The COVID-19 pandemic has affected many parts of life in Canada, including the ability of many Canadians to purchase homes. The end of 2020 has come with the release of annual reports detailing the projected cost of homes around Canada. There appears to be some confusion and controversy over the projected cost of housing in 2021 in Canada, which has been caused by the continued use of low-interest rates and the expected rollout of a COVID-19 vaccine in the New Year.
Royal LePage See Positive Signs
The real estate sector in Canada has risen by around 15 percent in 2021, according to the Canadian Real Estate Association. Unlike the majority of the Canadian economy, the real estate sector has not stalled because of the COVID-19 issues faced by citizens across Canada. The real estate brokerage, Royal LePage has gone out on a limb with its claims of a rise in house prices of 15-percent in 2021. The real estate brokerage believes the favorable interest rates that have remained historically low during the pandemic will drive the growth of the market.
A Changing Market
Canada has been in the grip of a downsizing revolution for the last few years, with the number of condos and apartments sold consistently rising. COVID-19 has driven an exodus from major cities across the world, led by the largest cities in North America. Lockdown rules in major cities are pushing more homebuyers to take on the extra cost of a larger home to provide an extra layer of security for their families in the COVID-19 era. The COVID-19 pandemic of 2020 prompted a rise in the number of single-family homes being sold in major cities across Canada.
Fewer Condos and Apartments to be Sold
The number of apartments sold in major cities is expected to remain the same in the metropolitan areas of Canada, with Toronto’s condominium market remaining low across the city. The condo market is expected to continue to be healthy, but it will not see the huge gains expected by Royal LePage in the single-family homes market.
A Mixed Future
The future of the Canadian real estate market in 2021 is a controversial subject, with Royal LePage being the only group calling for huge gains. Most lenders and real estate experts believe the long-term outlook for the market will be less impressive with a growth rate of 0.6 percent forecast by the Royal Bank of Canada. Royal LePage forecasts a rise of 11.5 percent in Ottowa for 2021. However, the brokerage agrees growth will be slow in Calgary, where they forecast growth will be 0.75 percent.
