Canadian housing inventory grants blunder in latest signs of cooling

The Canadian housing inventory cooled down in October as a result of a decrease in British Columbia. However, there was a blunder in the figures released in September which suggested that the cooling down had begun in September.

As with the anticipation of many investors, home prices in October reduce considerably from that of September stated the Canada Mortgage and Housing Corporation.

British Columbia in comparison to other areas experienced the most slowdown in new properties with a drop in inventory of 44.9%. Vancouver had experienced its first drop after the introduction of the tax on all foreign investors.

However, there was an increase in inventory for Ontario in October of 20.0% which proves that Toronto, Canada’s largest city still remains high.

An increase in the housing prices had increased the fear in people of the hosuing market collapsing at any time but the government had done its best by putting several measures in place to put the situation under control.

According to BMO Capital Markets senior economist, Robert Kavcic explained that “suburban construction activity remains a talked about topic for Canadians. The latest improvement in October was the drop in housing prices in Vancouver, which gives investors hope that builders are responding to softer demand in houses in the area.”

A 15% extra charge on foreign investors in Vancouver has had a very positive effect on the housing prices as Vancouver has for the first time in months saw a decline in housing prices. But unfortunately for Toronto, things are on the reverse as the housing prices continues to rise.

But speaking in general terms, the hosuing market has significantly cooled down in other markets.

The drop in housing inventory mostly targeted on condos and apartments.

Statistics also show that there was a drop in the worth of Canadian building permits of 7% in September from August. A drop that has not been experienced for 8 consecutive months but this did not matchup to the figure that was anticipated by analysts who were hoping on a 5.6% drop.