FILE Image: A actual estate indication that reads “For Sale” and “Marketed Above Asking” stands in front of housing in Vaughan, a suburb in Toronto, Canada, May 24, 2017. REUTERS/Mark Blinch

OTTAWA (Reuters) – Canadian residence profits jumped 7.2% in December from November, placing a new record amid surging demand in the Greater Toronto and Vancouver places, the Canadian Authentic Estate Affiliation said on Friday.

The market group explained true profits, not seasonally adjusted, rose 47.2% from a calendar year before, though the group’s Home Price tag Index was up 13.% on a calendar year-around-year basis and up 1.5% from November.

The file-breaking December capped off a report calendar year for Canadian authentic estate, with extra than 550,000 residences trading hands irrespective of the COVID-19 pandemic, which some economists and genuine estate industry experts experienced feared would direct to a housing crash.

“Despite all the problems, 2020 was a record year for Canadian resale housing activity,” Costa Poulopoulos, chair of CREA, said in a assertion, introducing that the momentum was continuing into 2021.

The sector team mentioned that the quantity of households listed for sale in Canada on Jan. 1 was the most affordable on report, which coupled with new constraints amid a surge in COVID-19 conditions and lockdowns, pointed to further more provide tightness in 2021.

“So we have record-superior need and report-small source to start the calendar year. How that plays out in the profits and value information will count on how a lot of houses grow to be accessible to buy in the months forward,” mentioned Shaun Cathcart, senior economist with CREA.

Regionally, the marketplaces with the greatest year-in excess of-calendar year selling price gains – up more than 30% – were being in smaller sized Ontario cities and cottage communities exterior of Toronto. Adopted by satellite towns close to Toronto.

Homes in British Columbia and the prairie provinces ended up up by 5% to 10% on the 12 months, with Alberta house charges gaining significantly less than 3%.

Reporting by Julie Gordon in Ottawa, further reporting by Fergal Smith in Toronto Modifying by Chizu Nomiyama and Paul Simao