RE/MAX releases Canadian housing market outlook 2020
Increased consumer confidence could be a key factor affecting housing market
• 51% of Canadians are considering a home purchase in the next five years, up from 36% at the same time last year
• Only two in 10 Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019
RE/MAX is calling for a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected next year, with an estimated 3.7% increase in the average residential sale price.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7%), Windsor (+11%), Ottawa (+11.7%) and Niagara (+12.9%).
As more Canadians have adjusted to the mortgage stress test and older millennials move into their peak earning years (read about Millennials and real estate), it is anticipated that they will drive the market in 2020, particularly single Millennials and young couples. It is important for millennials and young couples to be aware of the first time home buyer incentives. A recent Leger survey conducted by RE/MAX found that more than half (51%) of Canadians are considering buying a property in the next five years, especially those under the age of 45.
Liveability continues to be important to Canadians
• 62% of Canadians would like to live near shopping/dining locations
• 59% would like to live closer to green spaces
• 30% would like to live closer to work
• 36% would like to live closer to public transit
Mississauga Housing Market Outlook 2020
Seller’s market to prevail, prices to increase 5%
The Mississauga housing market will lean toward sellers market in 2020 across most property types, with the average residential sale price expected to rise by 5% thanks to increased consumer confidence and historical price appreciation.
By definition, a Seller’s Market is when the number of buyers wanting homes exceeds the supply or number of homes on the market. Buyers may have to pay more and make decisions quickly.
The Mississauga housing market experienced steady growth after taking a dip in 2017. Affordability remains a concern for home buyers with the tightening of inventory and the corresponding upward pressure on pricing. This challenge will continue into 2020.
13% of the new housing starts in the Greater Toronto Area in 2019 took place in Mississauga according to Canada Mortgage and Housing Corp. This construction trend is expected to continue in 2020, bringing some relief to the inventory shortage in the region, and a corresponding moderation in the high single-digit price increases in Mississauga’s condominium sector. In fact, there are builder new condo buildings finishing completion in 2020 with more in the pipeline.
Factors behind Mississauga Housing Market Outlook 2020
Easy access to Toronto’s downtown core via Mississauga’s main thoroughfares and GO Transit will continue to have an impact on Mississauga as a top choice for investors & other buyers in the market. The hottest neighbourhood for Mississauga home sales is real estate around Square One, due to the many affordable condo units found here. Lisgar homes, Churchill Meadows homes are also in high demand due to the affordable newer homes (less than 20 yrs old) that require little maintenance. Clarkson homes are also a popular choice for buyers thanks to its relative affordability compared to the surrounding area, as well as easy access to GO Transit and the QEW.
First-time home buyers are expected to propel the Mississauga housing market in 2020, attracted to the area by the high concentration of relatively affordable condos found here.
Content Courtesy: REMAX’s 2020 Housing Market Outlook
