Canadians on the move: not fleeing, but the resettlement trend of the entire Canadian real estate market is real.
RE/MAX Canada anticipates average residential prices to rise by 4% to 6% in 2021
- 35% of RE/MAX brokers stated that “migrating” buyers from other cities and provinces will continue to stimulate market activity in 2021
- 45% of RE/MAX brokers stated that rising buyers might become the main driver of demand in the housing market in 2021
- Half of Canadians (53%) believe that the Canadian housing market will remain stable in 2021
- 52% of Canadians believe that real estate will remain one of the best investment options in 2021
RE/MAX Canada expects that housing prices will maintain healthy growth in 2021, and upward and downward buyers continue to promote activities in many parts of the Canadian housing market. “Since the summer, we have received many rumors that families are considering changing their lifestyles by relocating to lower-density cities and communities,” said Christopher Alexander, executive vice president and regional director of RE/MAX, Ontario, Canada. 52% of Canadians regard real estate as one of the best investment options in 2021 and expressed confidence in Canada next year.
The Impacts Of COVID-19 On the Canadian Real Estate Market
The survey shows that although many economists predict that employment interruptions will hurt the Canadian housing market, the pandemic has only directly affected 6 percent of Canadians selling their houses. Besides, 40% of Canadians realize that their homes need to be renovated during the pandemic, while 29% find that they need more space. Speaking of where Canadians prefer to live, their income is evenly distributed, and about three-tenths prefer each region.
In-Depth Discussion: Insights on The Canadian Real Estate Market In 2021
RE/MAX brokers and agents are asked to analyze their local market activities in 2020 and prospects for 2021. Entering the new year, 84% of the RE/MAX brokers and agents surveyed expect a seller’s market.
Vancouver and the Greater Vancouver area are a good example of the expected continued stable activity in 2021. According to data from the RE/MAX broker network in Western Canada, seller markets in the two regions next year are likely to be driven by low inventory levels, low-interest rates and high demand, such as 2020. In Metro Vancouver, due to the affordability and easy access to more outdoor space, the suburbs are expected to be Pitt Meadows, Ladner, and Maple Ridge next year. It is expected that the average residential prices in these two regions will increase by 4% and 5% respectively by 2021.
On the other hand, Calgary and Edmonton’s markets are currently in equilibrium and are expected to last until 2021. Edmonton’s luxury goods market continues to remain strong and appears to be unaffected by the pandemic. The average residential prices in these two regions are expected to rise by 2% and 3% next year.
The interest of buyers from the city to the suburbs in Ontario has affected downtown Toronto, especially the apartment market. The supply level throughout Toronto continues to decline and is not expected to improve until 2021, which will affect average house prices. It is expected that immigrants will also promote some market activities next year, which implies that those who come to Toronto for educational purposes and the expected influx of immigrants from abroad. Similar to Ottawa and Regina, Toronto’s luxury goods market remains unaffected by COVID-19 and is driven by buyers.
Like the rest of Canada, most of Atlantic Canada is a seller’s market, which is expected to continue next year. In Moncton, Halifax, and St. John’s, housing activities are mainly driven by buyers from outside the province and promoted buyers, who either speed up their retirement plans or work from home instead of working in the office.
Overall, similar to other parts of the country, increased space has become a major demand for buyers after the pandemic. In cities such as Moncton, St. John’s, and Charlottetown, detached houses have become the most popular housing type. According to the forecast of Canadian RE/MAX brokers in the region, this situation will continue in 2021.
Other findings from the 2021 RE/MAX Canada Housing Market Outlook Report:
More than one-third (36%) of people prefer to work with real estate agents who use technology/virtual services to enhance the buying/selling process.
During the first and second wave of pandemics, 15% of Canadians spent more time researching/monitoring the real estate market.
About The 2021 RE/MAX Canada Real Estate Market Outlook Report
The 2021 RE/MAX Canada Real Estate Market Outlook Report includes data and insights provided by RE/MAX brokers and local real estate councils. Conduct market activities and local development surveys on RE/MAX brokers and agents. A summary of the area with other broker insights can be found in blog.remax.ca.
About Leger Ledger is Canada’s largest full-service market research company. As of November 6-8, 2020, an online survey of 1,534 Canadians was completed through Leger’s online panel. Legg’s online group has approximately 400,000 members nationwide, with a retention rate of 90%. The same size probability samples will produce an error margin of +/- 2.51%, which is 19