Market Outlook 2020
Average Canadian home price expected to rise by 3.7% in 2020
- Increased consumer confidence could be a key factor affecting the housing market in 2020
- 51% of Canadians are considering a home purchase in the next five years, up from 36% at the same time last year
- Only two in 10 Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019
The highs and lows that we saw in the Canadian housing market in 2019 are expected to level out as we move into 2020. Once again, price increases are expected this year, with an estimated 3.7% increase in the average residential sale price.
While most markets surveyed across Canada experienced balanced price increases year-over-year from 2018 to 2019, some markets experienced higher-than-normal gains, including Ottawa (+11.7 per cent). The Ottawa market continues to be a sellers market.
Adjustment to the mortgage stress test has been good, and as the earning power of Millennials increases, it is anticipated that this group, in particular single Millennials and young couples, will drive the market in 2020. A recent Leger survey found that more than half (51%) of Canadians, especially those under the age of 45, are thinking about buying a property in the next five years.
The strong growth in Ottawa is expected to continue in 2020. The new LRT system is expected to impact development. As well, a shortage of supply combined with an influx of foreign investment money from the West Coast will support home prices.