Condo news toronto . House prices will rise by 5.5%. Canadian real estate agency Royal LePage expects to be driven by a shortage of unsold properties and historically low interest rates.
This forecast is not consistent with other predictions. The Canadian Mortgage and Housing Corporation (Canadian mortgage and Housing Corporation), a government-run mortgage insurer, predicts that house prices will fall in 2021. Meanwhile, some of Canada’s biggest banks are forecasting weaker growth.
Phil Soper, chief executive of Royal LePage, said upward pressure on house prices would continue as the market did not have enough supply to meet the surge in demand and the government promised to keep interest rates at record lows.
Average house prices in Canada rose more than 15% year-on-year in October, an all-time high, according to the Canadian Real Estate Association (Canadian Real Estate Association).
Royal Bank of Canada (Royal Bank of Canada) and Fengye Bank of Canada reported in the fiscal year 2020 that the COVID-19 epidemic will lead to economic instability, a weak apartment market and limited housing affordability. they expect house prices to rise by 0.6% and 0.4% over the next 12 months.
Royal LePage predicts that as “life returns to normal”, pressure on the apartment market will ease and demand for single-family homes will ease. Its high demand has driven sales and prices of single-family homes to soar this year.
With the exception of Toronto, demand for apartments in most of Canada’s big cities is expected to remain healthy, and demand in downtown Toronto is expected to continue to weaken, the group said.
The gains in Ottawa and Vancouver are expected to lead Canada, rising 11.5 per cent and 9 per cent respectively, and house prices in Toronto are expected to rise by 5.75 per cent. Calgary and Edmonton will be among the lowest in Canada, with increases of 0.75 per cent and 1.5 per cent respectively.