The Canadian property market is experiencing a surge in supply as mortgage renewals approach, according to recent reports.
Data from the Canadian Real Estate Association (CREA) shows that the number of newly listed homes in Canada increased by 7.3% in April compared to the previous month. This marks the largest monthly increase in new listings since the summer of 2018.
The rise in supply is being attributed to the upcoming mortgage renewals for many homeowners. With interest rates expected to rise, many homeowners are looking to sell their properties before their current mortgage terms expire.
In addition, the increase in supply is also being driven by the recent cooling of the housing market in major cities like Toronto and Vancouver. The introduction of stricter mortgage rules and the implementation of foreign buyer taxes have contributed to a decrease in demand, leading to a more balanced market.
However, despite the increase in supply, the average home price in Canada continues to rise. The CREA reports that the national average home price increased by 41.9% in April compared to the same time last year. This is largely due to the continued strength of the housing market in smaller cities and rural areas.
Experts predict that the surge in supply will continue in the coming months as more homeowners look to take advantage of the current market conditions. This could lead to a more balanced market and potentially slow down the rapid increase in home prices.
In conclusion, the Canadian property market is experiencing a surge in supply as mortgage renewals approach. This is being driven by a combination of factors, including rising interest rates, cooling demand in major cities, and the desire of homeowners to sell before their mortgage terms expire. While the increase in supply may help to balance the market, the average home price continues to rise, indicating that the housing market in Canada remains strong.
