Balance expected to return to market in second half of the year: Royal LePage Canada
Royal LePage: National home prices rise sharply in the second quarter as housing supply struggles to keep up with the surge in demand.
Balance expected to return to the market in second half of the year
- Two-storey house prices outpace condos as home-bound Canadians place a premium on space
- Ontario posts Canada’s highest home price increases, with Mississauga in the top spot at 13.5% year-over-year
- Royal LePage revises Canadian home price forecast upwards to 2.3% by year-end 2020, as low rates and pent-up demand face limited housing supply
TORONTO, July 9, 2020 –According to the Royal LePage House Price Survey and Market Survey Forecast released today, the aggregate price of a home in Canada increased 6.8 percent year-over-year to $673,072, in the second quarter. Once provinces allowed regular real estate activity to resume, demand surged in many markets. Inventory levels, already constrained pre-pandemic, have failed to keep pace.
“Home prices shot up in the second quarter as a crush of buyers entered the market, attracted by extremely low-interest rates and the perception of bargains to-be-had,” said Phil Soper, president, and CEO of Royal LePage. “Across Ontario and Quebec in particular, the demand for housing outpaced the growth in supply, especially in the early weeks post-lockdown. The surge in the number of first-time buyers was felt acutely, as these housing consumers soaked up supply without contributing to it.”
Soper continued, “We are now seeing sellers return to the market in key supply-constrained regions in numbers sufficient to meet demand. Homebuyers should enjoy more reasonable conditions with stable prices and improved selection in the second half of the year.”
The Royal LePage National House Price Composite is compiled from proprietary property data in 64 of the nation’s largest real estate markets. When broken out by housing type, the median price of a standard two-storey home rose 8.0 percent year-over-year to $794,392, while the median price of a bungalow increased 3.9 percent to $550,289. The median price of a condominium increased by 5.3 percent year-over-year to $503,983.