As we enter 2020, now is the time to begin planning your real estate needs for the year ahead. The residential real estate market in the GTA does not show any signs of slowing down. Interest rates are low, the employment rate is low and immigration continues to be very strong fuelling the demand for housing.
At the end of each calendar year Re/Max prepares it housing market outlook for the net year. Before I get into more detail check out the video below of Toronto's skyline evolution. It is truly amazing.
2020 HOUSING MARKET REPORT
Some Fun Facts:
*51% of Canadians are considering a home purchase in the next five years, up from 36% at the same time last year
*Only two in 10 Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”
Toronto is set to experience a strong housing market in 2020. Lower unemployment rates, economic growth and improved overall affordability in the Greater Toronto Area are expected to drive the market forward. The estimated average sale price increase for 2020 is six per cent, two points higher than the growth experienced between 2018 ($736,256) and 2019 ($766,236). The city saw 76,413 properties sold in 2019, up 12 per cent from 2018 (68,064). While Toronto is experiencing its “busiest” construction season ever, housing supply still falls short of the demands of the city’s rapidly growing population.
Cities such as Ottawa and Windsor are seller’s markets, showing substantial increases in average residential sale price at 11.7 and 11 per cent, respectively. This strong growth is expected to continue into 2020, with Ottawa’s new LRT system impacting surrounding development and Windsor’s continued affordability attracting young professionals to the area. Buyers are also not burdened by the mortgage stress test, as they were in 2018.
The Niagara region is also showing strong growth, with average residential sale price increasing almost 13 per cent, from $378,517 in 2018 to $427,487.50 in 2019. Value-conscious consumers from the Greater Toronto Area are buying in droves, with many choosing to live in the region while commuting to Toronto.
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions still seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the the 2020 market looks very optimistic.”
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What to do next?
Let's meet for a coffee at my office to discuss your real estate needs. This is a no-obligation get together. Ask as many questions as you like. I love discussing residential real estate. A real estate purchase requires a plan. There are so many moving parts. Are you interested in down-sizing? Up-sizing? Are you curious about the investment side of real estate, purchasing an investment property perhaps? Are you a first-time home buyer? Are you an investor curious about the rental market?