The pandemic has led many Canadian families to decide to move away from cities to suburbs in order to buy bigger homes while working from home.
According to the Canadian Real Estate Association (CREA), national home sales rose 7.2% in December 2020 setting a new record high for the Canadian housing market.
In the Greater Vancouver and the Greater Toronto area from November to December, the figure is higher than 20% in national home sales activity.
In a recent report from the Bank of Montreal, Chief Economist Douglas Porter wrote, “While much of the rest of the economy struggled with the deepest downturn of the post-war era, Canadian home sales and prices hit record highs, while starts churned out shockingly solid gains.”
Chief Economist Douglas Porter adds, “As of December, the seasonally adjusted average Canadian home price was $617,000. In contrast, the U.S. mean home price was just over US$350,000, or roughly C$420,000 (adjusted at PPP), a gap of about 46%.”
This means that currently, Canada’s average home prices are now more than 40% above the U.S. levels.
Since 2005, Canadian real estate prices have grown over 25 times faster than U.S. prices.