Ontario Housing Market Already On Pace to Have Record Year in 2021
Friday Jan 15th, 2021Share
Following a year like no other, Canada’s housing market is poised to have a record-setting 2021, with price momentum and demand forecast to continue.
One thing the pandemic didn’t do is “dial down the market’s heat,” it is expected to be continued in 2021, with prices slated to reach “new heights” in the year ahead.
They say the bank forecasts the national benchmark price to rise 8.4% to $669,000 and home resales to increase to the strongest level ever in Canada up 6.5% to 588,300 units with nearly all provinces showing gains.
While home price increases stayed on track throughout the pandemic, the pace quickened, with the national aggregate benchmark price rising 8.5% in 2020 — or almost five times the 2019 rate of 1.8%.
They hope this solid momentum to be sustained in 2021 with a gain of 8.4%, underpinned by tight demand-supply conditions in Ontario.
A lack of supply will be the reason property values continue to rise, as the strong demand pre-pandemic and through summer has cleaned up inventories in Ontario.
Following a record-setting 2020, where home resales rose nearly 13% to 552,300 units nationwide, it is expected home resales to be even stronger overall in 2021, reaching 588,300 units. This will be driven by historically low-interest rates, changing housing needs, high household.