Canada’s real estate market is far from cooling off, with inventory of homes sitting at the lowest level on record.
According to the latest data from the Canadian Real Estate Association (CREA), home sales across the country rose a paltry 0.2% between November and December, as the number of transactions slumped 9.9% compared to the same period one year ago. On an annual basis, a total of 666,995 homes traded hands in December, exceeding the previous record set in 2020, and nearly 30% above the average over the last decade.
With record-high sales activity over the past year, there was only about 1.6 months worth of inventory remaining across the country at the end of last month, marking the lowest level ever. “There are currently fewer properties listed for sale in Canada than at any point on record,” said CREA senior economist Shaun Cathcart. “So unfortunately, the housing affordability problem facing the country is likely to get worse before it gets better.”
With a substantially depleted housing supply, real estate prices jumped another 2.5% last month, to mark a record 26.6% increase compared to December 2020. The benchmark home price in Canada was at $811,700, which is significantly influenced by the Greater Toronto and Vancouver areas— two of Canada’s hottest real estate markets.
Information for this briefing was found via CREA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.