Vancouver, once one of the hottest real estate markets in the world, sales in Vancouver rebounded 46% in September in a sign that Canada’s most expensive home market may be confirming. repositioned after a policy-driven recession.
This is the third consecutive month the number of real estate sold increases compared to the same period last year. However, prices continued to slide: standard home prices fell 7.3% in September from the same month last year, according to the Greater Vancouver Real Estate Board.
Vancouver has been reeling from a series of government policies in place since 2016 to fix the years of constant growth that make the city the most unaffordable city on the continent.
Both Liberals and Conservatives promise to make home-buying more affordable in the current federal election campaign. Prime Minister Justin Trudeau is pledging to increase the limit on homes that qualify for 10% of government equity to nearly $ 800,000 in expensive markets like Vancouver and Toronto while the Conservative Party plans enlarge mortgage loans and reduce standard conditions.
The International Monetary Fund (IMF) said in a September 30 blog post that the policies are designed to help buyers participate in the housing market by allowing them to borrow more. tends to ultimately increase property prices and fail to improve its goal of keeping home prices at a reasonable level.
“Significant policies to improve housing affordability by increasing the ability of households to borrow can inadvertently raise home prices – ultimately leading to homebuyers,” the report said. borrowing more and leading to higher household debt ”. “Why? Because the supply of housing is fixed in the short term”.
To address housing affordability, Canada’s policymakers need a more comprehensive policy to tackle the supply, such as making the approval process faster and more transparent, the IMF said. and building more houses that just rent out.
Housing prices in Toronto hit a new record as sales soared 42.3% in September
Demand for detached houses helped propel another month with double-digit sales and record dumping prices in Canada’s largest housing market in September.
Total home sales across the Greater Toronto Area grew 42.3% year-on-year to a new record in September when 11,083 properties were traded last month, according to data compiled by the Commission. Toronto Area Real Estate (TRREB) announced Tuesday.
Detached homes accounted for more than half of sales with 5,559 units recorded for the month, up 55% year-on-year. Meanwhile, apartment activities slowed down when sales increased 14.6% year on year.
Median selling prices for all homes rose 14% year-on-year to $ 960,772 – marking the fourth consecutive month of record average prices in the GTA region after previous all-time highs That was $ 951.404 recorded in August.
“Improvements in economic conditions and extremely low borrowing costs have maintained sales at record levels in September, as we continue to take into account the significant amount of demand that has been compressed by a recession in the spring.
However, it is important to monitor the trajectory of COVID-19 cases, the relevant government policy responses and the impact on consumer employment and confidence, ”said the chairman of the Real Estate Commission. Toronto TRREB real estate Lisa Patel said in a statement.
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