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Will Ontario House Prices Drop in 2021?
Dated: February 18 2021
Will Ontario House Prices Drop in 2021?
Despite the global pandemic that took over the world in spring 2020, the Canadian real estate market saw a record breaking high with 551,392 homes trading hands over the course of the year, a 12.6% increase over 2019 sales, according to CREA. Not only did the Canadian housing market hit record highs, but it also hit some record lows with the active residential MLS listings falling below 100,000 for the first time in over 30 years.
Additionally, the Bank of Canada has lowered the bench-mark 5 year interest rates for mortgages to all-time lows making it easier for buyers to qualify for homes and has committed to these low rates until at least 2023. With these trends, the Canadian real estate market begins this year with high demand and low supply, which means that CREA is predicting that house prices in 2021 will increase across the nation.
Ontario’s Real Estate Forecast
According to the network of brokers at RE/MAX, the province of Ontario is predicted to see an increase in housing prices while their sales activity remains relatively steady. This is due to there being an influx of buyers looking to move out of the city centres and into homes in more rural areas that have more space and bigger yards. COVID-19 has had a direct influence on these trends as more people now work from home or have fewer work commitments that were tying them to the city. The demand of people looking to trade in for a more desirable single family home is higher than the supply that is available in these rural areas, which directly influences the increased cost as multiple families bid on available properties.
In 2021, CREA is predicting there will be approximately 221,220 homes that will exchange hands, which is down from the projected 228,665 homes for 2020. However the average price of a home was $708,377 in 2020 and is expected to grow over 16% and hit an average of $823,656 in 2021. As the demand for areas outside of the GTA grows, there is an inevitable increase in the prices for these properties, such as homes in the Niagara Region.
Niagara Region’s Real Estate Forecast
According to RE/MAX the migration of buyers from the GTA will continue strongly into 2021 having positive impacts on the real estate market in the Niagara Region. The region as RE/MAX predicts will see the average home price grow to $597,181, which is about a 12% increase due to out of town homebuyers. If you take a look at the MLS Home Pricing Index below courtesy of CREA, it is an indicator of housing prices and trends from December 2019 - December 2020. It is clear that the growth the Niagara Region is seeing, particularly for single family homes, has been very consistent and is continuing to rise heading into 2021.
Looking to Buy a Home in Niagara Region? Contact Davids & DeLaat Today.
If you want to take advantage of the current house pricing before it goes up and are looking to purchase or sell property in the Niagara Region, the experienced team of real estate professionals at Davids & DeLaat are waiting to help you. We pride ourselves in putting our customers and their families' needs first. We are standing by to help you find the perfect home in one of our twelve amazing municipalities. Take a look at our available listings in the Niagara Region today to get started or call us to speak with one of our real estate agents today.
Helping people buy and sell real estate is Shawn’s passion. Now in his 20th year, he’s proud to be in the top 1% of all realtors for sales production in the entire Niagara region. Shawn’s outgoi....
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