TORONTO -- Canada saw a surge in housing prices over the past year due to COVID-19, a market trend experts say is caused by people working from home more often and moving to rural and suburban areas.
Data released by the Canadian Real Estate Association (CREA) shows that when comparing the average market prices from February 2020 to February 2021, Canada had a 25 per cent year-over-year increase. The average price rose from $542,484 to $678,091.
One factor is that with work-from-home even more generalized, many people dont have to live within commuting distance from their jobs, Shaun Cathcart, senior economist at CREA, told CTVNews.ca. That means that folks who own condos and smaller homes can take out built-up equity and move to a property that better meets their needs as over the past year, home is not only where you eat a few meals and sleep, but also the office, your kids school, playground, gym, etc.
The largest year-over-year percentage changes came from the Northwest Territories (48.1%), Nova Scotia (30.4%), Ontario (24.5%), Quebec (22.5%), and New Brunswick (20.9%).
Cathcart noted that the higher percentage change in Northwest Territories is likely due to the fact that in both February 2020 and February 2021, six homes were sold throughout the entire territory and the ones that were sold in 2021 were marked at a higher price.