Canada is known to be an elite and good to live in country around the world – but it is not necessary for middle and lower income based residents who could feel proud to be part of Canada.
Knight Frank,a UK based real estate consultant, says that Home Prices in Canada have been increased by 10% except two counties in the world i.e Turkey and New Zealand.
Whereas prices in Chile have been increased by 9.4%, prices in Sweden jumped to 8.9%. As per stats prices in different countries also hiked like Austria, prices jumped to 8.1%, Malta (8.8%), Mexico (8%), Germany (7.9%) and Iceland (8.1%).
A researcher Kate Everett-Allen, said that due to continuous period of low interest rates is the main reason behind instant hike in Canada house pricing. Merrill Lynch, a Bank of America noticed that interest rates in Canada is lower than America as they have been in 5000 Years.
Governor Stephen Poloz announced in July that interest rates wouldn’t change, so after this announcement Bank of Canada made benchmark interest rate at 0.5 percent.
Knight Frank picked up numbers by doing analyzes of Central Bank and Government data around the world. After analyzing data, Knight Frank released “ Prime Global Cities Index” which was being used to measure the growth of house market prices in top five per cent of various cities.
No other cities in Canada came in list of hike in house prices except Toronto and Vancouver. Vancouver jumped with hike in price by 36.4 percent, whereas prices in Toronto increased by 12.6 percent.
It also came into light that Vancouver is going to join a group of world best cities including Sydney, Hong Kong and Melbourne, which is going to control foreign investments in efforts to improve affordability.
As per Statistics in Canada, in boom markets of Toronto and Vancouver, Canadian home prices grew up at faster track in May jumping at 0.7 per cent from April. Analysts announced to pay 0.2 percent in advance. This announcement created difficulties in path of purchasers.
The Liberal Government is very much taking interest about continuous hiking in prices in Toronto and Vancouver to figure out more restrictions on mortgages.Toronto and Oshawa account for 27.92 per cent of whole Canadian Market, it is the highest in 27 Years.
Condition in real estate market helped to grew up new home prices in Vancouver by 1.1 per cent.Overall, from may 2015 the house prices jumped by 2.7 per cent, it is largest rise seen since 2010.
Housing in Vancouver is bubble bursting, and as per updates when showed 2 weeks ago average property pricing in Vancouver crashed and dropped by 17% on the month, and on the year it’s 0.6%, to C$1.47 million ($1.13 million) in August, it is the lowest price since September 2015.
As per latest data from Sotheby’s International Realty, the transactions in Vancouver of C$1 million i.e $759,000 has been fallen to 65% from a year as comparatively in August which was recorded as 95%.