Real Estate in Canada Cooled Due to High Prices, Government Measures
A survey was conducted on Friday by Royal LePage House Price in which it came to light that home prices in Real Estate in Canada rose by 6.2% over the year in 1st quarter of 2018. But quarterly comparison showed less rosy picture, with home prices around Canada that remained seeing dips in prices, according to the survey.
Average price of a Canadian home was around C$605,512 in the very 1st quarter, as per reports, which is compiled from a data from 63 of largest real estate markets of Canada.
Condos saw a very biggest rise by 10.3% to C$418,245, while median price of a 2 story home rose by 5.7% over a year to nearly C$715,726 and bungalows climbed up by 4.5% to C$501,985.
Report didn’t look at all of these luxury numbers separately.
Phil Soper, CEO and President of Royal LePage said that they are experiencing a very broad-based and residential housing correction that were triggered by provincial and federal interventions in Canada. “Strong gain of house price in first half of year 2017 mask some recent market shifts while comparing home value trends.”
As per reports by Royal LePage, new mortgage rules were into effect in January, so potential home borrowers in Real Estate in Canada are subject to increase scrutiny to make sure that they may keep up with all of their payments if there is an increase in interest rates.
As per a report from Canadian Real Estate Association on Friday, march saw a drop of 22.7% in number of sold homes. This is the lowest number in 4 years, group said, and 7% below 10-year average. Additionally, price of average home was down by 10.4% as comparative to the same month of last year.
Toronto Turns into Favor of Home Buyers
Slowing price gain and sluggish sales activity in Toronto Area contributed to the very 1st quarter dip in national real estate market, said Royal LePage. In a different report, aggregate price of a Toronto home decreased by 2.2% with a bungalows down by 2.1% and 2 story homes down by nearly 2.4%. Even condos also dipped by 1.3%.
Home price in Toronto grew by 3.1% to nearly C$802,252, with gain in all type of housing.