Price increases in Vancouver could be double-digit.
What happened? Canadian real estate broker Royal LePage predicts that home prices in the country will rise 5.5% in 2021. This conclusion was made by the company’s specialists on the basis of an unexpectedly strong rise in prices this year, caused by a shortage of real estate for sale and record low mortgage rates, according to Reuters.
However their forecast differs from the conclusions of other market participants. In particular, the state-backed mortgage company Canadian Mortgage and Housing Corporation predicts a decline in prices in 2021, and some of the country’s largest banks are forecasting growth, but more restrained.
Thus, Royal Bank of Canada and Bank of Nova Scotia announced in their annual reports for the 2020 financial year that over the next 12 months they expect a rise in home prices by 0.6% and 0.4%, respectively. They cited the economic uncertainty caused by the pandemic, the weakness of the condominium market and the limited availability of housing as the reasons.
Statistics. According to the Canadian Real Estate Association, the average home price in Canada in October rose more than 15% from last year and broke a record for the entire observation period.
Forecast. Royal LePage expects the move to larger housing, which has driven both sales and single-family home prices soaring this year, will be moderate next year as “life gets back to normal”, which will ease some of the pressure on condominium markets.
Demand for condominiums is expected to be stable in most of Canada’s largest cities, with the exception of Toronto, which is experiencing declining demand in the center, the company said.
Record holders. According to the forecast of Royal LePage, the leaders of growth will be Ottawa and Vancouver with indicators of 11.5% and 9%, respectively. Calgary and Edmonton will be in the tail with only 0.75% and 1.5% gains. At the same time, prices in Toronto may rise by 5.75%.
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