Home prices in 2021 rise nearly 20 per cent: CREA
July 30, 2021
The Canadian Real Estate Association (CREA) is forecasting Canadian average home prices will increase 19.2 per cent this year but switch to much more moderate pace in 2022, with prices rising by only 0.6 per cent.
As of June 2021, the average composite home price in Canada was $679,051—up 25.9 per cent from a year earlier.
“Activity will remain strong through 2021, resulting in a record number of sales this year despite the slowdown that began in April,” CREA said. “Over time, activity is forecast to continue returning towards more typical levels. As a result, 2022 is expected to see significantly fewer MLS transactions than in 2021.”
Removing the high-priced markets of the Greater Toronto and Vancouver areas, the average price stands at $548,208, based on May 2021 data.
There are some standout markets for price appreciation.
Based on May prices, the Lakelands region of Ontario—comprising Parry Sound, Muskoka, Haliburton and Orillia—posted an average price of $601,300. This is an increase of 48.7 per cent compared May 2020 and up 6 per cent from April 2021—the highest increase in Canada.
CREA reports that as of May 2021, the Canadian cities posting the highest price increases were: Barrie (Ontario) up 37.8 per cent to $718,800; Ottawa, up 34.4 per cent to $653,600; and Halifax-Dartmouth, up 29 per cent to $466,666.