Swan lake towns . House prices will go up next year! The Canadian Real Estate Association (CREA) said on Monday that average house prices across the country are expected to rise 9.1% to 620400 yuan in 2021.
The group said prices were rising strongly due to supply shortages, particularly in Ontario and Quebec, while average prices would pick up in Alberta and sa after years of depreciation.
“current trends and the outlook for the fundamentals of the real estate market suggest that economic activity will remain healthy by 2021 and house prices in all regions will continue to rise or remain stable,” CREA said in a press release.
CREA, which represents more than 130000 real estate agents across the country, also said that national housing sales continued to maintain an all-time high in November, up 32.1 percent from November 2019. Home sales slowed in October, but the average price was 15% higher than last year.
About 511449 homes have been sold so far this year, an increase of 10.5 per cent over the first 11 months of last year.
Costa Poulopoulos, chairman of CREA, said that the national market is active, so it is possible to set a new annual sales record this year every day.
Robert Kavcic, senior economist at the Bank of Montreal, said that even if sales and housing start to fall from current high temperature levels, the housing market will remain healthy in 2021.
In a separate press release, Canadian mortgage and housing company (CMHC) reported that new housing starts rose 14.4% in November from the previous month.
On a seasonally adjusted basis, construction of 246033 homes began in all parts of Canada in November, up from 215134 in October, CMHC said.
Royce Mendes, an economist at Imperial Commercial Bank of Canada, said: “although the second wave of the new coronavirus outbreak has hit many economic dimensions, the housing market broke through the challenge and accelerated again in November.” The November figure was not only the second highest this year, but also the second highest monthly reading since 2017, exceeding market forecasts, he said.
The start of multi-family housing construction boosted growth in November. Construction of multi-family homes in the city increased by 22.5 per cent to 177661 units, while construction of detached houses fell 3.8 per cent to 55445 units, CMHC said.
It is estimated that the seasonally adjusted annual rate of new housing construction in rural areas across the country in 11 months is 12927.