The Teranet-National Bank HPITM has seen record growth in 2021. Canadian house prices rose 15.5% year-over-year, breaking the previous peak reached in 2016, before macroprudential measures were imposed to calm the housing market. Price growth reached an all-time high in four of the eleven cities in the index: Halifax, Hamilton, Montreal and Victoria. Although record highs were not observed in Toronto, Ottawa-Gatineau, Vancouver, Quebec City and Winnipeg, price increases in these areas were very strong on a historical basis. Calgary and Edmonton had a less spectacular 2021 on a relative basis, but still recorded their best gains since 2014. The 2021 year also ended strong in December, as the composite index experienced a seasonally adjusted monthly increase of 1.1%, a stronger increase than the 0.6% increase recorded in November. This greater increase in prices coincides with the stronger pace seen in the resale housing market. Indeed, over the past five months, sales have increased and the inventory of properties for sale has remained very low, explaining the recent acceleration in prices. Given that the inventory of properties for sale is at an all-time low, it would not be surprising to see further increases in home prices in the coming months. However, the recent increase in mortgage rates and the increase we expect in 2022 should eventually dampen this appreciation.