Homebuyers were still clearly on the hunt for their dream house\u2014or any house\u2014in Canada’s major markets last month. Competition for the few available units was not only fierce but increasingly driven by a sense of urgency or ‘fear of missing out’. Home resales stayed sky-high, rising more than 50% y\/y in the majority of markets where local real estate boards have so far reported (including increases of 108% in the Fraser Valley, 73% in Vancouver, 54% in Calgary and 53% in Toronto). Resales fell in the Montreal area (down 3% y\/y) though this was largely because supply was lacking. Big-city buyers warmed up to condos though this, too, is partly a supply story\u2014it’s much easier to find one for sale than a single-detached home. Some of those condo buyers likely include investors anticipating an eventual turnaround in the rental market. While it’s natural tight demand-supply conditions heat up property values, signs of overheating have emerged. The increase in the single-family home price index is 20% y\/y or more in Ottawa, Montreal, Toronto, the Fraser Valley and many smaller markets in southern Ontario and Quebec\u2014and still trending higher. We believe such a frantic pace is being driven more by a fear-of-missing-out sentiment than (solid) market fundamentals. Rapidly rising prices also often invite heightened speculative activity, which adds more fuel to already hot markets.<\/p>\n