House hunters all across Canada have slowly been migrating outwards, leaving the busy and overcrowded cities behind - seeking a more relaxed, and ultimately cheaper solution. Across the world, not just here, the housing market has been in a frenzy throughout most of 2020 and 2021.
While government stimulus and all-time low-interest rates have kept the housing industry afloat for most of the course of the pandemic - the increasing demand for bigger, and more affordable homes have left the market short-stocked. While it’s not just issues of supply and demand that’s been shaking prices, new monetary policies introduced by the Bank of Canada are contributing to these drawbacks.
Property management has become increasingly difficult in the last few months of 2021, as many families are looking to sweep up affordable and detached-homes.
Some areas have for the first time experienced double-digit year-over-year increases, while less populous regions are still maintaining a plateauing increase, but many are curious as to how long this will continue.
Let’s start from Highest to Lowest.
Ontario experienced a 28% year-over-year increase as of November 2021, one of the highest nationally. Overall, homes in Toronto are already up by 22% annually, while Ottawa’s housing market spiked by 19%. The average home climbed from $744,815 in November 2020 to $920,580 in November 2021.
Just shy of 16%, homes in British Columbia also pushed to new highs. In Vancouver, the average home price was close to $1,211,200, while smaller townhouses and condos increased by 22% and 11%, respectively. BC and Ontario have become some of the most expensive areas to purchase a new home.
The most surprising was in Yukon, which saw an average YoY increase of 24.8%. Between September 2021 and November 2021, home prices increased by 15%, ending the month with the average home price hovering close to $530,000. Rapid migration has left the market short-supplied which has helped push up prices.
Over in the east, Quebec had an annual increase of 13%, with lower sales activity closer to the end of the year. Single-family detached homes, condos, and median plex all increased by 21%, 18%, and 15%, respectively. Between November 200 and November 2021, home prices climbed by more than $58,079 on average.
Between Alberta, Saskatchewan, and Manitoba, home prices were on average relatively low. In Alberta, the average price of a single-family detached home increased by a mere 6.4%, the equivalent of $25,877.
Over in Saskatchewan and Manitoba, the housing market was relatively stable, with a modest 7% increase YoY for single-family homes in Winnipeg, and in Saskatchewan, the average home price only jumped $14,800 compared to November 2020.
Finally, the Northwest Territories were the only region where home prices have been decreasing annually, with an average dip of 15.5%. This brought the average home price down by more than $69,280. Home prices here have decreased over two months by more than 11% between September 2021 and November 2021.
Overall, we see how home prices across Canada have increased by 19% year-over-year, which led to a decrease in new home sales and transactions between November 2020 and November 2021. Future hikes from the Bank of Canada, and the increasing cost of lumber and other building materials will perhaps see these regions experience more increases as the coming year progresses.