Real Estate Trends

Real estate in Canada

What We Can Expect for Canadian Real Estate in 2021

The COVID-19 Pandemic and Real Estate 

It has been reported that prices aren’t expected to plummet in 2021. The COVID-19 pandemic didn’t deviate Canada’s hottest housing markets, the way some experts had predicted. 

Cities such as Toronto and Vancouver saw some fierce composition for detached home. That meant that there were back-to-back months of record-breaking prices. CTV was speaking with some real estate agents and experts in Vancouver, Calgary and Toronto to learn more about what we can expect to see in 2021. 

While most of them expect the 2021 market to look different, they are also expecting prices for mid-range detached homes to only go up as Canadians look for homes offices and for more space, in an effort to make life with COVID-19 more comfortable. 

Ultra-Low Interest rates 

It was also reported that there were ultra-low interest rates introduced in the early days of the pandemic. Those purchase are more attractive when you have these ultra-low interest rates and it’s also more attractive for first-time home buyers who haven’t seen their livelihoods effected by COVID-19. 

“COVID has made people appreciate the space they live in — or on the flip side, not appreciate it. They’re taking a more critical eye to where they live.” Says Vancouver based agent Mark Wiens, in early December. 

The State of Condos 

There were bidding wars for houses that are poised to heat up in many parts of the country, but condos appear to be a different story. Experts have agreed that the small one-bedroom condos in downtown Toronto have seen a price hit in 2020.

They aren’t expected to improve in 2021 and this is bad news for condo owners who are interested in selling, however, it’s good news for buyers who are looking for a small space. 

The Small Town Revival 

“Everyone locked in their homes discovered they things they wanted to change. Some people wanted to change their homes, invest in a bigger kitchen. Some other people decided ‘I want a big change and I’m going to move out of the city.’” Says Lauren, CEO of Zoocasa. 

People have been reported to be moving out of the downtown Toronto area and seeking out smaller towns and cities throughout southern Ontario. Which has caused a fierce competition for houses. 

It was also reported that if the economy continues to revere from COVID-19 shutdowns and the interest rates can remain as low as they are, this could translate to an upward pressure on the housing market. 

The Burlington Real Estate Statistics for December 2020

The Real Estate Association of Hamilton-Burlington reported a total of 913 sales of residential properties in December 2020. In Burlington there was a total of 172 sales, a 59 per cent increase when compared to the previous year. 

New listings were reported to be down 47.87 per cent when compared to November 2020 and up 34 per cent over December last year. It’s important to note that the sale of residential properties saw an increase of 1.04 per cent to $729,853.

The average price of a residential home in Burlington was $961,908, a 23 per cent increase when compared to the same time last year. 

“We can see that the market has slowed from November, which is normal due to the holiday season, as well as increasing COVID-19 cases throughout the province, and more regions in Ontario placed into lockdown throughout December. Despite being in either the Red Zone (Control) or Grey Zone (Lockdown) throughout December, we do not see the effects on the number of sales and new listings that we did in the spring lockdown. This activity could be the result of continued low interest rates, coupled with increasing consumer confidence due to the approval of the COVID-19 vaccine in Canada.” Says RAHB President Donna Bacher.

Contact Lori VanDinther and Team Today

Please feel free to contact Lori if you have any questions or concerns about COVID-19 protocols. 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.

Flipping wooden cubes 2021

REMAX Real Estate Market Outlook for 2021

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. 

wreath on a blue door

Burlington Real Estate Market Statistics for October 2020

Burlington Real Estate Market Statistics For Fall

The Burlington Real Estate Market Statistics for October 2020 were provided by the REALTORs Association of Hamilton-Burlington (RAHB). It was reported that this fall that there were 1,615 residential properties sold within the RAHB market area. Sales were reported to be down 7.6 per cent over the previous month and up 23.7 per cent compared to fall 2019.

In October 2020, we saw that the average price for a residential property was up 0.02 per cent to $721,523, and up 19.8 per cent from the same time last year. It was also reported that the number of active listings were 39.8 per cent lower than the same time last year.

Burlington Residential Table

Burlington Residential Table October 2020
Burlington Residential Table October 2020

Let’s take a look at the above chart, Burlington Residential Table, we can review the various numbers for October 2020. There was a reported 419 new listings, which is a 19 per cent increase when we compare it to the same time last year. There was also a reported 374 sales, this was a 35 per cent increase over October 2019.

The average property price in Burlington was reported to be $891,844, that’s a 14 per cent increase over the same time last year. It’s also important to make note of the median price for residential homes in October 2020, it was up by 13 per cent to $800,250. Let’s now turn our attention to the map below and get a closer look at each neighbourhood in Burlington.

Average Residential Price by District

Average Price by District
Average Price by District

The above map, Average Price by District, illustrates each area in Burlington. The areas that we should take note of are; 31, 34 and 34. Each of these areas had the highest number of sales for October 2020.

It should also be noted that area 35, better known as Millcroft, had a total of 113 sales. This doesn’t come as a surprise as this is the most sought after neighbourhood in Burlington. The average price of a home in this neighbourhood was reported to be $793,885. The area that had the highest property price was area 38, which was $1,800,594.

RAHB Statistics for October 2020

The October Burlington Real Estate statistics saw a total of 1,615 sales of residential properties. When compared to the same time last year, there was a decrease of 7.6 per cent over the previous month and up 23.7 per cent over last month. New listings also saw an increase, there was a 19 per cent increase over October 2019, and a 39.8 per cent increase compared to the same time last year.

“The trends this Fall are not reminiscent of what we would normally see – with October activity slowing slightly compared to September – and this is due to 2020 not being a typical year. As a result of COVID-19, we experienced a delayed Spring market and a surge in record activity over the Summer months when the province began to reopen. As a result of this unstable year, active listings at the end of each month are some of the lowest we’ve seen, exacerbating low inventory levels and continuing to drive average price.” – RAHB President Kathy Della-Nebbia

Contact Lori VanDinther and Team Today

There’s a lot going on in the world and we know you might have some questions. If you’re looking for more information about market up dates related to COVID-19, Lori will be happy to help answer those questions as well. Or you might be looking to put your property on the market, please contact Lori and her team and they’ll be happy to help.