Fall is a cold wind blowing in the housing market in Canada. September figures from the Canadian Real Estate Association show a fall of more than 15% of home sales compared to last year. More than half of the country markets show a decrease of at least 10%. This sharp decrease is attributed to tougher mortgage rules applied by Ottawa. However, September sales exceeded those of 2.5% in August.
Despite this decline in sales prices rose by 1.1%, giving an average price of $ 355,777. Rising prices was in fact constrained by declines in Vancouver. Excluding Vancouver calculating the price increase is 3%.
Although the federal government's efforts to calm the housing market seems successful, efforts to reduce household debt are blank. The ratio of debt to income ratio of Canadian households rose to 163.4% in the second quarter, against 162% in the previous quarter. Although this increase - compared to the previous figure of 150% - the result of a change in calculation methods, the quarterly increase observed indicates that owners ignore warnings about unsustainable levels of debt. In Canada, the ratio of debt to income ratio is now higher than it was in Britain and the United States before the real estate crisis strikes in both countries.
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Monday, October 22, 2012
Posted by Daniel Katev at 3:25 AM