Here's how much experts say home prices will go up across Canada next year
People looking to sell their homes in 2020 could be in for a treat of the cold hard cash type, according to real estate analysts. They could also be primed for disappointment over less-than-stellar price appreciation.
It all depends on where they live.
Royal LePage just released its annual Market Survey Forecast for the year ahead, giving buyers and sellers alike a glimpse of what should soon be impacting their local market and how.
Overall, Canadian home prices are expected to see "healthy appreciation" by the end of 2020, though some types will fare better than others.
The condo market, which has seen prices increase by a whopping 48 per cent on average since 2014, should finally slow down a bit in terms of price appreciation thanks to the millennial generation getting older.
“Peak millennials are now in their 30s,” Phil Soper, Royal LePage president and CEO, said in a statement. “This generation is now eyeing the suburbs. We predict that interest in detached homes is reborn.” https://t.co/W0wzCgR977 pic.twitter.com/MQjuAUqAIV— Invest Oshawa (@InvestOshawa) December 12, 2019
"Most of Canada is seeing a shift in demand from condominiums to detached houses as peak millennials, those between the ages of 26 and 32 and the largest cohort within the powerful millennial consumer demographic, seek houses to accommodate growing families," reads the report.
"Now this demographic is looking for more space and a yard. The resulting demand will put upward price pressure on detached homes," it continues.
"However, condominiums will remain in demand in regions where affordability restricts choice of housing types."
Ah yes, Toronto and Vancouver.
Condo prices are still expected to rise by 6 per cent in The 6ix throughout 2020, hitting a median of $600,000. Detached homes in Toronto should increase about 4.5 per cent, year over year, to hit an average price of $1,027,200.
The Greater Vancouver Area will similarly see both house and condo prices go up, but not by as much, at 1.25 and 3 per cent respectively.
By the end of 2020, the median price of a standard two-storey home in Vancouver should be around $1,460,700, while a condo will cost around $666,900.
Calgary and Edmonton, meanwhile, should see what realtors call "a gradual return to balance" amidst energy sector woes and a struggling job market.
The Albertan cities are expected to see aggretate prices rise by just 1.5 per cent and 1 per cent, respectively, with condos in Calgary going for just $267,500.
The Greater Montreal Area fared best among all major Canadian cities thanks to a strong job market, stable interest rates and "very few clouds on the horizon that could slow the Quebec and Montreal economy in the year ahead."
Royal LePage forecasts that the median price of a two-storey home in Montreal will increase by 6 per cent, year-over-year, to hit $581,300 in 2020. Condo prices will similarly rise by about 5 per cent to reach $355,100 over the same period of time.
"At this pace, the Greater Montreal Area real estate market will enter its fourth consecutive year of price appreciation above the 4 per cent mark," reads the report.
The aggregate price of a home in Canada is forecasted to rise 3.2 per cent by the end of 2020 to $669,800, with condos going for $506,100 and detached houses for $785,400.
"Our 2020 national forecast is based on a continuation of healthy economic conditions," said Royal LePage CEO Phil Soper in a release on Thursday.
"Paradoxically, a slowdown in economic growth could cause us to revise the outlook upward... Falling rates normally encourage new housing demand," he continued.
"This would mean further upward price pressure in regions where employment remains healthy, which is most of the country. That window to lower or flat home prices is closing or has closed for most Canadians."
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