14 Dec 2020 Royal LePage Market Forecast
2020 Royal LePage Market Forecast
Toronto, Ontario, 12 December 2019 – According to the Royal LePage Market Survey Forecast, Canadian home prices are expected to rise by the end of 2020, with low single-digit increases in both the condominium and detached home segments.
The recent decline in high price appreciation in the condominium segment reflects a shift in millennial demand for houses and is expected to reenergize sales activity in the suburbs. The average[1] price of a home in Canada is expected to rise 3.2% year on year to $669,800 in 2020, with the median price of a condominium and two-story detached house rising 3.6% and 3.1%, respectively, to $506,100 and $785,400.
“Ottawa continues to be an affordable city with great jobs,” said Kent Browne, broker and owner, Royal LePage Team Realty. “Inventory is tight and there are few rental units available, which puts pressure on the overall real estate market. We are seeing multiple offers on homes between 300K and 500K and we expect this trend to continue into the new year.”
Browne added that there is a lot of condominium construction in the city including a new 45-storey condominium, the tallest in the city.
“Without more supply, we can expect to see home prices continue to appreciate in mid-single digits,” said Browne. “The federal government’s First-Time Buyer Incentive would have benefited more people just a few years ago. In 2020, a typical home will sell for more than $500,000, which is the program’s cap.”
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