Annual home sales soared to a new record in 2021, eclipsing their previous peak by about 20 per cent, the Canadian Real Estate Association (CREA) said Monday.
Updated yesterday at 3:56 p.m.
About 667,000 residential properties changed hands in 2021, which is about 30% higher than the average for the past 10 years, CREA said.
However, home sales in December were little changed from November and were associated with a particularly acute shortage of properties on the market. CREA’s senior economist, Shaun Cathcart, said the number of properties for sale in Canada has never been lower.
New listings for sale numbered 28,550 last month, down 15% from 33,606 in December 2020.
Rishi Sondhi of TD Economics said listings haven’t kept pace with sales.
“In fact, the number of newly listed homes last year was below levels that generally prevailed before the pandemic hit,” Sondhi wrote in a note to investors.
“A lack of supply could be perpetuated, as potential sellers who would normally be more active hold back their listings due to a lack of properties to turn to and intense competition for properties. available. »
The lack of available properties weighed on sales, which rose only 0.2% on a seasonally adjusted basis between November and December.
On an unadjusted basis, sales of residential properties for the month of December were 35,971, down nearly 10% from the 39,940 transactions in December 2020.
Sales fell in part because buyer fatigue set in towards the end of the year, said Cailey Heaps, a Toronto broker.
“Several buyers found the bidding situation for offers daunting and chose to put their search on hold, but have now returned with renewed interest,” she said in a statement.
Mr Sondhi thinks some of the “bush” will withdraw from sales this year as interest rates, which have fallen significantly throughout the COVID-19 pandemic, are likely to rise. However, he thinks the urge of many buyers to act now rather than later will keep sales above pre-pandemic levels.
This could mean a slight reprieve for buyers hoping to shell out less for a property.
The national average home price hit $713,500 last month, up nearly 18% from the previous December.
Excluding the Greater Vancouver and Greater Toronto areas – two of the busiest and most expensive housing markets in Canada – the national average price drops by more than $150,000.
In the Greater Toronto Area alone, the average price was over $1.1 million, up about 24% from $932,004 in the same month a year earlier.
In the Greater Vancouver area, the average price was over 1.2 million, up 15% from around 1.1 million a year earlier.
ACI found that year-over-year price gains were still between 5% and 8% in Alberta and Saskatchewan, but were around 12% in Manitoba and 30% in Ontario.
Year-over-year price growth in Greater Montreal remained at just over 20%, with the average price in December reaching $527,600, while that seen in the Quebec City market was half less important, for an average price of $303,700.
Price growth was 11% in Newfoundland and Labrador and over 30% in New Brunswick.
“With such strong demand in anticipation of higher interest rates, it is no wonder that prices continue their relentless rise,” said Sondhi.
“However, while prices are likely to rise this year, higher interest rates are expected to slow the rate of increase. »