Last week, the Canadian Real Estate Association (CREA) in their most recent market forecast revealed that despite the challenges encountered during spring, homebuyers are on track to set a record before closing the year.
According to CREA’s projections around 544,413 homes will be in new hands before december 31st, an 11.1% increase from 2019.
As a result, home’s average national price can rise up to 13.1% due to current market conditions.
In Ontario, CREA forecasts that 228,665 homes will change hands by the end of the year, representing a 9.2% increase compared to 2019. In regards to the average price they have pointed out that this should rise 17% in comparison to the previous year.
After the record that was established earlier in the year when the lowest interest rates were announced by the Bank of Canada and other major banks, CREA forecasts 2021 will be not only a strong year for sales but could also surpass the current record.
On a national level, CREA is projecting a 7.5% increase in year-over-year sale of houses across all regions, except for Ontario whose set to see a 3.3% decline in sales but up to 16.3% increase in the average home price.
This projection comes after Ontario’s housing market was down on a year-over-year basis in November due to a market supply shortage. This in turn, led to the average home price in the province to remain up.
In areas like Mississauga and Oakville-Milton the average price increased 10%-15% while in the GTA the average selling price for all homes was up by 13.2% compared to November 2019.
With only a few days left to close the year, it is truly hard to tell how the market is going to evolve but meanwhile we only hope 2021 brings infinite opportunities to those who are looking forward to buying a new house.
In case you have any questions or comments, please do not hesitate to reach out.