The pandemic is not likely to impede Canadians’ appetite for housing, new report says
Borrowing and home purchase activity are likely to remain strong for the rest of the year despite the continuing threat of the pandemic, according to RE/MAX.
Current trends and indicators point to a likely home price increase of 5% in the last three months of 2021, RE/MAX Canada said in its latest housing market outlook report.
“As our brokers and agents predict, the fall market activity is expected to remain steady, which is promising, despite the ongoing challenges presented by the Delta variant,” said Christopher Alexander, senior vice president of RE/MAX Canada.
Single-detached housing, in particular, will drive the growth in the fall season. This asset class saw the largest price gains over the past year, increasing between 6.8% and 27.3% across 26 markets surveyed by RE/MAX.
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Sustained demand among young families will greatly influence the market, providing much-needed momentum into the new year, RE/MAX said.
“This is particularly relevant given the Canadian housing market is often a good indicator of economic activity in the country, and with the Bank of Canada forecasting economic growth of 4.5% in 2022, a strong fall housing market is a good sign that things may be starting to return to a more natural rhythm,” Alexander said.
Ontario is expected to provide much of this impetus, according to RE/MAX. The province registered some of the highest average residential price increases across single-detached homes nationwide, with increases between 20% and 35.5% annually.
