The Canadian real estate market will be driven by so-called “move-up” and “move-over” buyers in 2021, and with persistent supply shortages, prices will increase 4-6%, according to a forecast from REMAX Canada.
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less dense cities and neighbourhoods,” said Christopher Alexander, executive vice president and regional director of REMAX Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue into 2021.”
Alexander’s analysis is consistent with a Leger survey conducted on behalf of REMAX that found 52% of Canadians believed real estate will be one of the best investments in 2021, and that the housing market would remain torrid.
The survey also revealed that only 6% of sellers in 2020 were influenced by the COVID-19 pandemic, and that 40% undertook home renovations, while another 29% opted for more space.
Suburban markets, like North Bay, Kingston, Moncton and Greater Vancouver, saw an influx of new residents this year, and according to the REMAX report the trend will continue into 2021.
“Market activity across the province is estimated to remain very steady in 2021,” the report said of Ontario, “with the potential for average sale price increases of between 7-12% in regions like London (7%), Niagara (12%), and Kingston (10%), Cornwall (10%), and Thunder Bay (10%). This is being attributed to high demand and low supply, coupled with shifting home-buying trends toward local liveability factors such as more space, larger yards and closer proximity to amenities like parks.
“Move-up and move-over buyers are also impacting luxury segments in the province. Cities such as Ottawa and Hamilton-Burlington have seen a massive spike in demand for luxury homes since the start of the pandemic. This is expected to continue in 2021.”
The survey conducted on behalf of REMAX also found that 15% more Canadians spent time researching the real estate market during the pandemic’s second wave this past autumn, which indicates that buying activity will remain robust as the new year begins.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate