Of all the unexpected changes over the past year thanks to the pandemic, the housing market has been one of the most interesting. New data was just released by the Canadian Real Estate Association (CREA) that outlines the areas in the country with the most significant changes in housing prices. Some of these findings might be surprising to you.
So overall, Canada saw an increase in housing prices over the past year. This isn’t surprising, given the amount of people working from home. A senior economist at CREA put it best. When speaking to CTV News, CREA representative Shaun Cathcart explained the shift from condos and smaller homes to larger properties in the suburbs.
“Over the past year, home is not only where you eat a few meals and sleep,” Cathcart said. “But also the office, your kids’ school, playground, gym, etc.”
Of course, that shift has resulted in higher demand for properties, and thus, a price increase.
So which parts of Canada saw the biggest changes? Surprisingly, the largest year-over-year percentage change came from the Northwest Territories. This area saw a 48.1% increase in housing prices from 2020-2021. Of course, this may be because only six homes were sold in the Northwest Territories each year, so any price change can be expected to have a significant impact on averages. Following them, the CREA reports housing price increases in Nova Scotia (30.4%), Ontario (24.5%), Quebec (22.4%), and New Brunswick (20.9%).
Here are the total year-over-year increases for each province and territory:
British Columbia: +17.1%
New Brunswick: +20.9%
Nova Scotia: +30.4%
Prince Edward Island: +17.1%
Northwest Territories: +48.1%
Newfoundland and Labrador: N/A
As we mentioned, the higher demand for housing comes not in cities, but in the suburbs and rural areas. Since people don’t have to commute to work, they’re willing to pay a higher price tag for the extra space and comfort these areas provide.
So there you have it! Only time will tell us if these trends will continue into 2022. In the meantime, if you’d like to check out the interactive map from the Canadian Real Estate Association, you can do so here.