Home prices rose by 0.5% in the major urban markets after seasonal adjustments in November, a stronger increase than what we observed in the two previous months. It should be noted that from June to October, price growth moderated coincidentally with a diminishing activity in the resale market. However, over the past three months, sales have increased and the inventory of properties for sale has remained very low, which explains the acceleration in prices observed in November. Given inventory at a record low, it would not be surprising to see further increases in home prices in the coming months. However, the recent rise in mortgage rates and the anticipation of more rate hikes next year should eventually put a brake on appreciations. All in all, price growth over 12 months has moderated to 15.2% for the composite index, which remains very high on a historical basis. No less than 90% of the 32 CMA’s posted increases of more than 10% over the past year, the highest proportion on record, which attests to the widespread nature of the increases in the country.

December 2021