Source – nationalpost.com
- “…Further east, activity was all over the map. It fell 17.9 per cent in Prince Edward Island, inched up 5.1 per cent in Nova Scotia and rose significantly in New Brunswick (18.8 per cent) and Newfoundland and Labrador (30.5 per cent)”
Why home prices keep climbing even though sales are falling
Not when it comes to Canadian real estate at this strange juncture in history. While some buyers may indeed be stepping away from the market with a mixture of frustration, sadness and disgust, the sales dip can largely be attributed to the lack of homes for sale.
New listings in August were 22.2 per cent lower than they were a year ago. That works out to about 18,000 fewer homes on the market — for just one month. So long as the number of houses for sale keeps shrinking, prices have only one way to go.
CREA expects prices to keep surging. In its updated Resale Housing Market Forecast, also released Wednesday, the association says a return to pre-COVID-19 normalcy, and the increased immigration that results, will “ultimately act as tailwinds for housing demand.”
It projects the average home price in Canada will reach $680,000 this year, a 19.9 per cent annual increase, before rising to around $718,000 in 2022….
Coastal cities and towns still offer some relative bargains, spurring those hoping to work from home forever to seek houses away from expensive city centres…
…New supply was down 27.3 per cent in Montreal, 23.1 per cent in Quebec City and 12.1 per cent in Gatineau. Sales in each city fell by at least 23 per cent year over year, while average prices saw double-digit gains.
Further east, activity was all over the map. It fell 17.9 per cent in Prince Edward Island, inched up 5.1 per cent in Nova Scotia and rose significantly in New Brunswick (18.8 per cent) and Newfoundland and Labrador (30.5 per cent). Canada’s sleepiest real estate markets are now the ones with the most room to grow.
Average prices in New Brunswick, Nova Scotia and P.E.I. all rose between 16.9 per cent and 18.4 per cent. The average price in Newfoundland and Labrador, which increased 7.5 per cent to $277,407, is the lowest provincial average in Canada.