2021 Real Estate Trends & Statistics
According to the Canadian Real Estate Association (CREA), the Canadian Housing Markets set record highs throughout the year 2020, according to the Canadian Real Estate Association (CREA), with national home sales set another all-time high in 2021 February.
Statistics provided by CREA showed that national property sales increased by 6.6% from January - February 2021. CREA Stats noted that:
The actual (not seasonally adjusted) activity was up 39.2% year-over-year.
The MLS® Home Price Index (HPI) jumped 3.3% month-over-month and was up 17.3% year-over-year.
The actual (not seasonally adjusted) national average sale price posted a 25% year-over-year gain in February.
Statistics provided by the Newfoundland & Labrador Association of Realtors (NLAR) showed that Newfoundland and Labrador saw record highs in 2020 and continue to surprise us during 2021! January 2020, we saw a total of 149 property sales, compared to January 2021, where sales nearly doubled to 254. We also saw the average price of homes increase by 5.6% in January 2021 to $247,846 compared to $234,805 in January 2020.
In February 2020, the average price of a home was just $229,361. This year (February 2021), we saw the opposite. The average price of a home increased from the previous month to $248,451!
What’s Driving the Real Estate Market?
While no one knows for certain, there are many driving factors to be considered. Based on NLAR’s Annual Members’ survey in 2020 of approximately 200 participants, the top sales drivers were:
Low mortgage rates, 69%
First-time home buyers, 59%
Former resident moving back to the Province, 52%
Added recreational property or cabin, 31%
It’s important to note that previous member surveys had not asked the reasons behind purchases, so it’s unclear if there is any purchasing motivation change. But comparing past housing sales in NL by year, we can see that the number of properties sold in 2020 was 5,177. The last time housing sales hit 5,000+ was in 2011, reaching approximately 5,117 in sales.
There's no doubt, though, there is certainly a demand for houses averaging around the $200,000 - $300,000 mark, as we can see by the average listing prices to date! With mortgage rates at an all-time low and the average price of homes increasing - it is a sweet spot for BOTH buyers and sellers!
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