As per a Survey that was released, low rate of interests and good employment have offset the market slag that was caused by the widespread uncertainty of the economy that has made unit sales per month below the 10-year average which led to a very fair home price hike at the country level.
The survey collected from the property data of the proprietor in the 63 largest markets of real estate in the nation, shows that the cost of one house in Canada is increased by 1.1% year-on-year to $621,696 in 2019’s second quarter. When categorized by the type of housing, the median cost of the two-storey house increased by 1.0% year-on-year to $727,165, however the median cost of a bungalow is decreased by 0.4% year-on-year to $516,048. Condominiums stayed as the rapidly growing type of housing on a national level, with its median price increasing by 3.8% year-on-year to $452,451.
What else is worth noting?
Now there is a sustained recovery of the market in some of the largest markets of the nation, and the signs of price floor in the other areas have hit strongly by the 18 month-old housing rectification. Only in West we see that many home buyers stay on sidelines, depressing volumes of the sales and leading the prices to go down. Awed by supportive economic conditions, many adamant owners of the home in B.C. and Alberta are unwilling to let go of their real estate go for less than what they believe is a fair value, that has gone too far to protect the present home values.
The economy of Canada is seeing a substantial growth, at an unexceptional speed, with a sluggish housing market being a prime contributor for the slow movement. Offsetting this, the investment in business has catalyzed and has helped to sustain a period of ground breaking employment growth, especially in the Ontario, British Columbia and Quebec.
The trade tension remains to stress on the confidence of the consumer and housing market condition. A current detente in relation of between China and America, and stronger mid-year unexpected employment scenario has silenced a few of the US recession discussion. Although a rate deduction by the Federal Reserve is possible, the same step by the Bank of Canada is not likely to happen. Low rates in the south of border and a strong American economy will certainly have a positive effect on exports, consumer and business confidence.
What experts are predicting
Looking forward to the year end, it is expected that the national home prices will witness fairly good growth, by 0.4% as compared to end of 2018. The GTA and Greater Montreal Area are expectedly going to continue to witness a national home cost profits with forecast hike by 1.4 % and 4.5 % respectively, meanwhile Ottawa is going to outgrow the GTA with a price hike of 1.6% by the year-end. Depreciation in the Greater Vancouver market is going to continue, with the sum of home price to drop by 5.5% as compared to end of 2018. The other Western cities will also witness a decline, as housing prices in Edmonton, Calgary and Regina are going to drop by 3.6 %, 3.0 %, and 4.9 % respectively.
The improved housing affordability incentives included in the federal budget in 2019 in the month of March are not going to have much effect on the home prices. The hike in the limit of the registered retirement savings plan withdrawal from $25,000 to $35,000 are there since it was introduced. The first time home buyer incentive that is a three-year $1.25 billion shared equity mortgage program where the Canadian Housing and Mortgage Corporation is going to co-invest up to 5% of the purchase price of the present home – is expectedly going to begin from September. This going to help the young Canadians to buy a home for the first time which is closer to the urban centers.
Again, housing price hikes in the Ontario cities have greatly affected the results nationally in the second quarter of 2019, catalyzed by rise in demand from a slow first quarter, a steady employment market, and a huge influx of people in the GTA.
The sum home cost in the City of Toronto hiked by 4.3% year-on-year in the second quarter of 2019. The two-storey home prices and bungalow housing prices hiked by 2.8 % and 2.4 per % year-on-year, respectively and meanwhile the prices of the condos hiked by a significant of 7.9 % year-on-year. Therefore in the overall scenario, the sum of the home price of the GTA hiked by 2.6 per cent in same period.