CREA forecasts price hike in 2021
January 11, 2021
The Canadian Real Estate Association (CREA) expects the national average home price will rise 9.1 per cent to $620,400 in 2021, with sales also rising everywhere but in Ontario.
CREA forecasts home prices to either hold steady or climb in all regions across the country, citing economic improvements from the lows of the COVID-19 pandemic.
"The strength of demand, particularly for larger single-family properties, will drive the average price higher as potential buyers compete for the most desirable properties," the report says.
CREA has one of the bullish forecasts, as the industry tries to understand a record-setting market against a backdrop of lingering unemployment and effects of the COVID-19 pandemic.
Re/Max is predicting 2021 price increases of 4 per cent to 6 per cent, while Royal LePage is forecasting a 5.5 per cent price rise.
CREA expects national home sales to increase by 7.2 per cent to around 584,000 units in 2021. All provinces except Ontario are forecast to see increased sales activity in 2021, as low interest rates and improving economic fundamentals allow people to get into the markets where homes are available for sale.