14 Dec 2020 Royal LePage Market Forecast
Toronto, ON, December 12, 2019 –According to the Royal LePage Market Survey Forecast, Canadian home prices are expected to see healthy appreciation by the end of 2020, driven by low single-digit appreciation in both the condominium and detached home segments. The decline in high price appreciation in the condominium segment, in recent years, reflects a shift in millennial demand towards houses and is expected to reinvigorate sales activity in the suburbs. The aggregate price of a home in Canada is forecast to rise 3.2 per cent year-over-year to $669,800 in 2020, with the median price of a condominium and two-storey detached house projected to increase 3.6 per cent and 3.1 per cent to $506,100 and $785,400, respectively.
“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.”