canadian property market still performing strongly
News Posted On: 07 October 2011
The property market in Canada is still doing well, as prices continue to increase due to strong demand and low interest rates.
According to the Teranet National Bank of Canada prices rose by 4.52% to the year ending June 2011, but the Canadian Real Estate Association puts price growth at 9.3% year-on-year.
The highest annual increases were seen in Prince Edward Islands at 13.1% and the Yukon at 11.7%, closely followed by Ontario at 10.4% and British Columbia at 10%.
Sales are also increasing, with a 12.3% year on year increase recorded in July. Meanwhile the number of newly listed homes increased by just 1% from the previous month to give a current housing inventory of 6.1 months. This suggests a relatively balanced market.
The past year or so has seen the addition of several market calming measures in response to continuing house price rises. A harmonised sales tax was introduced in British Columbia and Ontario, increasing the price of new houses by an additional 5%, and although a recent referendum in British Columbia overturned this measure it could be many months before it is rescinded.
The Canadian housing market is predicted to remain stable for the rest of the year, with modest price rises. The average house price is expected to reach C$367,500 by the end of the year, and to rise by 1.3% next year, while housing starts are predicted to fall by 3.5%. The most expensive homes are still in British Columbia with average prices of C$491,832.
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Written by Les Calvert
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