OTTAWA (Reuters), – Canadian home prices increased 0.8% by December, with buyers scrambling to act ahead of anticipated rate rises. Resales supply was also constrained. Data from Wednesday revealed this.

The prices rose in 8 of 11 Canadian major markets, including the Teranet National Bank Composite House Price Index. This index tracks repeat sales for single-family homes.

Daren King, an economist from National Bank of Canada (OTC), stated that some people have likely brought forward transactions to secure favorable interest rates.

He said that “In addition to the shortage of market supply, it is certain that prices are putting upward pressure, and this should be continued in the short-term.”

Investors bet that the Bank of Canada will raise interest rates soon, even though there are concerns that tighter regulations to deal with surging COVID-19 cases could impede economic growth.

Canada’s realtors reported that home sales increased 0.2% from November to December, and active listings declined to extremely low levels.

Official data on Tuesday showed that although housing starts fell by 22% in December it was still high historically. Shelly Kaushik from BMO Capital Markets stated that the 6-month-old average was similar to booms during the 1970s and 80s.

In a note, she stated, “Canada’s Housing Market remains extremely strong. Price strength is largely driven primarily by sky-high supply rather than shortage of supply.”

Victoria, British Columbia, at 2.1%, and Halifax, Nova Scotia, at 1.9% led Teranet’s gains. Prices declined in Winnipeg (Manitoba), Ottawa-Gatineau and Edmonton, Alberta.

Annually, the index grew by 15.5%. This was after several months of slowing down. The annual index was led by Halifax at 30.7% while Hamilton saw a gain of 25.4%.