Record High For House Prices In Canada
The average price for a house in Canada has reached a record high this November. The amount sits at $720 850 now, which is up from the record that was set back in March even. The overall increase in house prices from this time last year is sitting at 19.78%.
House prices in British Columbia top the charts at $987 352, with Ontario coming in second at $931 324. These are an increase from last year of 22.01% and 24.13% respectively. New Brunswick and Nova Scotia also saw dramatic increases in value of 22.12% and 20.77% respectively, although the actual house prices are sitting lower than the more popular states at $253 009 and $376 023 respectively.
2021 Has Bucked The Trends
2021 saw a marked increase in house sales and the average price of those properties back in March. According to the Canadian Real Estate Association, this is a normal trend in the property market. Canada usually sees an uptake in the spring and starts to decrease through the summer and almost fade away into the colder months.
This year, the trend started off as normal, but the numbers have steadily risen as 2021 has progressed. At the November – the beginning of winter – sales were up 0.6% on the previous month and had been climbing each month since March.
Overall sales for the year by the end of November had also reached an all-time high of 630 634 and there is still a month to go. 2020 had been a record year of 552 423 homes sold in the year. These figures come from the Canadian Real Estate Association’s MLS system.
High Demand Fueled By The Pandemic
In a surprising turn of events, it seems that the impact of the pandemic has fueled this high rate of sales and the increase in the average property price across the country. Usually, an economic crisis will stall such large purchases and slow the property market. However, the theory seems that lockdowns have made people want to invest in newer and better homes. As people have to spend more and more time at home, they are looking to be in a space they really like.
The demand for new homes has gone up and the interest rates have come down, making a perfect setting for property prices to climb. Additionally, there isn’t enough of a supply to match the demand.