Key Highlights
- Home prices in Canada hit new record high
- Prices increased +1.2% from the previous month and are up +11.5% over past 12 months
Canada’s housing market continues to hit record highs despite an historic setback due to the COVID-19 pandemic earlier this year. The Canadian Real Estate Association(CREA) reported that home prices climbed +1.2% in November m/m and +11.5% in the last 12 months. Coming in at an average home price of US- $510,000 and C$650,100, a record high.
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In the midst of weakened home sales in some 60% of all local Canadian markets with Toronto taking the biggest hit during October and November, the CREA projects national sales to hit a record high in 2020…a high that represents an increase of +11.1% from 2019. The CREA also projects that sales will increase +7.2% in 2021 as well.
Sales activity in November alone represented a new record. On an annual basis, Canadian home sales activity climbed +32.1%.
As in the US, the Canadian housing market is being spurred by record-low interest rates and pandemic-inspired demand for more space. Simultaneously, as in the US, inventory is extremely limited. CREA said there were just 2.4 months of for-sale supply nationwide, the lowest ever. New listings dropped even more In November by -1.6%, driving home prices and competition among buyers higher and higher.
The national sales-to-new-listing ratio remained at 74.8%. Compare this 74.8% to the country’s long-term average of 54,2% and, in some iteration of the word, what’s going on in the Canadian housing market right now makes complete sense.
Even Robert Kavcic, senior economist with the Bank of Montreal, is a bit surprised at the housing market’s strength. Kavcic said, “If anything, sales are holding up better than most would have expected.”
Thanks to Canadian Real Estate Association and HousingWire.
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