The cost of a new home rose another 0.2% between November and December, helping boost real estate prices by the most since the 1980s.
New home prices continued their upward trend last month, amid diminishing inventories and strong demand among buyers. According to Statistics Canada, the price of a new home rose 10.3% compared to 2020, marking the biggest year-over-year increase since 1989, as prices increased across nearly all of the census metropolitan areas.
The hottest real estate market last year was the Kitchener-Cambridge-Waterloo CMA, where prices increased by a staggering 24.5% between 2020 and 2021. A record total of 7,581 homes were sold in the region last year, as an increasing number of Canadians relocated from urban city centers to suburban areas in search of more spacious and cheaper homes.
Home prices were also boosted last year as the cost of building materials skyrocketed to record-highs in January and February. Covid-19 restrictions prompted many Canadians to stay home and embark on renovation projects, further increasing the demand for lumber amid worsening supply chain issues and lumber mill shortages.
Information for this briefing was found via Statistics Canada. 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.