Real estate prices in Canada could rise dramatically
Against the backdrop of growing demand for housing, experts are voicing their predictions.
The Canadian Real Estate Association (CREA) predicts that Canadian home sales will peak in 2021. It is expected that 702,000 properties will be sold for the year, compared to 551,262 sold in 2020.
In February 2021, home sales have already increased by 6.6% compared to January. And if we compare it with the previous year, the growth was 39.2%.
Here, of course, the pandemic had its influence. During self-isolation, home for Canadians became everything. This has led to an increased desire among the population to own their homes, with those who already own property wanting to move into larger homes. And, for those who do, being close to work (which used to be a key factor in choosing a property) is no longer a priority. All this is compounded by low mortgage interest rates. The result is record activity in the real estate market.
There are all preconditions that the trend will continue in the near future. The Bank of Canada is in no hurry to raise the interest rate, but the country is already undergoing vaccination of the population, which means that soon we can expect the easing of restrictions — people will return to their jobs and immigrants will come to Canada again.
Such a trend cannot but affect prices. CREA expects property values to increase by 16.5%. Thus, the average home value in 2021 will be just over $665,000 CAD, and in 2022 will be even higher at $679,000 CAD.
The Canadian Association of Realtors predicts that housing demand will gradually decline in the second half of 2021 as well as in 2022, but will still remain high compared to previous years.
