However, from a fundamental perspective it would be naive to ignore the rate at which this country is growing, particularly in our major urban centres.” “It doesn’t mean this correction is over, far from it. “Population growth certainly helps provide a floor under housing,” said the Vancouver analyst. Steve Saretsky’s real-estate report notes Ottawa’s policies led to Canada’s population increasing by a record 700,000 year over year (compared to 250,000 in 2015). While many question the Liberal strategy in regard to unemployment, wages and housing affordability, they say it is the main thing that could keep overly vulnerable Canadian prices from crashing. Spain, Hungary and New Zealand are taking up the challenge.Ĭanada’s Liberal government, in contrast, wants to protect homeowners and the investors who snapped up many dwellings each by drastically increasing the volume of immigrants and temporary workers. The International Monetary Fund is urging policy makers to consider protections against rising mortgages. Politicians around the world feel pressure to come up with would-be rescue operations to preserve home ownership, which many voters count on for security. Average household debt in Canada, at 186 per cent of disposable income, is much heavier than in Germany or the U.S. This year the drop has already been 14 per cent across Canada.Īnother reason for the anxious exposure of Canadian homeowners is that debt levels here are among the highest in the world. Now prices are falling in nine of 18 economically advanced countries surveyed by Oxford Economics. Since 2020 overall prices are up by more than 30 per cent in Canada, the Netherlands and the U.S. One answer is: What goes up the fastest goes down the fastest. The benchmark price of all homes, including condos, in Greater Vancouver is still $1.15 million. Yet it can’t be forgotten that even with the declines of the past half year, Greater Toronto and Metro Vancouver stubbornly retain some of the most unaffordable housing in the world. Suburban Toronto prices have also been pummelled. Similarly, average values in Langley, of $1 million, reflect a plunge of about 40 per cent from the peak - even while prices in both cities remain somewhat higher than before the pandemic. The average house price in Chilliwack is now down 30 per cent, to $705,000, from its peak in February. Many can’t afford fixed rates of six to seven. Markets that spiked have a sudden cutback of buyers and investors who were seduced by mortgage rates of three per cent. Photo by NICK PROCAYLO / PNGĬentral banks around the world are raising interest rates more rapidly than in almost four decades. Real estate reality: New housing construction has also decreased, along with projections that sales and prices will steadily decline as a recession looms. Royal Bank of Canada economists predict sales in this country will plummet by 40 per cent next year. “The most vulnerable economies look to be Canada, Taiwan, Finland, and New Zealand,” says Adam Slater, Oxford’s senior analyst. Countries with the largest share of people investing in housing, such as Canada, will see the biggest impact. It blames tighter credit after the pandemic’s extremely low mortgages, which is leading to falling real-estate markets. Oxford Economics sees a global economic slump coming. Recent buyers and overstretched borrowers are in jeopardy, especially in Canada and especially the suburbs. The end of a long boom, often taken for granted, appears to be ending. And across the Salish Sea on Vancouver Island prices jumped by one quarter.īut the housing bubble is bursting - globally - in a way it hasn’t for decades. The same housing market action, among the most extreme in the world, was happening in Chilliwack, almost a two-hour drive from downtown and where values soared by 30 per cent year over year. Westcoast Homes & Design Previous Issues.Vancouver Sun Run: Sign up & event info.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |