March 24, 2021, by Sean MacKay
RBC Senior Economist Robert Hogue, wrote in a commentary that in the past six months the benchmark price of a Canadian single-family home has risen by $100,000. That’s a 15 percent increase in value in only half a year’s time, which ranks as the sharpest increase to the national benchmark price of all time.
Homebuyers in Barrie, an hour north of Toronto, have seen single-family home prices jump by $147,000 since August. Meantime, Fraser Valley, a region east of Vancouver that contains the small cities of Abbotsford and Chilliwack, recorded a $145,000 increase in the single-family home prices during the same period.
Vancouver and Toronto were no slouches either, with Hogue noting prices had increased $143,000 and $139,000, respectively, over the last six months.
“Clearly homebuyers continue to be a force to be reckoned with a year into the pandemic. Rock-bottom interest rates, changing housing needs and high household savings seem to have motivated many to make a move — or take the investment plunge,” Hogue wrote.
Speculation has also arrived on the heels of the steep increase in home prices, the economist said. Buyer “FOMO” — the idea a homebuyer may lose out on a property they can afford if they wait too long — is another dynamic at play in the red-hot market.
What does this mean?
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