It has now been eight months straight where Canada’s housing market beat the year before it. And, this is one of the craziest yet, with February having almost 40% more sales this year when compared to 2020. That’s just the tip of the iceberg though, so let’s check it out.
The monthly report from the Canadian Real Estate Association lists a few other notable trends. For example, the national average sale price is up a whopping 25% when compared with last February. Meanwhile, the MLS® Home Price Index (which tracks the cost of buying in a neighbourhood, more or less) was up 17.3% year-over-year.
Pair that with the homes sold in February (which beat the record by over 13,000 homes) and it’s clear that we’re not in Kansas anymore. One potential cause? Homeowners (with equity) seem to be more motivated to move these days, and they end up competing with first-time buyers for property.
In fact, the biggest problem right now, apparently, is a lack of supply more than anything. There are only 1.8 months of inventory left in the market, which is the lowest on record, too. Will our housing market continue to see rising prices and heightened activity through 2021? Our guess is yes, but let’s see how things shake out!
For more info, you can check out the full CREA report right here.