canadian real estate market forecast

Barrie, Ont. Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. “Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained, and current market activity further exemplifies this. “We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. While COVID-19 lockdowns in March and April slowed down the housing market in Western Canada, transactions in Kelowna, Saskatoon and Vancouver resumed by May, with sales in both May and June surpassing year-over-year levels. The BC Real Estate Association (BCREA) economist, BCREA is a real estate industry advocacy organization, predicts Greater Vancouver prices will rise 1.4% in 2021 (downgraded from 6% price growth in their previous 2021 forecast). Sudbury, Ont. Ontario Real Estate Prices to See Double Digit Decline. According to the RE/MAX broker network in western Canada, sellers’ markets are likely in both regions next year, driven in large part by low inventory levels, low interest rates and high demand, as was the case in 2020. Despite the disruption of the virus, consumers are feeling optimistic, according to a Leger survey conducted on behalf of RE/MAX Canada, with 52 per cent of Canadians eyeing real estate as one of the best investment options in 2021, and expressing confidence that the Canadian housing market will remain steady next year. Toronto, Ont. North Bay, Ont. Get more insights and download the infographics: Fredericton, NB Saint John, NB Moncton, NB Halifax, NS Charlottetown, PEI St. John’s, Newfoundland. The survey found that Canadians are almost equally split in their confidence in Canada’s real estate market, with 39 per cent as confident as they were prior to the pandemic, and 37 per cent slightly less confident. Canadian real estate market to appreciate 3.2% in 2020 reflecting similar price growth in both condo and detached segments Français News provided by Royal LePage The story of Canadian real estate is one of shifting economic fortunes and changing real estate trends. At the beginning of the year, no one really knew what would lie ahead for the real estate industry (or any industry for that matter) due to COVID-19. Conversely, Winnipeg has shown a moderate increase of average residential sale price, rising from $315,720 in 2017 to $323,001 in 2018. In Ontario, the Canadian Real Estate Association (CREA) forecasts the average sale price of $823,656 in 2021, up an astounding 16.3% from 2020 levels. The 2020 RE/MAX Fall Market Outlook Report includes data and insights from RE/MAX brokerages. Home ownership remains a priority for Canadians, with 53 per cent of respondents in a recent RE/MAX survey conducted by Leger expressing intent to purchase a home and 47 per cent expressing intent to do so in the next five to 10 years. Thunder Bay, Ont. Healthy price increases are expected next year, with the RE/MAX 2020 Housing Market Outlook Report estimating a 3.7 per-cent increase in the average residential sale price. The average residential sale price increased 13 per cent in Greater Vancouver to approximately $1,020,300 and rose 17 per cent in the Greater Toronto Area (GTA) to an estimated $725,857. The ups and downs are always experienced in the market. With Ontario being one of the hardest-hit provinces in Canada, markets like Niagara, Mississauga and Kitchener-Waterloo experienced significant drops in activity, but bounced back aggressively in June as economies began reopening. And forecasts for 2021 reflect a continued trend of high prices driven by low mortgage… Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. Liveability continues to be important to Canadians, with more than half wanting to live closer to green spaces and shopping/dining locations. The average residential sale price in Edmonton decreased slightly, by two per cent year-over-year in 2016, while Calgary’s average residential sale price decreased by four per cent. RE/MAX brokers across Canada were asked to provide an analysis on market activity during COVID-19 lockdowns, assessing how their regions have bounced back with easing restrictions. Durham Region, Ont. Similar to Ottawa and Regina, Toronto’s luxury market remains unimpacted by COVID-19 and is driven by move-up buyers. The Niagara region is also showing strong growth, with average residential sale price increasing almost 13 per cent, from $378,517 in 2018 to $427,487.50 in 2019. 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Atlantic Canada In Atlantic Canada, Halifax, Saint John and St. John’s have all experienced stable price appreciation in 2018. Canadian housing prices anticipated to increase by 4.6% in the third and fourth quarter according to RE/MAX brokers and agents. An uptick in new listings is anticipated for the fall market, now that buyers and sellers are more comfortable engaging in the housing market, with all of Ontario now in phase three of re-opening. Learn more. When it comes to where Canadians would prefer to live – urban, suburban or rural – they are evenly split, with roughly three in 10 preferring to live in each area. (February 2020), Easing the stress test, for now... (February 2020), Are Toronto home prices sky-bound again? Moody’s: Canadian Real Estate Prices Drop 8-30%. Much like the rest of the country, the majority of Atlantic Canada is a sellers’ market, which is anticipated to continue next year. Ontario real estate is one of the more vulnerable markets, due to sky high price increases over the past few years. Get more insights and download the infographics: Victoria, BC Nanaimo, BC Vancouver, BC North Vancouver, BC West Vancouver, BC Tri-City (Greater Vancouver), BC  Fraser Valley, BC Kelowna, BC Edmonton, AB Calgary, AB Saskatoon, SK Regina, SK Winnipeg, MB. Sudbury, Ont. Learn about RE/MAX real estate franchise opportunities in Ontario-Atlantic Region and Western Canada. 