The country's house prices increased by more than 25 per cent last month, compared to November of 2020 - a significant increase spurred by historically low supply shortages.
Even with a rising number of properties for sale from October to November, it wasn't even close to satisfying the surging demand, according to new data from the Canadian Real Estate Association. The benchmark sale price rose to $790,600 last month.
“The supply issues we faced going into 2020, which became much worse heading into 2021, are even tighter as we move into 2022,” explained the real estate board’s chief economist Shaun Cathcart, in a news release. “As such, the issue of inequality in the housing space will remain top of mind.”
Incredibly low mortgage rates coupled with a desire for larger living spaces during the pandemic resulted in the country having one of the most heated housing markets in the world. With the central bank signaling that interest rates are likely to rise next year and a renewed flow of immigration into Canada, buyers have discovered new and increased incentives to get into the market.
300,000 new homes began construction in November, one of the strongest months on record and a welcomed sign that builders and developers are answering to the housing shortage.
Justin Trudeau's campaign to re-election in September promised an increased focus on homebuilding. Though the bulk of the decision making that pushes development relies on the authority of local and provincial governments.
Forecasts which accompanied the November sales data, had the real estate association predicting that prices would keep rising next year.