Record-Low Supply and Interest Rates Fuel Record October Home Prices

The average home price in Canada continued to trend higher in October, with the national average price at $480,250. Sales were up 32.1% year-over-year, setting a new record for September by a margin of 14,000 transactions. Housing inventory ticked down to 2.5 months, a fresh record low, as many households are choosing to move due to COVID-19. The Canadian housing market experienced a seller's market in October, with 18 Ontario markets under one month of inventory by the end of the month. Analysts agreed that limited housing supply is the key factor keeping the market going. Low interest rates are making it easier for first-time homebuyers and move-up buyers to jump into the market, while work-from-home is an even more powerful driver of activity due to the pandemic.