RE/MAX Canada is anticipating a healthy housing price growth in 2021. This is due to move-up and move-over buyers that are continuing to drive the activity in many of Canada’s regions. There’s an ongoing housing supply shortage that is likely to continue. This will put pressure on the market and therefore drive the prices up.
The 2021 RE/MAX Housing Market Outlook Report now estimates a four to six per cent increase in the average price of a residential property nation-wide. The COVID-19 pandemic disrupting our lives, it’s clear that consumers are optimistic.
According to a recent survey, it was reported that 52 per cent of Canadians have confidence in real estate as being one of the best investment options in 2021. They are also expressing confidence that the Canadian housing market will remain steady into 2021.
RE/MAX Canada Expects The Average Residential Price to Rise
It was reported tear 35 per cent of RE/MAX brokers have indicated that the move-over buyers from other cities, and provinces, will continue to support the market activity in 2021. Move-up buyers will most likely be 45 per cent and will most likely be a primary driver of the housing market as we move into next year.
According to the same report, 53 per cent of Canadians are confident that the Canadian housing market will continue to be steady in 2021. Finally, there was a reported 52 per cent of Canadians that believe real estate will remain one of the best investment opportunities next year.
“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. This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.” – Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada.
The Impact of The COVID-19 Pandemic
Many economists predicted that employment disruptions would have a negative impact on the Canadian housing market. The pandemic did directly influence six per cent of Canadians that wanted to sell their home.
It was also reported that 40 per cent of Canadians realized that their house needed renovations during the pandemic, while 29 per cent discovered that they needed more space. Younger Canadians, under the age of 35, are significantly more likely to realize they had more space, and they are motivated to move out of their neighbourhoods.
Canadian Housing Market Insights for 2021
In Ontario the RE/MAX broker network indicated that the market activity across the province was estimated to remain very steady in 2021. There will be a potential for the average sale price to increase between seven and twelve per cent in regions such as; London, Kitchener-Waterloo, Hamilton-Burlington, Niagara, Cornwall and Thunder Bay.
This is due to the high demand and low supply, with shifting home-buying trends that are more toward local livability factors. Some of these factors are more space, larger yards and that are in a closer proximity to amenities.
According to the survey, move-up and move-over buyers are also impacting the luxury segments in the province. Since the start of the pandemic, cities such as Ottawa and Hamilton-Burlington have seen a massive spike in the demand for luxury homes.
The urban-suburban interest in Ontario has had an impact on Toronto’s downtown core, specifically condos, which is currently a buyers market. The supply levels throughout the city of Toronto continue to drop and are not expected to improve next year, this will impact the average price of a property.
Contact Lori and Team Today
Make sure you contact Lori VanDinther and her team today if you’re interested in buying or selling your home. If you’re interested in learning what your home is worth, try our free home evaluation. Lori will be happy to answer any questions you might have and Lori and her team are following all health and safety protocols for COVID-19.