Canadians did not allow COVID-19 or the lack of supply of homes for sale to stop them flocking to the real estate market in January, as they acquired record numbers of homes and received more payments than in previous years.
2.0% from December, the Canadian Real Estate Association (CREA) reported on Tuesday.
The increase comes as the ratio of domestic sales to new listings rose to 90.7%, its highest level on record. The previous monthly record of 81.5% was set 19 years ago.
The actual national average price of a home sold in January was $ 621,525 – another record – up 22.8% from the same month last year.
Market conditions were pushed to record levels in January because many Canadians delayed listing their homes amid the pandemic, leaving buyers with fewer options, ACI said.
“Most of the buyers and sellers who will eventually define the 2021 Canadian housing market are still waiting behind the scenes,” said Shaun Cathcart, senior economist at ACI, in a statement.
However, Cathcart believes the market is unlikely to see a surge in listings until the situation improves from a public health standpoint and winter weather gives way to spring.
“At best, many of the owner-sellers who were reluctant to enter the market last year will take action this year,” he said.
“A lot of markets really need a big surge in supply this year for people to access properties