Canada prices continue to climb
House prices in Canada continue to grow with the Canadian Real Estate Association predicting that home values could be up by as 9.3% in 2011. This would follow significant price increases in 2009 and 2010.
And, according to the National Bank of Canada – Teranet, prices in H1 2011 were up by nearly 5% in its National House Price Index.
Richard Way, editor of Overseas Guides Company told OPP that “Canada has performed tremendously well over the last 3 years. Across the board house prices are increasing and rental yields are up with Montreal being by far the most successful with rental yields averaging 5.7% growth.”
However, the Canadian government has been intervening to try and calm things down in the market, and smooth out the growth curve. The Harmonized Sales Tax, which was implemented in Ontario and British Columbia, means that “new houses in Ontario will be subject to an additional 5% sales tax on top of the existing provincial sales tax of 8% and British Columbia will also face an additional 5% on top of its current 7% standard tax,” says Way.
“Furthermore since April 2010 Canada has had a far more stringent approach to mortgage lending making it harder for borrowers to qualify for what were once easily achieved mortgages.
