It comes as no surprise that the Canadian housing prices are also on the global spotlight as one of the world’s most expensive markets.
As it is commonly said, the number 3 is a lucky figure and the Canadian housing market does not fall short of luck because for the third time in a row, Canadian home prices have been ranked fourth place out of 55 countries as the world’s most expensive markets.
The list of countries is put together by Knight Frank, a global real estate consultancy based in London and bases it rankings on the yearly price increment obtained from national statistic offices or central banks.
Following the significant price increase of 13.5% in the Canadian housing market in the first-quarter, the market was able to maintain its fourth place in the ranking.
The most recent report highlighted that Canada was one of 11 nations to experience a double digit price improvement in the year up to March 2017; it fell behind only Iceland, Hong Kong and New Zealand.
The MLS Home Price Index improved by 19.8% in the previous year, paving the way to April, while average home prices in the market rose by 10.4% in the similar period.
Home sales across Canada’s leading housing markets, in any case, were a contrasting story.
Successful home sales which declined from the previous year were however not adjusted as the decline was also reflected across 70% of the Canadian housing market.
The decline in home deals was clearly seen in B.C’s. Lower Mainland, with Vancouver part of it, however the decrease was additionally thanks to the Greater Toronto Area (GTA), which had “blurred market activity contrasted with record levels set in April a year ago.”
Additionally, the Canadian Real Estate Association’s (CREA) report for April went on to suggests that Canadian home prices are increasing by double digits annually.
Figures compiled by Knight Frank likewise gave an insight of the final stage of the condition of Canada’s housing market prior to Ontario’s execution of its Fair Housing Plan, which incorporated a foreign investor restriction with the goal to put to an end the high market prices in the GTA market.
The steps taken brought about what TD Economics refer to as a “delicate landing” for Toronto’s housing market, with a decline of close to 30% in sales from the previous record high prices.
The decreases were to a great extent seen in detached homes, with sales dropping to 26% and a 22% drop for semi-detached homes year-over-year.
That decline was in line with the similar happenings which took place in Vancouver after B.C. imposed a restriction on foreign investors.
Financial experts from the bank’s economist project noted that home prices in the GTA are expected to experience further declines in the coming months whereas Vancouver is expected to register a 3% decline this year.