One of the things that everyone will agree on is that seeing moderate increases in home values is a good thing for one and all. We stress the word moderate there, because anything more than incremental gains in the values of homes has the potential to be harmful for those who are ready to enter the housing market for the first time. A decline in median home prices is never a good thing for anyone, and that’s true on everything from the individual level right up to the prosperity of the country as a whole.
From the perspective of a real estate agent, it’s a little different than the way the consumer will see it all. Keep in mind though that most real estate agents are homeowners themselves. In that scenario, you’ve got a double vested interest in seeing national growth in home values. But with more value in homes there’s more value in the business that brings more into the profession. That’s a double-edged sword of sorts, as it becomes an increasingly competitive business.
That makes our online real estate lead generation system an excellent choice for realtors who need a hand being the competitor they want to be when it comes to growing a real estate business. You’re put more directly in touch with would-be clients who are legitimately looking to buy or sell a home in your area of the country.
Clients that will likely being paying a little more for that same home in 2021 it would seem, and that’s where we’re going to focus today.
Perfect Moderate Gain
Our friends at Royal LePage are predicting that home prices in Canada will rise some 5.5% in 2021, and that will be attributable to building on unexpectedly strong growth this year, driven by a shortage of properties for sale and record low interest rates.
Adding further that the aggregate price of a home in Canada should rise year-over-year to $746,100 in 2021. The median price for a 2-storey detached house and condominium are projected to increase 6% to $890,100 for the detached houses and $522,700 for the condos.
Aggregate home prices are based on a weighted model that uses median prices and includes all housing types.
It needs to be said, however, that the government-backed mortgage insurer Canadian Mortgage and Housing Corporation is predicting a price decline in 2021 and more than a few of the country’s biggest banks are foreseeing growth that’s a little more repressed. As is almost always the case though, those who do real estate full time and exclusively tend to be a little more in the know and correct with their predictions on housing in Canada.
In conclusion with that, we should see upward pressure on home prices continuing, and that reality should be buoyed by supply continuing to not demand all across the country as a whole, and policy makers keeping interest rates low – which is almost certainly going to happen given the current economic malaise brought about by the COVID pandemic.
15% Average Rise
The average Canadian home price went up more than 15% in October from the same time the year previous (2019), and according to the CREA that’s a record gain.
RBC and the Bank of Nova Scotia have presented 2020 annual reports where they expect house prices to grow 0.6% over the next 12 months, and that constrained housing affordability is the only impediment that’s likely keeping that number from being higher.
Buyer demand for condos is expected to be healthy in Canada’s biggest cities, but with one exception – Toronto. It’s the only major metro area where softer demand is seen continuing in the city centre.
Ottawa and Vancouver are the frontrunners for city-specific rises in median home values, with increases of 11.5% for the country’s capital and 9% for Vancouver. Calgary and Edmonton are set to have much less noticeable growth – 0.75% for Cowtown and 1.5% for the Albertan capital. Toronto prices? Think more along the lines of 5.75% gains.
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