he Canadian Real Estate Association predicted that 2021 would see a rise of 9.1% ($62,400) in average house prices, and this is probably the most optimistic forecast for the real estate industry. The real state association stated that due to ease of pandemic in 2021, it is expected that the house prices will remain consistent or rise all over the country.
According to the report, the rising urge to buy large single-family properties will lead to a rise in house prices as prospective buyers will be competing for the best properties. While there is an upsurge in unemployment and unpredictable situation due to the outbreak of the second wave of coronavirus, this forecast is exuberant for more than 130,000 real estate agents.
Ratehub predicted a 4-7% hike in prices excluding the apartment suite market. Royal LePage predicted a 5.5% increase in house prices while Re/Max is betting on 4-6% rise in prices. A widely varying range of forecasts came from debt market watchers. Fitch Ratings anticipates that home costs should decrease three per cent to five per cent one year from now, foreseeing borrowers may default on home loans as joblessness makes homeownership unreasonably expensive.
CREA forecasts that in 2021, home sales will rise to 7.2%. According to CREA’s estimate, as home sales this spring has been really low, record sales in summer were seen with real estate market bouncing back. However, the demand for houses exceeded supply similar to the previous year trends. CERA expects that as we move forward in 2021, there will be a rise in home sales and monthly home deals will probably move back to more ordinary levels compared to that of 2020. It is said that home costs in the Prairies and Newfoundland and Labrador are not rising with the equivalent “power” found in business sectors like British Columbia and Quebec. CREA forecasts that Ontario real estate prices are going to rise by 16% with average sale price hitting $823,656 in 2021 i.e., 16.3% more than the previous year.
The report says that real estate industry became a strength of the Canadian economy. Real estate market saw this rise due to record levels of global migration, an expanding portion of twenty to thirty-year-olds entering their homebuying years and low-interest rates. The overall reason for the economy’s stability was the government’s support programs for people and organizations during the pandemic.
The report likewise noticed that while supporting borrowing, home loan rates must remain low one year from now.