A flurry of activity in the nation’s real estate market resulted in sales surging by 32.1% last month compared to November 2019, according to the Canadian Real Estate Association’s latest statistics.
With sales north of 11,000 in November, the median price of a Canadian home reached $603,000—the Greater Toronto and Vancouver areas, Canada’s two most expensive real estate markets, brought the national average up by $122,000. Through the first 11 months of 2020, there were 511,449 transactions recorded on the MLS, a 10.5% year-over-year increase, which fell just shy of the January-November record, set in 2016, by 0.3%.
Residential sales in the GTA rose by 23.6% last month to 8,766 from 7,090 in November 2019, but declined by 2.1% from 9,408 in October 2020. In Greater Vancouver, residential sales increased by 23% year-over-year in November to 3,131 from 2,546, but declined by 4.7% from 3,429 during the previous month. Residential sales in Montreal surged 30.8% year-over-year last month to 5,343 from 4,084, but dropped by 1.8% from 5,558 in October.
Not even the COVID-19 pandemic effectively cancelling the spring market could halt the torrid pace of national home sales this year, which CREA anticipates will set a record. The association projects 2020 will close with 544,413 home sales in Canada, which would be an 11.1% rise over 2019, with every province except Alberta registering annual increases. If the association’s estimate holds, the average price of a Canadian home will have increased by 13.1% year-over-year in 2020.
Although CREA expects a typical monthly sales cycle throughout 2021, it predicts national sales will rise by 7.2% to 584,000. However, constrained supply in Ontario could result in fewer sales next year than in 2020. Nevertheless, housing markets in every province will benefit from low-interest rates and strengthening fundamentals.
National housing starts last month also increased on a monthly basis to 231,491 units from 222,989, according to new data from the Canada Mortgage and Housing Corporation.
In Toronto, total housing starts rose by 43% to 2,913 in November from 2,037 during the same month last year, while starts in Vancouver increased by 19% year-over-year to 2,765 from 2,315. Housing starts in Montreal exploded on an annual basis to 3,091, a 72% increase from 1,797 in November 2019.
When you flip houses, you are not usually intending to live in the house; rather the strategy is to sell the property as fast as you can so as to avoid paying taxes and other expenses on the property. While there will obviously be initial costs that you will need to budget for, house flipping can be done with few resources and little experience.
For Real Estate News and Market Updates & VIP Access to Exclusive Real Estate Investment Opportunities
Canadian Real Estate Wealth Media Corp. needs the contact information you provide to us to contact you with news and market updates and to share real estate investment opportunities. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.
If you’re a newer house flipper, you have probably heard about the 70 percent rule. Here’s your guide to the investing rule that can prevent you from spending too much money on an investment.
“Sign up for our daily newsletter to get the latest news, updates and offers delivered directly to your inbox.”