Canadian Housing Markets Set Records in February
Low mortgage rates, a lack of inventory, and a shift in preferences during the COVID-19 pandemic helped propel Canada’s housing market to yet another record month in February. Prices, as measured by the MLS Home Price Index were up a record 3.3 per cent month-over-month according to the Canadian Real Estate Association (CREA). Sales were also up a record 6.6 per cent led by the Greater Toronto Area (GTA) and other Ontario markets along with Calgary, and a number of B.C. markets. Montreal saw a slowdown as new listings fell. Compared to last year, sales jumped 39.5 per cent for the busiest February on record by a wide margin. The MLS Home Price Index is up 17.3 per cent for the biggest gain since April 2017. The largest year-over-year prices gains (more than 35 per cent) were in the Lakelands region of Ontario cottage country, Tillsonburg District and Woodstock-Ingersoll. Barrie, Niagara, Bancroft and Area, Grey-Bruce Owen Sound, Kawartha Lakes, London & St. Thomas, North Bay, Northumberland Hills, Quinte & District, Simcoe & District and Southern Georgian Bay were up between 30 and 35 per cent."The two big challenges that continue facing Canadian housing markets are the same ones we’ve been facing for months – COVID-19 and a lack of supply,” said CREA chair Costa Poulopoulos. Supply constraints did ease in February with the number of newly listed homes rebounding by 15.7 per cent, but CREA says everything that becomes available sells. The national sales-to-new listings ratio dropped to 84 per cent from 91.2 per cent in January, but is still the second-highest on record.
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