As assessed in the RE/MAX Fall 2021 Housing Market Report Outlook, housing supply sparsity is the prevailing pattern in toronto real estate. Just like the rest of Canada, where the seller’s market conditions are existing in 26 of 29 regions.
These circumstances are expected to persist in the fall, especially as COVID-19 constraints continue to ease. Open house activity this fall will continue to be a good measure of market strength and will indicate the level of confidence in the market between both sellers and homebuyers.
Youthful families are anticipated to continue driving demand in Toronto’s housing market. Trade-up and first-time buyers are expected to be the dominant prospects in the region.
Detached-single homes have seen the biggest increase in residential sale prices on average, up to 14.6% year on year. In the meantime, townhomes witnessed a price growth of 10.6% on average, and condo prices grew by 4.2%.
Compared to 2020, total unit sales across all property types have increased by 28% in 2021. Studying the bigger perspective, real estate in Ontario has witnessed one of the highest single-detached price gains in the state. With 13 out 16 Ontario housing markets assessed in the report seeing a growth between 20% and 35.5% year on year.
The markets that went through a price growth below 20% are Mississauga (+19.7%), Thunder Bay (+17.1%), and Toronto (+14.6%).
While townhomes and condos in smaller suburban Ontario housing markets like London, Kitchener, North Bay, Southern Georgian Bay, and Peterborough. The predicted price outlook for the remaining year ranges from a 2% price drop in NorthBay to an increase in other regions between 2% and 15%.
Housing market trends
The situation in Toronto’s housing market is seen throughout the country. As single-family homes see the highest price increase year on year in 2021, growing between 6.8 and 27.3 % throughout 26 or 29 markets that were surveyed.
And just like the real estate market in Toronto, the activity in this property segment is being pushed by a powerful demand from young families, this trend is expected to continue across the fall this year.
In the remaining months of 2021, the residential price in Canada, across all housing types is expected to increase by 5% on average.
Housing activity during the pandemic has remained strong, so it’s no surprise that the outlook for the year remains positive continuing on an upward path. This is fantastic news for homeowners and their equity. But is challenging for new buyers who’ve been displaced and priced out of the market.
That said, educating Canadiens using a practical real-world perspective is important. Telling them about what is affecting the Canadian housing market currently matters. Because factors like economic stimulus, low-interest rates, a higher savings rate, homeowners being too afraid to sell, increased home-buying budgets, and no sufficient new construction are all contributing factors affecting market conditions at present.
In the past, the Canadian housing market has granted homeowners valuable long-term returns and sound financial security. But the rapid growth experienced recently is certainly a cause for concern.
Research shows detached single home price increase may be starting to level off in a few urban centers, but prices continue to grow in smaller communities and cities that were a hub for affordability in the past.
Real estate has certainly seen a boon in the Canadian economy before the pandemic and during its spread. To attain the long-term health of Canada’s housing market, addressing the housing supply shortage is important and must be acknowledged.
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