Skip to content
aDiamondMortgage
Menu
  • Welcome
  • Mortgage
    • Purchase
    • Refinance
    • Equity
    • Reverse
    • Commercial & Alternative
  • Resource
  • About
    • Terms Of Use
    • Privacy Policy
    • Cookie Policy (CA)
  • Contact
  • Realtors
  • Application
Menu

House Prices Rise Back!

Posted on 2021-11-16
Get your complementary Pre-Approval from aDiamondMortgage, here

Average House Prices Rise Back Above $700k as Inventory Falls

Home prices continued to rise in October as housing inventory fell back to its all-time low recorded earlier in the year.

The average selling price in October was $716,585, up 18.2% year-over-year and 4.4% from September’s reading of $686,650, according to the Canadian Real Estate Association’s latest monthly report.

Removing the high-priced markets of the Greater Toronto and Vancouver areas, the average price stands at $561,585, up 17% year-over-year.

There were 57,077 home sales in October, down 11.5% from a year earlier, but up 8.6% on a monthly basis, the largest month-over-month increase since July 2020, CREA noted.

Meanwhile, housing inventory continues to be a major factor keeping prices higher, as the months of inventory measure fell back to just 1.9, a record low first reached in February of this year. The long-term average is roughly five months. New listings were up by 3.2% from September, which represents gains in about 70% of markets, CREA said.

“…I don’t think too many observers would have guessed the monthly trend would be moving up again heading into 2022,” Shaun Cathcart, CREA’s senior economist, said in a release. “A month with more new listings is what allows for more sales because those listings are mostly all still getting gobbled up; however, with demand that strong, the supply of homes for sale at any given point in time continues to shrink. It is at its lowest point on record right now, which is why it’s not surprising prices are also re-accelerating.”

October home prices from CREA

Cross-Country Roundup of Home Prices

Here’s a look at some more regional and local housing market results for October:

  • Ontario: $912,763 (+22.9%)
  • Quebec: $470,216 (+16.5%)
  • B.C.: $963,231 (+18.7%)
  • Alberta: $426,926 (+3.9%)
  • Barrie & District: $786,500 (+35.7%)
  • Halifax-Dartmouth: $485,642 (+24.7%)
  • Victoria: $871,000 (+21.9%)
  • Greater Montreal Area: $506,800 (+21%)
  • Greater Toronto Area: $1,128,600 (+24.2%)
  • Ottawa: $645,800 (+16.9%)
  • Greater Vancouver Area: $1,199,400 (+14.7%)
  • Winnipeg: $318,200 (+10.1%)
  • St. John’s: $291,500 (+7.7%)
  • Calgary: $445,600 (+9.5%)
  • Edmonton: $341,700 (+5.5%)

Prices Expected to Keep Rising Until the BoC Hikes Interest Rates

While CREA chair Cliff Stevenson noted that one month of data does not make a trend, some observers suggest the rise in prices is likely to continue until the Bank of Canada starts raising interest rates.

And that goes for a wide cross-section of the real estate market, including urban areas, smaller markets around the perimeters of metro areas and the condo segment, which is up an annualized 20% over the past three months, notes Robert Kavcic, senior economist at BMO Economics.

“The Canadian housing market is well overdue for higher rates, and momentum is still pointing upward until it gets them,” he said.

Benoit Durocher, senior economist at Desjardins, agrees that high demand is likely to keep upward pressure on prices for the time being.

“The housing market is…showing surprising resilience. Although it is too soon to tell whether the downtrend is already over, recent results suggest the presence of pent-up demand,” he wrote. “Some households may also be moving up their purchases to avoid the interest rate increases expected in the coming months.”

The prospect of higher home prices and rising interest rates could start to impact the annual inflation rate as well, Durocher noted. “Until now, the inflationary effect of home price increases was partially offset by low interest rates. This could change with the expected increase in interest rates in the coming months.”

Economists with RBC agree that buyers could be moving up their purchases ahead of interest rate hikes, and don’t see the turnaround in prices in September and October as being sustained.

“We’re unconvinced the more vigorous activity and price gains marks a change in direction for the market. We suspect it reflects a temporary uptick in demand driven by buyers rushing to land deals before interest rates rise,” wrote RBC economist Robert Hogue. “Our view remains that deteriorating affordability (arising from soaring prices or higher interest rates, or both) and easing pandemic restrictions will gradually cool demand over the coming year.”

  • Steve Huebl·Real Estate News·November 15, 2021
  • https://www.canadianmortgagetrends.com/2021/11/average-house-prices-rise-back-above-700k-as-inventory-falls/

Get your complementary Pre-Approval from aDiamondMortgage, here

Complimentary Hotel Stays Are here!!!

Would you like a complimentary hotel stay? Some locations are:

  • Bali, Indonesia – Hotel Rooms 8 days and 7 nights
  • Bangkok, Thailand – Hotel Rooms 5 days and 4 nights
  • Cabo San Lucas, Mexico – Hotel Rooms 5 days and 4 nights
  • Cancun, Mexico – Hotel Rooms 6 days and 5 nights
  • Dubai, United Arab Emirates – Hotel Rooms 5 days and 4 nights
  • Las Vegas, NV – Hotel Rooms 4 days and 3 nights
  • Phuket, Thailand – Hotel Rooms 8 days and 7 nights
  • Puerto Vallarta, Mexico – Hotel Rooms 6 days and 5 nights

We have teamed up with GiveAwayVaca.com to offer our clients and our realtor clients complimentary hotel stays around the globe. Simply complete your mortgage of any type with us and choose your location.

Please Note:
– Clients/users must pay taxes ~$35.00/night.
– All information may change without notice.

Mortgages-101

Selecting a mortgage is one of the biggest – and most stressful – financial decision made by many Canadians. But a clear understanding of a few basic terms and concepts can help allay some the anxiety. Here’s a primer on the basics of mortgages, along with insights into the current market.

  • more...MORTGAGES-101

Archives

Tags

Affordable Housing Alberta Banks BC Black Homeownership BOC Calgary Canada Canadian home prices CMHC Commercial Condo COVID COVID-19 Credit Credit & Debit Debt Default Deferrals Economist Economy Equifax Government Homebuying Homeownership House Housing Canada Inclusive Interest Rates Investment Mortgage Mortgage Tips OSFI Pre-Approval Price Private. Alternative Purchase Purchase & Down Payment Real Estate Refinance Revenue Taxpayers Toronto Underwriters Vancouver

Archives

  • October 2023
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020

Sections

  • Mortgage
  • Economy
  • Banks
  • BOC
  • Government
  • Underwriters
  • Commercial
  • Revenue
  • Investment
  • Purchase & Down Payment
  • Credit & Debt
  • Real Estate
  • Inclusive
  • Mortgage Tips
  • All News Topics
  • To Top

Tools

  • Terms of Use
  • Privacy Policy
  • Cookie Policy

About Us

  • Contact Us
  • Feedback

Follow Us

  • Facebook
  • Twitter
  • Instagram
©2023 aDiamondMortgage | Design: Newspaperly WordPress Theme
Manage Cookie Consent
We use cookies to optimize our website and our service.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}