Bolstered by increased consumer confidence, the Canadian housing market will likely enjoy healthy growth in 2020, with RE/MAX predicting average residential prices to increase by 3.7% over the year.
As much as 51% of Canadians are planning to buy homes in the next five years, RE/MAX added. This was significantly above the 36% proportion seen during the same time last year.
Among the major drivers of this upward trend are specific Ontario regions enjoying greater-than-normal price increases – namely, London (up 10.7% from 2018 to 2019), Windsor (up 11%), Ottawa (up 11.7%), and Niagara (up 12.9%).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions still seeing double-digit gains,” RE/MAX of Ontario-Atlantic Canada executive VP and regional director Christopher Alexander stated.
“Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”
The Greater Toronto Area is also expected to contribute to 2020 gains, owing to sustained economic growth, declining unemployment rates, and improving affordability conditions. The projected average price increase in the region next year is 6%, amid a 12% upward surge in sales transactions from 2018 to 2019.
“While Toronto is experiencing its ‘busiest’ construction season ever, housing supply still falls short of the demands of the city’s rapidly growing population,” the RE/MAX report added.
An aging population will also swing market dynamics in favour of Canadian millennials, who are now expected to enter their “peak earning years.” This demographic “will drive the market in 2020, particularly single millennials and young couples.”