The pandemic has changed people’s definition of home, say realtors. Many owners are selling what they own and buying something to meet different needs. (benedek/iStock)

Pandemic drives record home sales

Between November and December 2020, home sales in Canada jumped by 7.2 per cent to set another new record. Sales were particularly high in Greater Vancouver and the Greater Toronto Area where the month-over-month increase was more than 20 per cent. And for the first time, in December 2020, seasonally adjusted sale activity ran at an annualized pace over 700,000 units to reach 714,516.

“What we’ve heard from our members (realtors), is that the pandemic has caused people to change their definition of home,” said Pierre Leduc, media relations officer with the Canadian Real Estate Association (CREA). “Where a two-bedroom home or a condo may have easily fulfilled their needs for a place to eat and sleep… people now may be looking for space for a office or as their kids’ school. They may be looking for closed spaces rather than having to clear off the kitchen table.”

Where a condo may have sufficed in the past, owners may now be looking for more space for a home office or for children to use for school work. benedek/iStock)

Sales and prices increased

In December 2020, the actual national home sale activity was up 47.2 per cent year over year and the actual average sale price was up just over 17 per cent. 

“We already have record-setting sales, but we know demand is much stronger than those numbers suggest because we can see it impacting prices,” said Shaun Cathcart, CREA’s Senior Economist. “On New Year’s Day (2021) there were fewer than 100,000 residential listings on all Canadian MLS® Systems, the lowest ever based on records going back three decades.”

MLS stands for Multiple Listing Service and is a feature of the North American real estate market. It compiles listings from most real estate agents to help people and realtors with the purchase and sale of homes.

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