Houses being sold at a slowest possible rate
After the announcement made by the Finance Minister, introducing the changes while purchasing houses, the market seems to be moving at a rate which is quite insignificant for the real estate agents.
The announcement of reducing the loan amount, thereby increasing the down payment load for the buyers seems to be keeping the investors away from the market.
The present scenario
According to a real estate agent, the signs of “for Sale” are being hung on many of the houses for quite some time now.
In fact, a report suggests that in last one month’s time only 3 homes have been sold in Kitsilano. And this is supposed to be country’s most expensive city.
The scenario is not very encouraging in other areas like Greater Vancouver too. The sale of houses has gone down by 31% in compared to that in 2011.
Reachability and Affordability
The market probably has buyers but the prices are beyond their affordability range. Kitsilano, an expensive city in Canada has as many as 62 housing properties listed for sale, but the prices being too high, the buyers are taking a U turn on their decision of buying the same.
Report also suggests that the prices though have gone down in the city by as much as 0.50% or slightly more than this, yet, the market fails to attract the attention of buyers.
Same in the line is Vancouver, which shows a decline in housing prices by a little less than 4%, yet the buyers are scared to touch any housing property in this area too.
The impact on National Housing market
Experts opine that the story of “slowdown” will have a large impact on National picture of housing too. The way Vancouver has taken a downturn in the prices after it gained the same bay large percentage, the national picture will also get tarnished proportionately.
Craig Alexander, TD Chief Economist says, “The housing market correction appears to be under way, driven by a sharp downturn in Vancouver.”
He also adds that, the market should experience another round of announcements on “Mortgage Insurance regulation”. And probably this will bring in the correction and control the housing prices making them affordable by the buyers.
Housing market in the country has been experiencing one change after the other, and things are getting difficult for the buyers. The reals estate agents are also not in peace, for their business not being in a good shape.