15 Apr National Home Prices to Show Resilience in 2020
According to the Royal LePage House Price Survey and Market Survey Forecast released April 14, 2020, the aggregate price of a home in Canada is expected to remain stable through the COVID-19 pandemic.
Below are some points from the Royal LePage House Price Survey and Market Survey Forecast:
- Best case scenario forecast shows Canada’s aggregate home price could grow 1% by the end of 2020
- If the pandemic continues to restrict business activity through late summer, a national home price decrease of 3% is expected by the end of 2020
- The aggregate price of a home in Canada rose 4.4% year-over-year in Q1 2020
- High demand and low inventory in Toronto, Montreal and Ottawa fuelled rising home prices
Low inventory and high demand in the first quarter of 2020 put significant upward pressure on home prices. The aggregate price of a home in Ottawa increased 8% year-over-year in the first quarter of 2020, crossing the half million dollar milestone for the first time to $502,808. If business activity resumes by the end of the second quarter, Ottawa may see a year-over-year gain of 2.5% to its aggregate home price by the end of 2020, to $506,500. If business activity resumes in late summer 2020, the region’s aggregate home price is expected to remain flat at $494,100.