Few people would have believed it just a few weeks ago, but real estate in Canada is falling as fast as it comes. Data from the Canadian Real Estate Association (CREA) show that benchmark prices fell in June. That benchmark, a typical house, has fallen an average of nearly $1,000 a day over the past month. Almost all the victories of 2022 have been corrected, but it will still take months in this way for this new progress to turn around. Home prices in Canada fell $29,000 in June Canadian home prices fell sharply after estimates came out. The benchmark price for a home in Canada fell to $809,700 in June. That’s down 3.5% ($29,400) for the month, but still 14.9% ($105,000) more than last year. It seems like a big drop, but real estate prices are rising fast, and they’re starting to disappear. Home price growth in Canada remains high, but home prices are slowing significantly across the country. The monthly reduction of $29,400 is the largest for ACI HPI and possibly the largest since then. Annual growth is usually double, which is huge. It is also half of what it was four months ago and is going down fast. Canadian home prices almost equal income by 2022 Canadian home prices have fallen significantly from their highs, but not as part of a correction. The benchmark rate remained the same in March and was 6.7% points (-$58,400). Home prices are expected to fall by more than 10% as a result of the correction, but the numbers are difficult for many people to understand. At this rate, it will take another 8 months to recoup the gains made since the rate cut in 2020. The year started with surprisingly strong growth, which made it difficult for many prices. It changes quickly. Last month, we predicted a 2022 earnings rebound for home prices at the end of August. Losses are not expected to continue to current levels. At the current rate, the 2022 benefits may expire at the end of this month, one month earlier. But again, this is far from the change of all the money raised by the financial policy. Oh, have you heard that the price increase comes with a gift? The World Bank, BIS, disagrees – blaming global housing prices on poor monetary policy. This week’s rate hike should lead to further declines in home prices. BMO Capital Markets sent a letter to clients this morning calling the protest a boycott. According to them, a significant correction should support the level of activity seen in the market last year. As more stocks enter the market, corrections become more important.
Canada real estate woes- weekly at the rate of $7,000 fall in house prices
