With the dust settling, home prices have jumped more than 20% since last year
A new survey from the real estate firm Royal LePage shows that housing crisis in Canada for young adults is worse than previously thought. Home prices have jumped as high as 21.4 per cent since this time last year.
The Royal LePage House Price Survey, released on Friday, shows that the aggregate price of a home in Canada has risen to $749,800 in the third quarter of 2021, compared to $617,800 in the third quarter of 2020.
The survey also noted that housing sales have also slowed, largely due to waning supply and demand., Royal LePage notes.
“With easing pandemic restrictions, there was finally something to talk about other than real estate, and people began travelling and socializing again,” Phil Soper, president and CEO of Royal LePage, said in release with CTV.
“In addition, a year of relentless competition for too few properties drove some would-be purchasers to the sidelines as buyer fatigue set in. Yet their fundamental need or desire for a new home remains and we are seeing pent-up demand grow. We expect another unusually busy winter season building to a brisk 2022 spring market.”
Broken down, the average price of a single-family home rose 25.2 per cent, whereas the average price of a condo rose 13 per cent.
Per city, the biggest jumps in cost occurred in Greater Vancouver (20.8) and Ottawa (20.7). “Vancouver and the surrounding greater region remains firmly in a seller’s market,” said Randy Ryalls, general manager, Royal LePage Sterling Realty in Vancouver. “Although activity showed signs of slowing modestly in the summer and early days of September, the market has picked up again, now that families are back in their usual routines.”
The slowest rise occurred in Thunder Bay, (2 per cent), West Vancouver (3.7 per cent) and Toronto (4.8 per cent).
There's more: Royal LePage is predicting a 16% increase in home costs for the fourth quarter of 2021 when compared to last year’s fourth quarter.
“Looking back to the late spring of 2020, the Royal LePage benchmark value of a home was $580,000,” Soper said. “The subsequent ‘Covid-catalyst’ which drove legions of Canadians to upgrade their living situations, has created a period of exceptional home price growth with real estate values on track to grow 33 per cent by year end.”