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Housing prices in Canada have been experiencing historical growth in both sales activity and home prices in the past year. Demand increased while inventory dropped, resulting in a dynamic shift in the seller market. In March there were new records for both the average number of homes and home prices sold in Canada, which surpassed even the previous summer highs. Home sales hiked more with a 76% year over year increase to 76,259 transactions for March. The national average reached a 32% increase which was $716,828 year over year. Below are some of the market insights on the Canadian housing market:
Due to some of the Covid-19 restrictions, the Montreal’s real estate market slowed down. Montreal continues to be more of a seller’s market since the inventory of all the types of properties has consistently decreased since January 2020. Factors that are powering the real estate demand in Montreal are lower prices compared to other housing markets in Canada and a low record of mortgage rates.
The Toronto housing market is anticipated to favour the sellers’ in 2021 and this will be characterized by a persistent rising in prices and supply shortage. Low inventories have been a trend in most housing markets in 2020, exerting upward pressure on prices. The average price of houses sold in Toronto was $1.09 million in March which is a 22% increase year over year. This growth in prices has been isolated to freehold and suburban properties.
The prices of semi-detached and detached homes reached $1.04 million and $1.4 million respectively a growth of 18% and 27% compared to March 2020. The Toronto housing market emerged with an average price rise of $819,832 in 2019 to $918,883 in 2020. Rising prices, low supply, and growing demand are expected to impact the prices and activity in 2021.
The Ottawa housing market average price are expected to rise by 7%, which will favour sellers in 2021. The housing market prices will favour sellers; this is due to the high demand and low housing inventory. Low inventory has been the major trend across the majority of housing markets in Ottawa, thus exerting an increase in prices. Ottawa homes saw an average rise in prices from $441, 693 in 2019 to $524,956 in 2020. Move-up buyers who are commonly families are expected to drive the Ottawa housing market upwards in 2021. Buyers are encountering lots of challenges buying a home due to frequent bidding wars and low inventory which are features of the Ottawa seller’s market.
Great Vancouver and Vancouver are some of the great examples of the consistent activity that is expected to go on in 2021. According to a certain broker network in western Canada, sellers’ markets are likely to be driven by low-interest rates, low inventory levels and high demand. Some of the suburban neighbourhoods including Ladner, Pitt Meadows and Maple Ridge in Greater Vancouver are expected to be top neighbourhoods next year due to the easy access and affordability of more outdoor space. A recent study report shows that the residential prices are expected to rise by four to five per cent this year.