Analysis of the Canadian real estate market in 2021
A record increase in prices and sales.
The Canadian Association of Realtors (CREA) calculates the MLS® HPI monthly using statistical models. An analysis of more than 15 years of data provides a benchmark of a "typical home" in each residential property category, making price comparisons across the country more accurate.
Data collected by the Canadian Association of Realtors shows that home prices in Canada are rising. And will likely continue to rise. Last year's forecast also promised higher prices, but by smaller amounts: the average home price in 2021 rose 21.1% from 2020 to $726,199 CAD. In 2020, realtors were expecting a 16.5% increase in price, not more.
Sales were up 20.7 percent from 2020. Approximately 667,000 homes and apartments were sold in 2021 — nearly 115,000 more than the previous year, which also saw record sales.
The number of new offers increased by 8.9%, but there was still a record shortage by the end of 2021: less than 70,000 offers on the market, 33% less than at the end of 2020.
The Canadian Association of Realtors calls market conditions for 2021 the toughest on record. The monthly supply has fallen to 1.6, a figure that means that at the current rate of home sales, in 1.6 months all that is currently on the market will be bought.
