forma condos.The real estate market will continue to heat up! With the recent surge in home sales prices, the Canadian Real Estate Association has made its latest forecast for the real estate market this year.Please Visit: forma condos to Get Your VVIP Registration Today!
CREA predicts that home sales will remain strong in 2021, reaching an all-time high this year, and average house prices will rise 16.5%, up from 12.9% last year!
According to CREA, home sales in Canada rose 6.6% in February from a month earlier, up 39.2% from a year earlier, reaching an all-time high for eight months in a row.
CREA predicts that number will continue to grow, with home sales expected to reach 702000 this year, up from 551262 in 2020, an increase of 27.3%.
The main reason prices are expected to rise this year is due to limited inventories in the market, with CREA noting that there is an “unprecedented imbalance between supply and demand” and that there is less than two months of inventory of homes available for sale.
In Ontario, for example, most markets have only a few weeks of current inventory. Many homeowners are cautious about selling their homes in these uncertain times.
CREA believes that Canada is now “almost all local market conditions are to some extent in favor of sellers.”
But by 2022, home sales are expected to cool gradually, and CREA estimates that sales will fall 12.6% to 614000 units in 2022 next year.
The decline is expected to affect all markets across the country as “the previous backlog of demand is depleted” and “the urgency to buy housing to survive the epidemic fades”, according to the forecast.
Sales will rise all the way this year, and so will house prices, but they will not only rise this year, but will continue next year.
In February, the national average house price was a record C $678091, up 25 per cent from last year’s average of C $570947.
CREA estimates that average house prices across the country will rise 16.5% from last year to C $665329, compared with C $679341 in 2022.
A 16.5% increase is scary enough, but CREA believes that, judging from the current monthly data, this forecast is actually quite conservative.
Compared with the country as a whole, prices in several popular markets in Canada will rise even more, with Ontario, Nova Scotia and Quebec having the highest expected increases of 21.2%, 18.4% and 16.6%, respectively.
BC province ranks fourth in the country with an expected increase of 10.2%, and the average house price is expected to rise to 861286 yuan this year.
Costa Poulopoulos, chairman of CREA, said: “the two major challenges that the Canadian housing market continues to face, but also the challenges we have been facing in recent months-the COVID-19 epidemic and insufficient supply, if we are lucky, potential sellers may be more at ease to list their homes in the short term.”
Therefore, for buyers who are worried that house prices are too high and fear that houses are getting more and more expensive day by day, they can wait a little longer, and prices may begin to level off by next year.
