Canadian Home Sales Soared to Record Levels in December

Canada’s housing market finished off a record-breaking 2020 on a strong note, as potential homebuyers continued to flood the market in December amid historically-low mortgage rates.

According to monthly data released by the Canadian Real Estate Association (CREA), December’s national home sales rose by 7.2% from the prior month, causing total transactions for 2020 to skyrocket to 551,392 units. As a result, benchmark home prices increased by 1.5% in the final month of the year, bringing them 13.1% above levels observed a year ago. Meanwhile, average home prices across Canada soared to a record $607,280 — the highest results for December the agency noted.

Source: CREA

With 2020 being an anomaly year as a result of the pandemic, mortgage rates sunk below 1% for the first time ever, prompting Canadians to enter the real estate market in search of cheaper and more spacious accommodations. Even despite the resurgence of Covid-19 and additional lockdowns across the country, the scarcity of housing supply will likely cause the bustling trend in real estate to continue well into the new year.

With strong housing market competition in some of the country’s largest cities, potential home buyers have been speculating that remote work policies will continue even after the pandemic. As a result, they’ve begun to flood real estate markets in the suburbs and surrounding rural areas. This has caused December benchmark prices in agricultural districts two hours away from Toronto to accelerate by more than 30% from last year’s levels.

Although there have been some price discrepancies in some regions of Canada’s housing market, there was still a vast increase in sales activity across the country. According to Bank of Montreal chief economist Doug Porter, the skyrocketing sales levels are the result of a broad shift in economic factors, rather than local changes. Specifically, the decline in interest rates, coupled with a shift in consumer preferences, has led to an increasing number of Canadians searching for houses with more room – and away from heavily populated areas.


Information for this briefing was found via CREA and Bloomberg. 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.

Video Articles

Aznalcóllar Corruption Case Nears Conclusion | David Gower – Emerita Resources

Why Precious Metals Crashed on Trump’s Trade Deals? | Jesse Day

Big Gold Miners Don’t Trust $3,300 Gold, Do They See a Crash Ahead? | Rob McEwen

Recommended

NexGen Energy Receives Approval For Site Expansion At Rook I Project

ESGold Sees Installation Of Humphrey Spirals Completed At Montauban

Related News

Canada Needs 170K New Houses Every Quarter to Supply Population Surge

At the rate the Canadian government is going, the surge in population is starting to...

Thursday, December 21, 2023, 11:21:00 AM

Canadian Home Sales Dip in August as Recent Rate Hike Spikes Affordability Concerns

Canadian home sales slumped in August as the Bank of Canada’s recent rate hike heightened...

Saturday, September 16, 2023, 01:26:00 PM

Pending US Home Sales Plummet to 2011 Levels

New home sales have taken a dive to historic lows in March, as lockdown measures...

Thursday, April 30, 2020, 12:23:00 PM

Home Sales Fall 4% As Prices Jump 6% In March, Says Real Estate Firm

Homebuyers are seemingly backing out of the market as month-on-month home sales dropped by almost...

Monday, April 18, 2022, 10:39:00 AM

Canada’s Housing Crisis: New Projections Show Increased Supply Gaps in Key Provinces

The CMHC recently updated its June 2022 Supply Gaps Estimate (SGE) report that assesses the...

Sunday, September 17, 2023, 07:18:00 AM