Despite the Delta variant, fall housing market expected to remain strong, say RE/MAX brokers and agents
Single-family homes saw the largest price increases when comparing 2021 * data with 2020, rising between 6.8 and 27.3 percent across 26 markets examined in the report. RE / MAX brokers and agents expect this trend to continue into the fall, driven by strong demand from young families.
“As our brokers and agents predict, market activity is expected to remain stable in the fall, which is encouraging despite the ongoing challenges of the Delta variant,” says Christopher Alexander, Senior Vice President, RE / MAX Canada. “This is particularly relevant given the housing markets in Canada are often a good indicator of economic activity in the country, and with the bank of Canada Forecasts economic growth of 4.5 percent in 2022, a sharp decline in the real estate market is a good sign that things may return to a more natural rhythm. “
Regional overview of apartments
High property prices, driven by low supply and high demand, have created difficult conditions for many homebuyers across Europe Canada, especially in cities like Toronto and Vancouver. However, affordable options still exist for home buyers considering alternative markets as they can still work remotely. RE / MAX brokers have this trend in Edmonton and Calgarywhere buyers enjoy increased purchasing power thanks to local housing affordability coupled with lower interest rates. RE / MAX brokers and agents expect this trend to continue through the rest of 2021.
When comparing the YoY average sales prices of single-family homes, condominiums, and townhouses, British Columbia Nanaimo, Victoria and Vancouver experienced significant price increases of 23 percent, 19.1 percent and 16.4 percent, respectively. Nanaimo also saw one of the largest price increases in the condominium and townhouse segments compared to others Western Canada Regions with average condominium prices currently at $ 343,713 (an increase of 17.6 percent over the previous year) and townhouses $ 511,549 (a 65.8 percent increase over the previous year). In Calgary and Regina, The autumn outlook is relatively status quo, with prices expected to remain unchanged Calgary and one percent more in Regina. In the meantime, Edmonton, Saskatoon, Vancouver, Victoria, Winnipeg and Nanaimo For the rest of the year, price gains of between four and nine percent are expected, according to the RE / MAX brokers and agents.
Not surprising, Ontario has seen some of the highest average house price increases in single-family homes in the country, with most regions (13 out of 16) seeing increases of between 20 and 35.5 percent year-over-year. The outlier markets with price increases below 20 percent include Toronto (+14.6 percent), Thunder Bay (+17.1 percent) and Mississauga (+19.7 percent).
The condominium and townhouse segment has also performed well in all of these regions, with smaller and more suburban markets like Chef, North bay, London, Peterborough, and Southern Georgian Bay saw a higher year-over-year increase. The estimated price outlook for the rest of the year ranges from a two percent price decline in North bay, to increases in the other regions of between two and 15 percent.
Unlike some regions in the west, housing market activity is in Atlantic Canada persisted YoY, with Halifax and Moncton to record significant price increases for all types of property. This trend is expected to continue into the remainder of 2021. The price for single-family houses in Halifax increased by 24.3 percent compared to the previous year, from $ 402,484 to $ 500,147. In the meantime, Moncton Prices rose from $ 233,676 to $ 282,886 – by 21.2 percent year-on-year.
According to RE / MAX brokers and agents, the housing and city housing markets are in Halifax, St. John and Moncton Condominium prices rose between 12.5 percent and 48.9 percent year-on-year. Moncton in particular, with one of the highest price prospects for the remainder of 2021, between 12 and 15 percent is still strongly expected. St. John Price increases across all property types are expected to be between one and three percent while Halifax the average retail price could rise six percent for the rest of the year.
“Housing activity has remained strong during the pandemic, so it’s not surprising that the outlook continues to look up for the remainder of the year, which is great for homeowners and their equity, but challenging for first-time buyers who have been off priced on the market, “says Elton Ash, Executive Vice President, RE / MAX Canada. “We need to keep educating Canadians from a practical, real-life perspective. What is currently affecting the Canadian housing market? Low interest rates, economic stimuli, higher budgets for home purchase, a higher savings rate, homeowners are too afraid of selling and too little new construction. These factors created the current market conditions. “
Alexander adds, “The Canadian real estate market has historically provided homeowners with great long-term returns and solid financial security, but there is no doubt that the rapid price growth we have seen recently is cause for concern. No need to panic, however, data shows that the acceleration in prices for single family homes may flatten in some urban centers, but prices in many smaller towns and cities that were once an affordable haven are continuing to rise, and before that we believe in the pandemic long-term health of Canada Housing market, but to protect it we need to recognize and address the housing shortage. Our current government must stop using patches and heal the root of the problem. “
About RE / MAX Autumn Housing Market Forecast Report 2021:
The RE / MAX Fall Housing Market Outlook Report 2021 contains data and insights from RE / MAX brokers. RE / MAX brokers and agents are asked about market activities and local developments. For regional summaries with additional broker insights, visit REMAX.ca. The autumn outlook is based on forecasts from RE / MAX brokers and agents. The overall outlook is based on the average of all regions examined, weighted by the number of transactions in each region.
* The average sales prices for residential properties in 2020 were all year, 2021 were from January 2021-August 31, 2021.
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As one of the world’s leading real estate franchisors, RE / MAX, LLC is a subsidiary of RE / MAX Holdings (NYSE: RMAX) with more than 140,000 agents in more than 110 countries and territories. Nobody in the world sells more properties than RE / MAX when measured by residential transaction pages. RE / MAX was founded in 1973 by Dave and Gail Liniger with an innovative, entrepreneurial culture that allows its agents and franchisees the flexibility to run their businesses with great independence. RE / MAX agents have lived, worked, and served in their local communities for decades, raising millions of dollars each year for Children’s Miracle Network Hospitals® and other charities. Visit www.remax.com to learn more about RE / MAX, browse housing listings, or find a representative in your community. For the latest news about RE / MAX, please visit news.remax.com.
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SOURCE RE / MAX Canada
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