Average selling price rises to $716,585 across the country
The year is not yet over, but the Canadian Real Estate Association says 2021 was the busiest year ever for Canada's housing market, with average selling prices climbing to new highs, too.
The group that represents more than 100,000 realtors across the country said in a release on Monday that the average selling price for a home that sold on the group's Multiple Listings Service was $716,585, an increase of 18 per cent compared to the same month a year earlier.
It's not just prices that are heating up, either. Sales increased by more than eight per cent in October from September's level. The selling surge means that 581,275 homes have changed hands in the first 10 months of the year. That's already more than the previous annual record of 552,423 — and there's still two months to go.
"After a summer where it looked like housing markets might be calming down a bit, October's numbers suggest we might be moving back toward what we saw this Spring, with regards to current market demand and supply conditions," CREA chair Cliff Stevenson said.
New listings are being snapped up almost as fast as they come up, "which is why it's not surprising prices are also re-accelerating," Stevenson said. "We need to build more housing."
Low interest rates continue to fuel boom
In the early days of the COVID-19 pandemic, fear and uncertainty slowed the housing market to a crawl. But ever since the summer of 2020, Canada's real estate market has been on fire, shattering numerous records along the way.
Policy-makers at the Bank of Canada slashed interest rates to record lows to stimulate the economy, and one of the biggest impacts of that move has been to cause mortgage...
