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Listings shortages will weaken affordability in Canadian markets: CREA

The Canadian Real Estate Association (CREA) recently released national sales statistics for December of 2021.


“With the housing supply issues facing the country having only gotten worse to start 2022, take any decline in sales early in the year with a grain of salt because the demand hasn’t gone away, there just won’t be much to buy until a little later in this spring,” said Cliff Stevenson, Chair of CREA. “But when those listings eventually start to show up, the spring market this year will almost certainly be another headline grabber,” continued Stevenson. 


“There are currently fewer properties listed for sale in Canada than at any point on record,” said Shaun Cathcart, CREA’s Senior Economist. “So, unfortunately, the housing affordability problem facing the country is likely to get worse before it gets better. Policymakers are starting to say the right things, but now they have to act to change this course we’re on. An aggressive national push to build more homes is what will address the issue, but it will probably have to be a greater amount of building than anything we’ve ever undertaken. A touch over the status quo won’t cut it.” 


 

 Highlights of CREA's report

•             National home sales inched up 0.2% on a month-over-month basis in December.

•             Actual (not seasonally adjusted) monthly activity came in 9.9% below the record posted in December 2020.

•             The number of newly listed properties fell 3.2% from November to December.

•             The MLS® Home Price Index (MLS® HPI) rose 2.5% month-over-month and was up a record 26.6% year-over-year.

•             The actual (not seasonally adjusted) national average sale price posted a 17.7% year-over-year gain in December.


Read the entire report on Canadian MLS® sales for December of 2021.

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