rise in interest rates could completely cool the Canadian housing market. To make matters worse, if homeowners cannot keep up with rising interest rates, they will have to sell their homes at reduced prices.
Fitch Ratings, the Fitch rating agency, said the rise in prices in the Canadian real estate market would stop soon, predicting a “soft landing” across Canada and that house prices in Canada would be “stagnant” or “falling” over the next five years. Fitch also believes that house prices in Canada are currently overvalued, with prices in some areas overvalued by as much as 26%. According to the national average, Canadian house prices are overvalued by 21%.
According to Fitch Ratings, when a real estate “soft landing” occurs, the Canadian economy will face some risks, as many homeowners’ home loans are at the limits of their financial position and a period of interest rates begin to rise. they will be hit.
Fitch also said the slowdown in the property market would also have an impact on employment.
According to Fitch Ratings, house prices in Canada have risen by more than 130% since 2001, 80% higher than the increase in Canadian income.
Fitch International is one of the three major international rating agencies in the world, and together with Standard & Poor’s and Moody’s, it is the most authoritative credit rating agency in the world.