Skip to main content

Royal LePage sees Canadian home prices rising 5.5% in 2021

Canadian real estate brokerage Royal LePage expects home prices to rise 5.5 per cent in 2021, building on unexpectedly strong growth this year, driven by a shortage of properties for sale and record low interest rates.

Royal LePage said the aggregate price of a home in Canada is set to rise year-over-year to $746,100 in 2021. The median price of a two-storey detached house and condominium are projected to increase six per cent and 2.25 per cent to $890,100 and $522,700, respectively. The aggregate home price is based on a weighted model that uses median prices and includes all housing types.

The forecast is at odds with others, including government-backed mortgage insurer Canadian Mortgage and Housing Corporation, which predicts price decline in 2021, and some of the country's biggest banks, which foresee more muted growth.

"The upward pressure on home prices will continue," supported by lack of supply to meet surging demand and policy makers promise to keep interest rates at record low, Royal LePage chief executive Phil Soper said.

The average Canadian home price rose more than 15 per cent in October from a year earlier to an all-time high, according to the Canadian Real Estate Association.

Lenders Royal Bank of Canada and Bank of Nova Scotia said in their fiscal 2020 annual reports they expect house price growth of 0.6 per cent over the next 12 months, citing economic uncertainties spurred by the coronavirus pandemic, weakness in condominium markets and constrained housing affordability.

Royal LePage expects the shift to larger homes, which has driven a surge in sales and prices of single-family houses this year, will moderate as "life returns to normal," easing some of the pressure on condo markets.

Condominium demand is expected to be healthy in most of Canada's biggest cities, except Toronto, where softer demand is seen continuing in the city centre, the group said.

Ottawa and Vancouver are expected to lead the country, with increases of 11.5 per cent and nine per cent respectively, while Calgary and Edmonton are set to lag with growth of 0.75 per cent and 1.5 per cent. Toronto prices are expected to rise 5.75 per cent.

Comments

Post a Comment

Popular posts from this blog

7 Ways to Make Your Home Cozier This Winter Without Spending

As the temperatures continue to drop, we'll all be spending more time indoors. There are countless ways to make your home feel cozier for the winter if you have extra money to spend, but if you're being mindful of your finances after the holidays, here are some ideas to help you do it without spending. Bring Out the Blankets As the temperatures drop, it’s time to bring out all of those extra throw blankets and quilts you have lying around in storage. Drape blankets over your couches, chairs, beds, and ottomans; fill a blanket ladder and display it in the corner of a room; or fold extra blankets and place them in the corner. Sticking to warm textures such as wool where possible will help to make the space feel cozy. Light Candles Lighting some candles around your home is one of the easiest ways to make your space feel cozy, and who doesn’t have a stash of candles sitting around somewhere in their home? Not only will the flickering light add a sense of warmth and charm, but your ...
Post a Comment
Read more

Bathroom Upgrade Options

Whether you're looking for easy, affordable changes or a major renovation, there are many ways to enhance a bathroom environment. Beyond the basics like decorative colour-coordinated accessories to match curtains, mats and towels, enhanced upgrades like a spa-inspired showerhead and a touchless faucet will add personal comfort and convenience. Depending on your budget, a total makeover might include new tiling. If so, consider a few hand-painted accent tiles to make your bathroom truly unique. More spacious projects might include the addition of a two-sink vanity or a soaker tub.  Bidets are also becoming more popular as they become more affordable. If you don't have the room to add a luxurious stand-alone bidet, some newer toiles are dual purposed, while others can be accessorized with an add-on set attachment for a comparable hygienic experience. No matter what your bathroom makeover budget may be, you can achieve a fresh transformation simply by making a creative paint selec...
Post a Comment
Read more

Apps That Make Selling & Moving Easier

You've probably heard the expression, "There's an app for that!" There does seem to be an app for every conceivable task, and real estate is no exception. If you're thinking of selling and moving this year, here is a list of app types to look for:  Maps - Google Maps is the most popular, but there are others. Mapping apps with satellite views are handy for checking out neighbourhoods.  Calendar - You probably use an online calendar. But, when you're moving, it makes sense to have a separate "moving calendar". There are many free calendar apps available.  Project management - There are some easy-to-use apps that help you stay organized during projects, such as getting your home ready for sale.  Mortgage calculator - Most bank websites feature online tools where you can test out scenarios and see how much you would pay each month.  Moving costs -  Most major moving companies, and a few home improvement centres, feature a moving cost calculator on t...
Post a Comment
Read more