The COVID-19 global pandemic has affected the housing market, and strong demand has pushed up housing prices in Canada. Bindu Suri detailed Royal LePage’s new market survey forecast.–December 14, 2020
Canadian real estate agent Royal LePage anticipates that on the basis of unexpectedly strong sales growth this year, house prices will rise 5.5% in 2021 due to a shortage of real estate for sale and record low interest rates.
This forecast is inconsistent with other predictions, including the government-backed mortgage insurance company Canadian Mortgage and Housing Corporation (Canadian Mortgage and Housing Corporation) forecasting price declines in 2021, and some of the country’s largest banks, which expect slower growth.
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Phil Soper, Chief Executive Officer of Royal LePage, said that “upward pressure on housing prices will continue due to insufficient supply to meet rising demand.”
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As indicated by data from the Canadian Real Estate Association, Canada’s average house price in October rose by more than 15% from the same period last year, a record high.
The Royal Landers Bank of Canada and the Bank of Nova Scotia stated in their fiscal 2020 annual report that they expect house prices to increase by 0.6% and 0.4%, respectively, in the next 12 months due to the coronavirus pandemic and the apartment market Weakness and housing constraints lead to economic uncertainty and affordability.
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Royal LePage predicts that as “life returns to normal,” the shift to bulk housing will ease, which will boost the sales and prices of single-family homes this year, thereby alleviating some pressure on the apartment market.
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The organization stated that demand for apartments in most major Canadian cities is expected to remain healthy, except for Toronto, where demand in downtown Toronto will continue to be weak.
Ottawa and Vancouver are expected to lead by 11.5% and 9%, respectively, while Calgary and Edmonton will be behind by 0.75% and 1.5%. Toronto prices are expected to rise by 5.75%.