MATT SLOAN | What will (and won’t) happen in the 2020 Canadian Real Estate Market
Tuesday Nov 12th, 2019
It’s crazy to say but with a New Year almost upon us, and the fall weather quickly becoming “crisp” – people inevitably ask me as a realtor, “what will happen to the Canadian real estate market in 2020?”
The answer is, there’s a number of things that could happen between now and then, but this CMHC report provides a national outlook of the Canadian housing market, which easily stands as the most comprehensive 2020 outlooks on the Canadian real estate market to date.
Now listen, I wouldn’t necessarily say that the CMHC report is among the most entertaining reads you’ll ever pick up in your lifetime… So, to save you some time, here’s some of the key takeaways from the report to consider. Here’s what the Canadian housing market will hold in 2020.
SALES ARE EXPECTED TO CONTINUE ACROSS ONTARIO
If CMHC’s report is accurate – which mind you, with only a few months left in the year, we’re unlikely to see a huge turnaround before 2019 is over.
However, if the CMHC report forecast projects accurately, sales surges are expected to continue in Ontario. That’s thanks to a growing population, high demand in units, a thriving luxury home market and steady, stable employment rates that have led to ample disposable income. Toronto and its surrounding cities are among the thriving, happening “places to be”.
ONTARIO WILL BENEFIT FROM HEALTHY SALES SURGES OVERALL
For Ontario as a whole, we’re set to see average sale price edge slightly higher across the board, reflecting further average price gains in Oakville, Toronto, Burlington and Hamilton overall.
However, one thing remains certain: demand will remain especially high in Toronto. Toronto's population grew over three times more compared to the second fastest-growing city in North America, Phoenix, Arizona. Words straight from the article if you read it said, the researchers who conducted the study described Toronto's growth rate as "stunning."
NEW HOME CONSTRUCTION AND HIGH-RISE CONDO MARKETS ARE BALANCING OUT
Sales in new home construction and high-rise condo markets are seeing especially healthy growth across Oakville, Burlington and Mississauga.
Projected outlook has been said to further stabilize as sales slowly recover after the slight market lull we saw over the last two years.
MORTGAGE PAYMENTS WILL LIKELY REMAIN STABLE
The CMHC report also mentions that home buyers will likely see mortgage payments remain stable until the end of 2021 – which was the extent of the period covered in the projected forecast.
Overall, the Toronto housing marketing reaching to Oakville, Mississauga and Burlington is returning to a balanced seller and buyer territory – thanks to positive increases in employment and a growing population.
In fact, Toronto is growing faster than anywhere else. This means, supply and demand will continue to come into conversation for the Toronto market.
For easy math, a few different reports have reported that Toronto home prices are anticipated to increase about 10.5 per cent in 2020. Which is actually pretty significant.
That means it’s a great time to buy or sell.
One thing I know for sure? If I were you, I would want to enter the 2020 real estate market primed with the best in the business. As always, I’m here to help you navigate the real estate journey with ease. If you’re ready to buy or sell your home today, contact me to help.