The Canadian real estate industry expects that the new year’s growth will be slower than the previous year, but prices will increase substantially. The Canadian Real Estate Association, an industry organization representing Canadian real estate agents, released its forecast for 2021. They expect substantial growth in 2021 but not as big as we saw last year.
Canadian Real Estate Prices Are Expected to Rise by More Than 9%
According to industry insiders, Canadian real estate prices are expected to rise sharply next year. CREA predicts that the average selling price in 2021 will be US$620,404, an increase of 9.1% over 2020. Industry insiders predict that the average selling price will be 13.1% higher than in 2019. In 2019, nationwide prices only increased by 2.4%, so the following are huge prints. The industry must hope for a pandemic every year.
Ontario Real Estate Prices Are Expected to Rise by More Than 16%
Real estate prices in Ontario are expected to lead to a rise in housing prices at the provincial level. Industry insiders predict that it will reach US$708,377 in 2020, an increase of 17.1% over last year’s average. It is worth stating that real estate prices in southern Ontario outside of Toronto are the leading cause of price increases.
B.C. Real Estate Prices Are Expected to Remain Stable
It is not expected that prices in British Columbia will change much next year. CREA expects the average price in 2021 to be US$780,276, a relatively stable increase of 0.3% over 2020. The association predicts that the average price in 2020 will be US$778,012, an increase of 10.7% over the previous year. In 2019, the entire British Columbia province’s average sales price dropped by 1.0% of the prior year. It is uncertain what is behind the volatility forecast, but British Columbia is expected to be Canada’s worst-performing provincial market. The year 2020 is closely followed.
Quebec Real Estate Prices Are Expected to Rise by More Than 13%
Real estate prices in Quebec are expected to be the second fastest-rising price after Ontario. CREA predicts that by 2021, the average price will reach US$407,569, an increase of 13.6% over the same period last year. The industry organization predicts that in 2020 it will reach an average of US$358,754, an increase of 13.3% over the previous year. In 2019, the average sales price increased by only 3.7%, so these expected increases are substantial.
CREA’s forecasts are more optimistic than those of people with less vested interests in the past few weeks. No one expects prices to fall this year, but the end of mortgage payment delays is expected to stimulate some sellers next year. Banks such as RBC, rating agencies such as Fitch, and venture companies such as Veritas all predict a decline. However, given the record level of real estate sales during the recession, those prices that are lower than positive expectations are currently challenging to sell to the public.