15 January 2021. While Toronto is experiencing its “busiest” construction season ever, housing supply still falls short of the demands of the city’s rapidly growing population. However, this is expected to change in 2019. And that is on the heals of this year’s increase of 17.1%. This was a trend that was evident in many regions across the country, including North Bay, Kingston, Moncton and Greater Vancouver, among others. Agents sold a record-breaking 10,563 homes in October, a 25-per-cent increase … National home sales are forecast to rise by 7.5% to 518,100 units next year, with most of this increase reflecting a weak start to 2019 rather than a significant change in sales trends out to the end of next year.” 3 In Atlantic Canada, Halifax and Saint John have experienced solid price appreciation of six and five per cent, respectively. London, Ont. Mississauga, Ont. Although Canada's property market witnessed deflation in 2018, the commercial real estate market rebounded in 2019. Both regions are predicting to see average residential prices increase by two and three per cent next year. While average residential sale prices for all properties increased by two per cent, from $1,030,829 in 2017 to $1,049,362 in 2018, the number of sales dropped by 30 per cent. This is compared to the earlier prediction by RE/MAX brokers and agents of +3.7% at the start of the year. Durham Region, Ont. How Will the Newfoundland & Labrador Real Estate Market Fare? Economic growth is also solid: the Conference Board of Canada is predicting growth of 2.4% in both 2019 and 2020. The decrease is attributed to actual and perceived impacts of the mortgage stress test and rising interest rates on housing affordability. Value-conscious consumers from the Greater Toronto Area are buying in droves, with many choosing to live in the region while commuting to Toronto. RE/MAX is calling for a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Affordability continues to attract many buyers in the region, most of whom are buying single family homes. Aggregate price of a home in the Greater Toronto Area forecast to rise 5.75%. This is expected to continue in 2021. An analysis of the latest data and developments in Canada’s housing market. balcony, pool etc. Toronto, Ont. The Canadian Real Estate Association expects the national average home price will rise 9.1 per cent to $620,400 in 2021, in one of the most optimistic forecasts yet for the real estate sector. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”. “Southern Ontario is witnessing some incredibly strong price appreciation, with many regions still seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. Ottawa, Ont. Toronto is set to experience a strong housing market in 2020. This is compared to the 3.7 per cent increase that was predicted in late 2019. The Canadian Real Estate Association expects the national average home price will rise 9.1 per cent to $620,400 in 2021, in one of the most optimistic forecasts yet for the real estate sector. Prices in the real estate market can change very quickly depending on the regulations, interest rates, consumer preferences and many more. It is expected that the new mortgage stress test will slow activity across Canada during first few months of 2018 and at the end of November, the Bank of Canada predicted that the new regulations could disqualify up to 10 per cent of prospective home buyers who have down payments of 20 per cent or more. Detached homes continue to be the most in-demand property type, while the region’s aging population and retirees are driving the condominium market. Noting improving economic conditions, the association says that markets across Canada should either hold in terms of pricing or climb higher. Regional housing market insights: Victoria, BC Nanaimo, BC Vancouver, BC Whistler, BC Kelowna, BC Edmonton, AB Calgary, AB Saskatoon, SK Regina, SK Winnipeg, MB. The low absorption rate is expected to bring down average residential sale prices in 2019 by three per cent. Average residential sale prices increased by six per cent year-over-year from $674,930 in 2017 to $718,915 in 2018, with prices expected to decrease by three per cent in 2019. “The drop in sales in key markets across British Columbia can be partially attributed to Canadians’ increasing difficulty in getting an affordable mortgage in the region,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. Hottest real estate markets in Canada . Immigration to the city, in combination with reasonable prices and ample supply of inventory, is expected to drive sales going into 2020. “Looking ahead, government financial aid programs may be coming to an end in September, which could potentially impact future activity; however, the pent-up demand and low inventory dynamic may keep prices steady and bolster activity for the remainder of 2020. High inventory continues to be a factor in many regions including Regina, Montreal, Saint John and St. John’s, offering a good selection of product to first-time and move-up buyers in these cities. Greater Vancouver Real Estate Market Forecast 2021. 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This trend is stronger among Canadians under the age of 55 than those in the 55+ age group. On September 28, Bloomberg News reported that Canadian households are increasingly optimistic about the real-estate market. Analysis of national and provincial trends in housing affordability and developments in major metropolitan housing 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021, 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021, Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021, 52% of Canadians believe real estate will remain one of the best investment options in 2021, More than one-third (36 per cent) would prefer to work with realtors who use technology/virtual services to enhance the buying/selling process, 15 per cent of Canadians have spent more time researching/monitoring the real estate market during the first and second wave of the pandemic.