Canadian Home Sales and Prices
Canada is a country that is present in the Northern part of North America. The ten provinces and 3 territories of the country extend from the Atlantic to the Pacific Ocean and northward into the Arctic Ocean. By the total area, Canada is the second-largest country in this world with a total population of 9.98 million individuals.
The country did not let pandemic (COVID-19) or lack of housing supply to slow down the growth of real estate market in January 2020 as the country stole a record number of houses and attacked with a great force as compared to previous years. Homes sales for the month were high up to 35.2% as compared to a year earlier and this sale during the 1st month of the year was 2% higher as compared to last month of the year.
Average Home Sale Price:
According to Canadian Real Estate Association, the average home sold price was $621,525 in January and this figure is 22.8% higher from the same month during the last year. CREA mentioned that market conditions were forced to record levels in January as many people have avoided putting their houses for sale in the middle of a pandemic.
According to Shaun Cathcart who is a senior economist of CREA in his recent statement “ The sellers and buyers that will in time explain the housing story of Canada of 2021 are most of them all still waiting in wings”.
A real estate group says that the average housing sale price will extend up to $620K in the coming year. Different types of houses have different home sale prices. Single-family house prices rose 2.6% monthly and robust 17.4% yearly while the increase in apartment prices was comparatively less than 0.2 % monthly and decreased 3.3% yearly, said TD Economics in a statement after a report released by CREA.
High Demand of Home Supplies:
Cathcart believes that the market is unlikely going to see a rush in the number of listings until there is an improvement in the public health situation and the uninteresting winter season subsides. He said that the best case framework would be if there are a lot of sellers who were hesitant to engage in the market last year making a move this year.
With new supply falling and sales edging higher in January, national sales to new listings ratio strengthened to 90.7% which is the highest level on record for measure by significant level. Last month’s record was 81.5%, set almost 19 years ago. The national sales to new listings ratio are 53.4%.
Canada’s Most Active Markets:
CREA represents that the Greater Toronto and Greater Vancouver area are the most active and expensive markets and these markets were heating up more rapidly in January. The average seasonal price of a house in GTA was $941,100 and in Vancouver, this price was just more than $1 million.
The average house price in Canada hit almost $607,250 in October and this figure is 15% high in the past year. From the $621,525 national average price, when data was removed by both of the regions, it is also found that this average price was slashed by almost $129,000.
Demand of Cities Outside Toronto:
CREA demonstrates that year-over-year price rises between 25 and 30% were seen in so many regions in Ontario which includes Niagara, Huron Perth, Barrie, Grey-Bruce Owen Sound, London, Kawartha Lakes, Southern Georgian Bay, and Simcoe. However, over 30 percent of its largest year-over-year gains were recorded in the Lakelands region of the Ontario Cottage, Quinte, Northumberland Hills, Woodstock-Ingersoll, and Tillsonburg District.
Lai said that pandemic and urban sprawl are responsible for this phenomenon. She further said that people like to be outside of the city, they like to have their own houses and they also don’t want to be in elevators.
Other Attractive Cities of Country:
As many people in the country are working from homes the downtown core may be less attractive for young professionals and couples are trying to snatch up houses there and also bidding wars on the condominiums are plentiful.
CREA said that gains in January price were in the 10 to 15 % range in GTA, Chilliwack, B.C, Mississauga, Winnipeg, the Okanagan Valley in B.C, and on Vancouver Island.
Average prices of Montreal reached almost $434,200 and this figure is 16.6% higher as compared to last January. They rose by almost 10% in Great Vancouver, Regina, Saskatoon, and Victoria and almost 2 % in Edmonton and Calgary.