Author of the article: Bloomberg News Brian Platt and Ari Altstedter Date of publication: 7 Apr 2022 • 51 minutes ago • 2 minutes reading • 91 Comments Various housing initiatives are set to be announced in the current budget, according to Bloomberg. Photo by Postmedia, archive
Content of the article
Canada will ban most foreigners from buying homes for two years and provide billions of dollars to boost construction in a bid to cool the growing real estate market.
Advertising 2
This ad has not been uploaded yet, but your article continues below.
Content of the article
The measures will be included in the budget of the Minister of Finance Chrystia Freeland on Thursday, according to a person who knows the issue, asking not to be named because the issue is private. The move signals that Prime Minister Justin Trindade is becoming more dynamic in tackling one of the most expensive housing markets in the developed world – and that the government is more concerned about the political response to inflation and rising housing costs. Home prices in Canada have risen more than 50 percent in the last two years. The market hit a record monthly high in February as buyers acted ahead of interest rates from the Bank of Canada, raising the benchmark price of a home to $ 869,300. The ban on foreign buyers will not apply to students, foreign workers or foreign nationals who are permanent residents of Canada, the man said.
Advertising 3
This ad has not been uploaded yet, but your article continues below.
Content of the article
“I do not think prices will fall as a result, although I believe it removes at least part of the competition in what is the most competitive market in the history of Canadian housing,” said Symeon Papailias, founder of the real estate investment company. REC Canada. “I do not think a two-year bandage will have an impact on the fundamental lack of supply.” Several billion dollars will be allocated to Freeland’s budget to build affordable housing and to help local governments update their systems to allow new real estate to be built faster. However, the government is planning other measures that could potentially boost demand, ostensibly to help buyers of new homes. Freeland will introduce legislation that would allow Canadians under the age of 40 to save up to $ 40,000 on a home down payment on a new vehicle that is tax-exempt, the man said.
Advertising 4
This ad has not been uploaded yet, but your article continues below.
Content of the article
During last year’s election campaign, Trinto’s party also proposed a ban on “blind bidding” on homes – the prevailing system in which bidding values are kept secret during multiple bids. Blind bidding has been blamed for accelerating price gains in a hot market, with real estate sometimes selling for hundreds of thousands of dollars above the asking price. Some believe that secret offers make every potential buyer offer as much as they can. The industrial body for the country’s real estate agents has now withdrawn from defending the practice. The Canadian Real Estate Association announced a pilot project on Wednesday to show real-time bids on real estate listed on its own listing site, realtor.ca. “Multiple bid scenarios are becoming more common in today’s real estate environment,” Michael Bourque, the union’s chief executive, said in a statement. “Canadian real estate buyers and sellers are looking for more confidence in the process.” The pilot program will start in selected markets this summer, the press release said.
Share this article on your social network
Advertising
This ad has not been uploaded yet, but your article continues below.
NP Posted
Sign up to receive daily top stories from National Post, a division of Postmedia Network Inc. By clicking the subscribe button you agree to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Thank you for your registration!
A welcome email is on its way. If you do not see it, check the junk folder. The next issue of NP Posted will be in your inbox soon. We encountered a problem with your registration. PLEASE try again
Comments
Postmedia is committed to maintaining a lively but political forum for discussion and encourages all readers to share their views on our articles. Comments may take up to an hour to monitor before appearing on the site. We ask that you retain your comments regarding and with respect. We’ve enabled email notifications — you will now receive an email if you receive a reply to your comment, an update on a comment thread that follows, or if a user follows the comments. See the Community Guidelines for more information and details on how to customize your email settings.
