Canada shows record high annual home sales, following 10 months of extreme activity

It looks like Canada’s housing market is getting back to its previous hot state, reporting the largest sales gain in October since the beginning of the pandemic market boom.

According to the Canadian Real Estate Association, the average price for a home sold via MLS reached $716,585 last month, marking an annual increase by 18%.

Home sales were up by 8.6% from September – it’s the biggest hike since July 2020, when Canada was recovering from its first lockdown and the real estate market was starting its record marathon.

CREA says it was the second best October in terms of sales. Benchmark prices rose by 2.7% on a monthly basis.

“Following a summer where it seemed that the market is calming down slightly, October’s results point to a possible return to spring activity with today’s market demand and supply conditions,” – Cliff Stevenson, chair of the real estate board, says.

A sharp increase in demand for larger properties, caused by the pandemic, was combined with a historic lack of supply. As a result, Canada’s real estate market became one of the hottest in the world and deteriorating affordability – a top political issue. Although Prime Minister Justin Trudeau’s government has made solving this issue a priority after re-election in September, much of the power in this case lies in the hands of local governments, thus reducing the pace with which the problem can be addressed.

While the number of new listings was up by 3.2% last month, the on-going demand growth meant Canada still had only 1.9 months of inventory, which is almost a record low number the market reached when it was at its hottest earlier in 2021.