Housing Market Trends to Watch Out for in 2020
Posted by Garman Group on
We’ve now got a firm foot into 2020 and this new year — and new decade — brings with it some new housing marketing trends we’re going to see throughout most of Canada. The whole country will likely be affected in some way, but these trends are mostly guided by what’s going on in B.C., Ontario, as well as Quebec.
The last few years have seen a bit of a decline in real estate sales and prices, especially in major markets, however, the last few months of 2019 and the first few months of 2020 have brought in some stabilization to the housing market in general. So, for those wondering if this growth will continue or not, here are the major Canadian housing market trends, the Canadian Mortgage and Housing Corporation (CMHC) states we should watch out for this year!
Higher Demand for Real Estate
A few short years ago, there was so much demand for real estate that houses would only be on the market for as little as a few days — or occasionally even hours — before selling. As we mentioned, over the last few years, home sales have cooled down a bit, but we’re expecting the demand to rise once again throughout 2020 and into 2021 as well.
Strong immigration numbers, bank interest rates continuing to be stable (and potentially lowering), and a stronger economy are all reasons for this higher demand in real estate.
Rising Real Estate Prices
Back in 2017, when there was such a high demand for real estate, the prices reflected that — and due to such high competition as well as bidding wars, real estate prices were considered to be above average — and even well above average in some major housing markets. In fact, several records were set, and even housing experts were surprised at the demand and record prices. These unprecedented prices fell back to more “normal” levels in 2018 and most of 2019. But now, with the higher demand of real estate expected for 2020, house prices are expected to rise once again — and likely continue rising — as 2020 goes by, and likely won’t slow down for at least another year after.
Demand for New Home Construction
After seeing a huge rise in new home construction in 2017, construction rates have dropped slightly over the past few years. The Canadian economy is gaining strength, and this goes a long way to greatly inspire home construction to bump up again. And now that we’re expected to see a higher demand in real estate and the fact that these homes will likely sell at above-average prices, new construction rates should start to rise again.
If you have any further questions about housing market trends in Canada, or more specifically, what the real estate market trends are like here in Victoria, contact the Garman Group. We offer free home market assessments and can help you buy a new home or sell your current home quickly and at top dollar no matter what the market is like.