Canadians on the move: Not an exodus, but the re-location trend in Canada is real
RE/MAX Canada expects average residential prices to rise four to six per cent in 2021
- 35 per cent of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45 per cent 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 per cent) are confident that Canada’s housing markets will remain steady in 2021
- 52 per cent of Canadians believe real estate will remain one of the best investment options in 2021
TORONTO AND KELOWNA, BC, Dec. 1, 2020 /CNW/ – 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. 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’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario–Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”
Despite the disruption of the virus, consumers are feeling optimistic, according to a Leger survey conducted on behalf of RE/MAX Canada, with 52 per cent of Canadians eyeing real estate as one of the best investment options in 2021, and expressing confidence that the market will remain steady next year.
An increase in housing market activity that came post-lockdown during the first wave of the pandemic last summer is a good indication of what may lie ahead. Despite a second round of lockdowns this fall, RE/MAX brokers and agents across Ontario-Atlantic and Western Canada continue to be optimistic about the housing market in 2021.
“We are likely to see a very strong start to the new year when it comes to housing,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Region. “Despite the turmoil we’ve all weathered, Canadians remained on the move, and as we saw in our Fall Outlook Report, many suburban markets were flooded with new buyers moving from urban areas. This put a strain on already stretched supply levels, prompting competition among buyers and rising prices. As long as we have a supply issue, prices will be strong, and we anticipate this trend to continue in 2021.”