2020 was unique for the Canadian real estate market. The pandemic slowed the market for a brief period at the start of the spring market and then things really picked up. We continue to see rising prices and a brisk market.
Can we expect to see this continue going forward?
According to Vancouver is Awesome today, this is what’s next for Canada’s Real Estate Market.
Five key points to consider…
1. A steady increase in home prices
“Royal LePage… citing limited inventory and unmet demand as the major market drivers. The company is predicting a 9% rise in Vancouver…”
2. Detached homes will be in high demand
“Young families looking for more space, more home offices, and places to entertain once the pandemic passes are expected to drive the demand for detached homes to new highs…For sellers, this is big news. It will be a seller’s market in most Canadian cities this year, and homeowners looking to downsize can expect to see a lot of interest in their detached homes… largely due to the high demand for more space and low-interest rates.”
3. Monthly home sales numbers will fluctuate less
:The CREA expects sales volumes to surge 7.2% to around 584,000 in 2021, but that total number will very likely be more evenly spread out over the year than in 2020.”
4. Mortgage rates will remain depressed
Interest rates remain low when The Bank of Canada wants to encourage spending and stimulate the economy, and given the challenges Canadians have faced resulting from the pandemic, that’s exactly what they intend to do. “Canada’s economic recovery will continue to require extraordinary monetary policy support,” the bank said in October 2020. “We remain committed to providing the monetary policy stimulus needed to support the recovery.”
5. A potential rental resurgence could change trends
“Many people moved back home with family when the pandemic began, but don’t expect that trend to stay around forever. When renters return to major city centres, investors should reenter the condo market, or at the very least be less inclined to sell. It may take until the end of 2021, but keeping an eye on where renters are choosing to live is a great way to tell where condo prices are headed in 2021 and beyond.”