Q4 2020 Royal LePage House Survey and Market Forecast
Royal LePage: More than half of Canada’s largest real estate markets see double-digit price growth as national home values soar 9.7% in the fourth quarter.
Fourth quarter regional highlights:
- The price of detached homes continue to outpace condominiums as Canadians trade location for square footage
- Despite the strong push toward the suburbs, Toronto and Montreal single-family homes see double-digit price gains in city centers
- The median price of a two-storey home in Greater Vancouver rises 8.8% as buyers prioritize square footage
- Out-of-region buyers spur Maritimes’ home prices, as an option of remote work and demand for large, affordable properties grows
- The aggregate price of a home in Canada rose $206,815 since Q4 2015
TORONTO, January 15, 2021 –According to the Royal LePage House Price Survey released today, the aggregate price of a home in Canada increased 9.7 percent year-over-year to $708,842 in the fourth quarter of 2020, as strong seller’s market conditions continued to shape Canada’s real estate market through the end of the year. The significant year-over-year increase in aggregate price was driven by price gains for larger properties. Sixty-four percent of all regions surveyed showed year-over-year median price gains of more than 10 percent for two-storey homes.
The Royal LePage National House Price Composite is compiled from proprietary property data, nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the median price of a standard two-storey home rose 11.2 percent year-over-year to $840,628, while the median price of a bungalow increased 10.0 percent to $592,899. The median price of a condominium increased by 3.9 percent year-over-year to $509,239. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.
“In April 2020, we issued our pandemic period forecast for Canadian real estate, the principle prediction being that unexpectedly soft spring home prices, historically low-interest rates, and years of pent-up demand would trigger a sharp recovery of sales volumes and rising property prices in the second half of the year,” said Phil Soper, president and CEO of Royal LePage. “As we close the books on the strangest year in my long career, ‘recovery’ proved to be an understatement. Looking at fourth-quarter results we can state without hyperbole that the health crisis triggered a real estate boom.
“High levels of unresolved housing demand and low inventory levels will likely characterize the 2021 spring market, putting further upward pressure on housing values, particularly in the detached and larger townhome segments, as families with access to extremely low borrowing costs trade traditionally desirable urban locations for more personal space,” he continued.
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