2020 Market survey forecast

2020 MARKET SURVEY FORECAST

Canadian real estate market to appreciate 3.2%

Similar price growth in both condo and detached segments expected by Q4 2020

Sarah Louise Gardiner, Director of Communications

By the end of 2020, Canadian home prices are expected to see healthy appreciation in price year-over-year. The positive outlook for the nation’s real estate market is based on healthy buyer demand and competition, largely driven by a segment of potential homeowners who postponed purchases at the advent of the mortgage stress test in January 2018, now entering the market. Sales activity in the suburbs will be reinvigorated by the recent shift in millennial demand away from condos and towards houses. Another significant driver is Canada’s healthy immigration rate, and newcomers to the country are expected to purchase one in every five homes on the market over the next five years.

Price data, which includes both resale and new builds, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian valuation company. Aggregate home price is based on a weighted model using median prices and includes all housing types.

Greater Vancouver

Sales picked up significantly in the fall of 2019, and buyers are starting to return to the Greater Vancouver real estate market. Buyer momentum, combined with low inventory for quality listings, is expected to put upward pressure on home prices.

Greater Toronto Area

Low supply and a growing population will continue to create tight market conditions affecting home prices in the Toronto core and Greater Toronto Area in 2020. Richmond Hill and Markham have shown signs of a recovery while areas closer to the city are showing significant momentum.

Greater Montreal Area

Positive economic indicators continue to support a healthy real estate market, with the Greater Montreal Area reflecting the highest appreciation rate among regions for 2020. Strong demand will continue to favour sellers, reducing inventory and pushing prices upward across the region.

Ottawa

Home prices in Ottawa are forecast to cross the halfmillion dollar mark in 2020. Stability in the government sector and employment growth in the high-tech sector will continue to benefit the area’s real estate market.

Halifax

Strong population growth is putting pressure on both the real estate and rental markets, leading to home price increases. Tight inventory is compelling buyers to adjust to increased competition as consumer confidence drives the market.

Calgary

Signs the local market has touched its price floor and is gradually returning to balance are supported by increased net migration and new jobs. More buyers should enter the market this year, motivated by tighter vacancy rates.

Winnipeg

Population growth will continue to fuel home sales in Winnipeg as immigration continues to be a strong driver in the real estate market. Affordability and the region’s expanding tech hub continue to appeal to newcomers.

Edmonton

A modest price increase is expected, as well as a healthy gain in sales activity, as Edmonton moves into a more balanced market. Positive indicators from 2019 included increasing sales, lower inventory, and quarter-over-quarter price stability.

Regina

Oversupply of listings in Regina’s market began to diminish in 2019 and potential buyers are realizing now is the time to enter the marketplace. An increase in demand is anticipated as the Saskatchewan Government continues initiatives to attract more newcomers.

Learn more

rlp.ca/market-forecast