Canadian Housing Market Outlook, Fall 2021
Monday Oct 11th, 2021
CANADIAN HOUSING MARKET OUTLOOK, FALL 2021
October 6th, 2021
Canadian Housing Market Expected To Remain Strong This Fall, Despite Delta Variant, Say Re/max Brokers And Realtors
Young families driving demand for single-detached homes in cities across the country.
- Canadian housing market prices are anticipated to increase by 5% in the remaining months of 2021, according to RE/MAX brokers and agents.
- 26/29 major Canadian housing markets analyzed are seller’s markets, driven by lack of supply and high demand.
Toronto, ON and Kelowna, BC, October 5, 2021 – Early indicators from RE/MAX brokers and agents across the Canadian housing market suggest steady activity for the remainder of 2021. According to the RE/MAX Canada 2021 Fall Housing Market Outlook Report, RE/MAX brokers and agents expect the average residential sale price for all home types could increase by five per cent from now until the end of the year.
Single-detached homes experienced the biggest price gains when comparing 2021* to 2020 data, rising between 6.8 and 27.3% across 26 markets surveyed in the report. RE/MAX brokers and agents expect this trend to continue into the fall, driven by strong demand by young families.
Regional Canadian Housing Market Overview
High housing prices, driven up by low supply and high demand, have created challenging conditions for many homebuyers across Canada, especially in cities such as Toronto and Vancouver. However, affordable options still exist for homebuyers who are considering alternative markets, thanks to their continued ability to work remotely. RE/MAX brokers have reported this trend in Edmonton and Calgary, where buyers are leveraging increased purchasing power thanks to local housing affordability coupled with lower interest rates. RE/MAX brokers and agents anticipate this trend to continue through the remainder of 2021.
When comparing activity year-over-year (YoY) average sale prices across single-detached homes, condos and townhomes, British Columbia’s Nanaimo, Victoria and Vancouver experienced significant price growth, at 23%, 19.1% and 16.4%, respectively. Nanaimo also saw one of the largest price surges in its condo and townhome segments when compared to other Western Canada regions, with average condo prices currently sitting at $343,713 (a 17.6% increase YoY), and townhomes at $511,549 (a 65.8% increase YoY). In Calgary and Regina, the fall outlooks are relatively status quo, with prices expected to remain flat in Calgary and up one per cent in Regina. Meanwhile, Edmonton, Saskatoon, Vancouver, Victoria, Winnipeg, and Nanaimo are expected to see price gains ranging between four and nine per cent through the remainder of the year, according to RE/MAX brokers and agents.
Unsurprisingly, Ontario has seen some of the highest average residential price increases across single-detached homes in the country, with the majority of regions (13 out of 16), experiencing increases between 20 and 35.5% YoY. The outlier markets that experienced price increases below 20% include Toronto (+14.6%), Thunder Bay (+17.1%) and Mississauga (+19.7%).
The condo and townhome segment in all of these regions has also performed well, with smaller and more suburban markets such as Kitchener, North Bay, London, Peterborough, and Southern Georgian Bay seeing a higher surge YoY. The estimated price outlook for the remainder of the year ranges from a two-per-cent price decrease in North Bay, to increases across the other regions ranging between two and 15%.
Much unlike some regions in the West, housing market activity in Atlantic Canada remained persistent YoY, with Halifax and Moncton seeing significant price increases across all property types. This trend is expected to continue for the remainder of 2021. The price of single-detached homes in Halifax increased 24.3% YoY, from $402,484 to $500,147. Meanwhile, Moncton prices rose from $233,676 to $282,886 – up 21.2% YoY.
According to RE/MAX brokers and agents, the condo and townhome markets in Halifax, Saint John and Moncton condo saw prices surge between 12.5% and 48.9% YoY. Moncton in particular is expected to continue strong, with one of the highest price outlooks for the remainder of 2021, between 12 and 15%. Saint John is expected to see more-tempered price growth, ranging between 1-3% across all property types, while Halifax could see a 6% increase in average sale price for the remainder of the year.
About The 2021 Re/max Fall Housing Market Outlook Report
The 2021 RE/MAX Fall Housing Market Outlook Report includes data and insights from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. Regional summaries with additional broker insights can be found at REMAX.ca. The fall outlook is based on predictions of RE/MAX brokers and agents. The overall outlook is based on the average of all regions surveyed, weighted by the number of transactions in each region.
*2020 average residential sale price numbers were full-year, 2021 were from January 2021-August 31, 2021.
Public Relations & Content Manager
Lydia McNutt is an award-winning writer, editor and PR professional, who has spent the last 20 years of her career focussed on all things real estate.