A Look at the Canadian Real Estate Market in May 2021

Dated: June 16 2021

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Might things finally be returning to normal?

As the weather continues to improve and more people receive their COVID-19 vaccinations, it seems that people are getting excited for the possibility of a normal summer here in Ontario, and all across Canada.

While year-over-year activity for May was up 103.6%, we have to remember that last May had one of the lowest sales records in about 30 years. May 2020 was still near the beginning of the pandemic, and there were a lot of restrictions and lockdowns happening at the time. Additionally, a lot of people had lost jobs or were uncertain about their futures.

This year, however, activity is still high. It is just starting to moderate a bit more.

The number of home sales in Canada went down 7.4% from April, and inventory is still historically low in many areas.

The average national sale price has also dropped slightly from $696,000 to $688,000. It is a small change, but it shows some promise for buyers who were wary of the major spike in cost that happened at the beginning of this year.

The price increase has particularly slowed in Ontario, although this region also saw the greatest spike from last year to this year.

It seems that we might finally be moving beyond the need to find a bigger and better home to hunker down in and wait out the pandemic. As CREA’s Senior Economist, Shaun Cathcart, says, “[M]aybe we all finally have something else to think about other than housing and being stuck at home all the time.”

And we, for one, think that may be true. Here in Ontario, we are now in Step 1 of reopening after extensive lockdowns. We are once again starting to see the businesses around our office open their doors, and patrons filling patios to enjoy a bite in the beautiful spring weather. Everyone is excited to make plans to visit family and friends, to take some much-needed vacation time, and to get off of their screens and back into the real world.

Can we say for certain that the market will go back to normal? No.  One can never accurately predict where the market might go or what other circumstances could become a factor, even a few months to a year from now. While we do see the Canadian housing market moderating now, it is still far from where it was pre-COVID.

If you are thinking about moving, the best thing you can do is talk to your local realtor. Local markets can be so different from the national trends, and only someone who works in the industry in your area will really be able to tell you what the ebay course of action is.

Have questions about buying or selling in this market? Call 613-256-7285 and I would be happy to answer them.


Source: https://creastats.crea.ca/en-CA/

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Paul Schnittker

Almonte has been my home for many years, and I love living and working in this community. I moved from sales to Real Estate in 2016 because I wanted to help others find their dream home here in the Ot....

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