Housing market in Canada does not seem to be bringing any good news to the buyers
. There are many who have been waiting to get a little piece of good news from some corner or the other, but the worse is not getting over even with time.
Royal Bank of Canada has reported a rise in the housing prices and even in the mortgage rates in the second quarter of the year, making things unaffordable for the buyers yet. Home resale has fallen in May and June of this year.
A report prepared by the Canadian Real Estate Association shows that average home prices have fallen by 2% on an annual basis.
The downfall in the home prices do not seem to be recovering in the days or monthsto come. Experts predict that the prices would fall even further by another 5-15% in a period of 3years or so to come.
The low demand of the houses due to unaffordability of the buyer ha salsa led to a decline in construction activity by 2.5%. This fall has been reported in the beginning of this month.
In fact, people are expecting further downfalls due to changes in the mortgage rules. The new change of decreasing the mortgage period from 30 to 25 years and loan amount has been decreased from 85% to 80% has a major role to play in the sliding down prices.
As an act of rolling up the sleeve the banks have increased the mortgage rates making things even more difficult for the buyer. Increased rate of interest on mortgages will all the more be painful for the buyers.
Amid all this refinancing options have become quite narrow, so those who already own a house and want to get it refinanced are facing another set of challenges. Thy feel stuck with the turmoil in the housing market, they are neither able to come out of it nor are able to cope up with the changes.
Different provinces have their own set of stories on Housing market. Vancouver seems to be the least affordable city of Canada in terms of housing market as the prices are too high to be afforded by people.
As it is Toronto has been one of the expensive cities of the nation, even here too people are not able to reach anywhere near the sky touching prices of homes.
Montreal and Alberta have shown some improvements in compared to the other parts of the country. However, Saskatchewan and Manitoba follow the trend of the rest of the nation as the housing prices are again not affordable by the buyers.
There is a concern from all the corners about the rising prices and their unaffordability by people. However, everyone seems to be stuck in turmoil of changes in the Mortgage rules and the slow performing economy of the nation.