November’s national benchmark price was almost $220,000 higher than it was before the pandemic. Meanwhile, November’s sales just missed the record set last year for the same month. With looming interest rate increases and continued supply shortages heading into 2022, sales are forecast to moderate somewhat next year.
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The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations.
Monthly home sales over Canadian MLS® Systems were not as volatile in 2021 as they were in 2020. That said, they were nonetheless still very unstable—similar to what was seen during the 2008-2009 financial crisis—but at a much higher level.
This volatility, ranging from a seasonally adjusted annualized high of 807,250 sales in March 2021 to a low of 585,250 sales in August 2021, then back up to around 650,000 at the time of this writing, was not the result of lockdowns or any major fluctuations in demand.
Rather, with the end-of-month supply of homes for sale setting new record-lows every month this year, it would seem the ups and downs of sales in 2021 had more to do with where and how many properties came up for sale.
When they did, the demand was there to scoop them up.