As we wrap up what has been a historic year for real estate in the GTA, I have received a lot of questions regarding what to expect in 2021. Here is what the industry has to say:
RE/MAX Canada expects average residential prices to rise 4% to 6% in 2021!
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
RE/MAX Canada is anticipating healthy housing price growth in 2021, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices. Due to these factors, the 2021 RE/MAX Housing Market Outlook Report estimates a four to six per cent increase in the average residential sales price nation-wide.
We can expect to see interest rates remain extremely competitive and historically low according to the CBC and other industry experts:
“The cost of borrowing has plummeted during the pandemic, as the Bank of Canada slashed its rate to nearly zero back in March and April, and at its last rate decision in October took the unprecedented decision of telegraphing to the market that it plans to keep it there until 2023.”
“Mortgage rates hit a new low, with Canadian bank posting below 1% – HSBC has come out with a variable rate mortgage at 0.99 per cent, which industry watchers believe is the first such posted offer below 1 per cent ever in Canada.
The lender announced a promotion on Friday offering the rate to high-ratio, insured mortgages only — meaning it is only for buyers with less than 20 per cent down, who will then have to pay to insure their mortgage, which protects the lender in case of default. The offer is for a five-year closed term — though the rate, of course, may vary up or down over that time, as it’s tied to the bank’s prime lending rate.”
Mortgage interest rates will continue to influence demand for housing in 2021!
Here is a look at how average residential home prices played out for many of the major Canadian markets in 2020. This chart also includes a a prediction of average home prices at the end of 2021!