Fall 2020 Remax Real Estate Market Report
Demand for cities outside of the GTA is growing. With buyers looking for more outdoor space and square footage, these hot-spots are experiencing a shortage of listings & seller’s market conditions.
Fall 2020 Remax Real Estate Market Outlook
Canadian housing market is expected to remain active for the remainder of 2020 due to pent-up demand & low inventory levels.
- Canadians are showing more interest in suburban and rural homes for sale due to shift in work & lifestyle dynamics
- 32% of Canadians no longer want to live in urban centres & are opting for rural or suburban communities
- Canadians are almost equally split in their confidence in Canadian housing market
The Remax Fall 2020 Canadian Housing Market Report points to a strong market for the rest of the year. It is expected that the average residential sale price in Canada could increase by 4.6% during the rest of the year.
The COVID 19 pandemic has made many Canadians to reassess their housing requirements
The report suggests that Canadians under the age of 55 no longer want to live in large urban centres and would rather opt for rural or suburban communities. This has to do with a shift to “work from home” and the comfort of being able to do some physical or leisure activity right at home. According to a Leger survey for Remax, 44% of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a big backyard. On the other hand, older Canadians find it important than ever to live in a community close to hospitals and clinics.
Most Canadian housing markets experienced a significant drop in activity during March & April of this year. However, prices have remained stable across the country. Heading into fall, 50% of RE/MAX brokers and agents anticipate a modest increase in average residential sale prices.
Key insights – 2020 Fall Canadian Market Survey:
48% of Canadians would like to live closer to green spaces
48% of Canadians say its more important than ever to live in a community close to hospitals and clinics
33% of Canadians would like more square footage in their home and have realized they need more space
44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)
Ontario Housing Market
Ontario home buyers & sellers are currently feeling more comfortable with engaging in the market. Activity is expected to remain steady in the fall, with modest price increases of up to 6% in some regions.
Fall 2020 Remax Real Estate Market Outlooks
Mississauga Housing Market
Like many GTA regions, the Mississauga housing market experienced a slowdown in mid-March, with all activity decreasing by as much as 80% and not picking up again until early to mid-April. The demand has resulted in multiple-offer scenarios, putting significant upward pressure on prices.
With demand exceeding supply across the Mississauga housing market and the GTA as a whole, it is expected that prospective buyers will continue engaging in the market aggressively into the fall season. A 5% increase in average residential sale price is expected in Mississauga for the remainder of the year.
Brampton Housing Market
The Brampton housing market experienced a slowdown in mid-March following the initial impact of COVID-19. However the decline was short lived, lasting for approximately 30 days before home sales began to pick up again. This activity is expected to continue on into September, with Brampton currently experiencing a strong seller’s market, and demand significantly outpacing supply in the region.
It is expected that the Brampton housing market will see average housing prices increase 5% through the remainder of the year.
Toronto Housing Market
Buyers have returned to the Toronto housing market after a brief but dramatic decline in activity at the start of the pandemic. Activity resumed in May and June and Toronto is currently experiencing seller’s market conditions, with few listings in most areas, demand continuing to exceed supply, and low interest rates enticing more buyers into the market.
Again, a 5% increase in the average residential sale price is expected in the Toronto housing market for the remainder of 2020.
Hamilton-Burlington Housing Market
Burlington home sales in May and June 2020 surpassed year-over-year levels. Hamilton and Burlington are currently experiencing strong seller’s markets, with up to 80% of all available inventory selling out each month. Burlington and Hamilton housing market will see average price increase 3% to 4% through the remainder of the year.
Pent-up demand causing sellers’ market-like conditions in recreational markets
When it comes to recreational property markets in Canada, Muskoka, Peterborough and the Kawarthas, and Whistler are all experiencing sellers’ market conditions, with pent-up demand and low inventory driving a modest increase in pricing. According to RE/MAX brokers, average prices in these recreational markets are estimated to remain stable for the remainder of 2020.
Canada’s luxury real estate continues to thrive
Canada’s overall luxury market has remained strong throughout the pandemic.
When it comes to the hottest Canadian housing markets of Toronto and Vancouver, the luxury segment here is considered balanced. The luxury segment in secondary markets such as Hamilton are seeing a slight uptick in activity, with high-end buyers also seeking more square footage and larger properties outside of city centres. Hamilton has experienced an increase in buyer interest from residents from Brampton and Mississauga looking to relocate to the region.
Blog Content Credit: REMAX Fall 2020 Canadian Housing Market Report.