Canadian Real Estate Outlook for 2020
The Canadian real estate market has seen its fair share of ups and downs over the last few years. With interest rates likely to stay low in 2020, the housing market will continue to rally throughout the first half of next year. These early predictions are great news for any potential buyers looking to make a move in 2020. The following are some of the trends the Canada Mortgage and Housing Corporation (CMHC) anticipate in seeing in 2020 and even into 2021.
Home Sales Will Gain Momentum
The real estate market took a hit in 2018 and has shown signs of a rebound in 2019. British Columbia and Ontario are expected to see surges in property sales into 2021 due to the increase in disposable income within the two provinces. As some of Canada’s key markets continue to accelerate, the global home price in the marketplaces will continue to rise as well.
Home Prices Will Continue Upward
Just like home sales, home prices have also taken a hit over the last two years. The decline in prices means a bounce back is expected to hit the market quicker than many anticipated. Prices will strengthen in Ontario and Quebec over the next year, with British Columbia expected to see growth more towards the end of 2020 and into 2021. The CMHC believes that all three provinces will drive home prices up while the other provinces through the regions will only see “modest gains.”
New Home Building Will Stabilize
In 2017, the home building market hit a 10-year high but quickly declined. The number of homes constructed over the last year is expected to happen in both 2020 and 2021 and is in line with the historical average for annual home construction across the region. Canadians are positive that the construction industry will see an increased pace in home building but that the growth will plateau while the CMHC believes that an active labour market and increased incomes will not positively impact homebuilding as much as they expect.
With the Canadian market in full rebound mode, it appears there will be a huge upswing over the next couple of years. If you are interested in taking advantage of a rebounding market, please contact Mehran Redjvani at (647) 206-8564 or via his brokerage site.