The RE/MAX Canada teams across the country analyzed the 2020 real estate trends, combined with consumer sentiment studies to predict the 2021 housing market outlook.
In short, the 2021 Canadian housing market predictions look good. The real estate industry and Canadians feel confident in the sector for 2021. According to a recent Leger study conducted by RE/MAX Canada, half of Canadians (53%), are confident that the housing market will remain steady this year, and 52% of Canadians believe real estate is one of the best investment options in 2021.
The RE/MAX Canada Housing Market Outlook Includes:
- The housing supply shortage will continue, increasing prices for the year, challenging homebuyers to find and afford their ideal home.
- Average home prices are expected to increase between 4% to 6% this year.
- The trend in Canadians moving around the country will continue as 35% of RE/MAX brokers believe that these “Move-over” type of buyers will help drive the industry growth.
- 45% of RE/MAX brokers anticipate that consumers will continue to increase their space and look for a larger property. They believe this “Move-up” buyer trend, which accelerated in 2020, will also continue.
Isn’t COVID-19 Affecting the Housing Industry?
Despite the pandemic impacting consumers’ lives and industries, Canadians continue to feel confident in residential real estate. Earlier in the year, economists predicted a negative impact on home real estate, yet this did not happen.
Only 6% of Canadians sold their homes due to economic issues directly related to the pandemic, while 40% recognized the desire to renovate their homes in the last year. A further 29% of consumers realized they needed more living space, driven by Canadians under 35 years of age.
The Canadian homeowner’s needs changed drastically in 2020, and the trend of finding more space and a more desirable location will continue. Interestingly, Canadians were evenly split on whether they preferred urban, suburban, or rural living in 2020, according to the Leger study.
What Is the Outlook for Ottawa Real Estate?
The 2021 housing market in Ottawa will see many of the same Canadian trends, but more pronounced. A seller’s market will continue – driven by the low housing inventory and high demand from Canadians from all over the country. The industry believes that home inventory levels will improve to some degree, reducing some pressure on homebuyers who often experience frequent bidding wars characteristic in a seller’s market.
Move up buyers are typically families who will be the primary driver of growth, as we have seen in Ottawa in 2020. These buyers are looking for more living space for work, school, and adequate green space outside of urban areas. In the past, avoiding a long commute was highly desirable, and now it is no longer a priority for many homeowners in these pandemic times.
Prices will continue to increase beyond 2020’s performance. Expect higher prices beyond the average residential home price year to date December 2020 of $ 582,267 and $361,337, the average condominium price in 2020. RE/MAX predicts that Ottawa prices will outperform the Canadian trend with a +7% increase across all property types.
Looking to buy or sell a home in Ottawa in 2021 or do you want your questions answered? Contact the Susan Chell Team to take the next step.