The last two years has seen a boost in home sales in Canada. According to the Canadian Real Estate Association’s (CREA) latest report, this will continue to a rabid pace of 20 percent.
The surge has been due to low interest rates, and an increasingly middle-aged Millennial fuelled housing demand in Canada
While there was a drop in August by 0.5 percent compared to the previous month, the average Canadian home jumped to $663,500.
“The national average home price is forecast to rise by 19.9% on an annual basis to $680,000 in 2021, little changed from CREA’s previous forecast. This historically large increase reflects the current unprecedented imbalance of supply and demand, still close to 2 months of inventory nationally,” said the report.
The report stated that national home sales are forecast to fall by 12.1 percent to 577,000 units in 2022. This easing trend is expected to play out across Canada with buyers facing both higher prices and a lack of available supply, while at the same time the urgency to purchase a home base to ride out the pandemic continuing to fade. Still, with supply at record lows, the national average home price is forecast to rise by 5.6% on an annual basis to around $718,000 in 2022.