House prices increase in Canada. Due to COVID-19, Canada saw a surge in housing prices in 2020. Market trend experts believe it is because many people started working from home and moved to rural and suburban areas.
The Canadian Real Estate Association (CREA) released data. It shows that Canada had a 25% year-over-year increase from February 2020 to February 2021. The average price went from $42,484 to $678,091. The most considerable percentage changes came from the Northwest Territories (48.1%), Nova Scotia (30.4%), Ontario (24.5%), Quebec (22.5%), and New Brunswick (20.9%).
The Increase of House Prices
To explain the reason why house prices are increasing in Canada, senior economist at CREA, Shaun Cathcart, said that many people live within commuting distance from their jobs. “That means that folks who own condos and smaller homes can take out built-up equity and move to a property that better meets their needs – as, over the past year, home is not only where you eat a few meals and sleep, but also the office, your kids’ school, playground, gym, etc.,” he explained.
Ontario is at the top of the list of provinces and territories with the most significant upsurge of the price difference. It had an increase of over $170,000. Northwest Territories, British Columbia, Nova Scotia, and Quebec follow the lead.
According to the data, regions like Rideau-St. Lawrence and Sarnia-Lambton in Ontario were the suburban areas that saw the most significant price changes. The average increase percentage was 50% compared to the previous year.
Cathcart noted: “With people no longer having to live within commuting distance to their jobs, as long as suburban and rural areas have decent internet, they become even more attractive to families looking for more space.”
According to him, Canadians will see sales and prices increase this year. However, he forecasts the sales will slow down in 2022, although he believes prices will remain high.