Canadian real estate is expected to see healthy appreciation by the end of next year, according to the Royal LePage Market Survey Forecast.
The annual report forecasts the aggregate price of a home in Canada will be $669,800 in 2020, an increase of 3.2% year over year.
The median price of a condominium is expected to rise 3.6% to $506,100, and two-storey detached houses are projected to increase by 3.1% to $785,400.
The positive outlook for 2020 is based on healthy buyer demand, the report said.
A recent shift in millennial demand for larger homes is expected to lead to a surge sales activity in the suburbs. Condominiums will remain in demand in regions where affordability restricts buyers’ choice of housing types.
The report indicated that Canada’s immigration rate has also become a driver of demand. According to October’s Royal LePage Newcomer Survey, 75% of newcomers arrive in Canada with savings to put toward the purchase of a home.
Regional markets differ in demand
Low supply and a growing population is expected to fuel home price growth in the Greater Toronto Area, according to the report. The aggregate price of a home in the GTA is forecast to increase 4.75% in 2020, rising to $883,700.
The Greater Montreal Area is expected to see the highest year-over-year appreciation of all regions analyzed at 5.5%, and Ottawa’s home prices are expected to increase 4.5%.
In Greater Vancouver, house prices are forecast to stabilize in 2020 after a decline in 2019. The aggregate price of a home is expected to increase 1.5% to $1,125,200. Both the prices of condominiums and standard two-storey homes are expected to see an increase by the end of next year as well.
Edmonton, Calgary and Halifax are expected to see modest gains (1%, 1.5% and 1.75%, respectively) in 2020. Winnipeg and Regina have a flat forecast.