According to the Royal LePage house price survey, the average price of homes in Canada increase by 17.1 percent year-over-year to $779,000 in the fourth quarter of 2021. The real estate market in Canada has sustained another year of record prices as strong buyer demand continues to outweigh house supply in almost every market.
87% of the Royal Lepage National House Price Composite report’s markets posting double digit year-over-year aggregate price increases, while 61 percent of the markets saw a q4 price increase of at least 3%. Historically, this is highly unusual for the Canadian Real Estate market in the fourth quarter.
According the Phil Soper, president and CEO of Royal LePage “The shortage of homes available for sale or rent is one of the major social and economic challenges of our times. Policy makers at all levels of government may take comfort from 2022’s very modest improvement in the supply of available properties relative to demand, yet we see home prices rising at double-digit levels again this year.”
The housing shortage in Canada pre-existed the pandemic and with growing household formation and more newcomers to Canada adding to demand, affordability is yet again threatened.
In December 2021, ROyal LePage Canada issues it’s 2022 forecast stating that the average cost of a home in Canada is expected to rise 10.5% year-over-year.