If you’re planning to sell your house in Canada quick, you will find this article interesting. We discuss the top trends in the Canadian housing market seen so far in 2017. This could help you arrive at a better decision on whether to buy a house in Canada online or to sell one.
Home prices in Canada have been rising consistently over the last 17 years, since the turn of the 21st century. There is certainly a fear that we could be in for a sharp correction in the near future. This is something that has been talked about by many property experts in Canada.
The government has tried its best to bring some rationality into the market, and to prevent property prices from rising too fast. One of the things they did was to introduce a 15 percent tax on foreign ownership of property.
The goal was to dissuade foreign investors from rushing into the real estate markets in cities such as Toronto and Vancouver, which was pushing up the home prices in double digits every year and making it impossible for ordinary Canadians to buy a home in their own country.
However, like most well thought out government interventions in the property market, even this was a failure. There has been a 10 percent increase in the average price of homes in Canada, which is now $559,317.
According to the Canadian Real Estate Association there were 7.5 per cent fewer sales in April compared to a month ago. This was despite the new rules to curb foreign investment in real estate. However, experts say that the market is finally showing signs of cooling down.
Chief economist Gregory Klump of CREA said in an interview with the CBC, "Homebuyers and sellers both reacted to the recent Ontario government policy announcement aimed at cooling housing markets in and around Toronto. It suggests these housing markets have started to cool."
Economist Robert Kavcic of Bank of Montreal notes that the housing markets in Toronto and Vancouver are in the process of cooling down following the imposition of the new tax surcharge on foreign investment in real estate.
"In a nutshell, the market looks to have moved on from last year's policy changes. Peak price growth in the region might be behind us," Mr. Kavcic said. "How much growth slows in the wake of the new measures, and how persistent it is, remains to be seen."
By foreign investors, one really means Chinese investors, as they have been on the forefront of investing in properties for sale in Canada. Wealthy Chinese investors have always considered Canada to be among their most favoured overseas property destinations, but a few have been forced to look elsewhere because of the 15 percent surcharge on foreign real estate.
This is certainly seen as a sign from the Canadian government that it does not really want them to move to Canada. This is unfortunate, as the Canadian government is one of the most liberal and pro-immigration government in the world, and has done a lot to help with the refugee situation. But they have been forced to take corrective steps to prevent the housing market in the country from getting out of hand.