The CREA Expects the National Average Home Price Will Rise in 2021
Wednesday Dec 16th, 2020
The Canadian Real Estate Association expects the national average home price will rise 9.1 per cent to $620,400 in 2021, in one of the most optimistic forecasts yet for the real estate sector.
The CREA says it expects home prices to either hold steady or climb in all regions across the country, citing economic improvements from the lows of the COVID-19 pandemic. The strength of demand, particularly for larger single-family properties, will drive the average price higher as potential buyers compete for the most desirable properties.
The group of more than 130,000 real estate agents has one of the cheerier forecasts out there, as the industry tries to make sense of a hot real estate market against a backdrop of lingering unemployment and uncertain end date to the COVID-19 pandemic's second wave.
Headed into 2021, CREA says even more homes will be sold, although monthly home sales are likely to ease back to more typical levels compared to 2020's wild swings. Overall, CREA expects 2021 home sales volumes to surge 7.2 per cent to around 584,000.
The report also notes that mortgage rates are expected to stay low next year, supporting borrowing.