September and October were no flukes. Home prices reaccelerated further in November in Canada\u2019s major markets amid continuing strong demand and scarce inventories across Canada. Early reports from real estate boards showed the temperature generally rising once again with home resales holding at historically high levels last month. And where resales inched slightly lower (like in the Fraser Valley) or were rather static (like in Toronto), it was largely due to a lack of supply\u2014not softening demand. Trends over the past three months marked a departure from the broad cooling that took place in the spring and summer. Yet we remain unconvinced we\u2019re witnessing the start of another leg up in the market\u2019s unprecedented run. We believe much of the recent impetus in the market came from buyers front-running interest rate increases. This is usually a short-lived phenomenon. We expect the current verve to fade in the coming months, followed by a gradual moderation. Our view remains that deteriorating affordability (arising from soaring prices or higher interest rates, or both) and easing pandemic restrictions will gradually cool demand in 2022. We expect extremely tight demand-supply conditions will keep prices under intense upward pressure in the near term though we see such pressure easing significantly by the second half of 2022 as markets achieve a better balance.\n<\/p>\n