Canadian National Homes Sales in March 2021 Set Another All-Time Record

According to the Canadian Real Estate Association (CREA), Canadian national home sales set another all-time record in March 2021 as an increased supply of homes became available. CREA is reporting that national homes sales increased month-over-month basis by 5.2%. Actual (not seasonally adjusted) activity jumped 76.2% year-over-year. The number of newly listed properties rose 7.5% from February to March. The MLS® Home Price Index (HPI) rose 3.1% month-over-month and was up year-over-year by 20.1%. The national average sales price, not seasonally adjusted, year-over-year increased 31.6%. In a statement prepared for the release of the March 2021 information, Shaun Cathcart, CREA’s Senior Economist said, “We spent a lot of time over the last year talking about pent-up demand, but I think now is a good time to talk about pent-up supply, which may be the answer to the question everyone is asking right now. 2020 was the year that home became everything, so in hindsight it’s not that surprising that so many people who did not have one in which to ride out the pandemic really wanted one, while so many of those who did have a home to hunker down in were not inclined to give it up. It stands to reason then, that as the uncertainty caused and danger posed by COVID wind down, some owners who would not sell during a global pandemic will emerge with properties for sale, while at the same time some of the urgency on the demand side could dissipate. We’ll only know in the fullness of time, but March certainly did nothing to disprove the idea. That said, the third wave of COVID-19 could throw a wrench into the works of a potential supply recovery this spring.”