Not even a pandemic can curb Canada's insatiable housing demand
You'd never know how badly Toronto and the broader Canadian housing market sputtered at the onset of the pandemic based on its recent performance.
Even in the face of the worrying Delta variant, demand for housing and price growth are both expected to remain strong across the country through the fall, according to the 2021 RE/MAX Fall Housing Market Outlook Report.
Nationwide, already sky-high home prices are expected to climb by another 5 per cent before the year is over, the acceleration fuelled by critically low supply and sustained demand for housing.
This supply/demand imbalance has created an almost coast-to-coast seller's market, applying to 26 of the 29 major housing markets in the country. Toronto is really just a few brushstrokes in the broader picture playing out across most Canadian cities.
"As our brokers and agents predict, the fall market activity is expected to remain steady, which is promising, despite the ongoing challenges presented by the Delta variant," says Christopher Alexander, Senior Vice President, RE/MAX Canada.
"This is particularly relevant given housing markets in Canada are often a good indicator of economic activity in the country, and with the Bank of Canada forecasting economic growth of 4.5 per cent in 2022, a strong fall housing market is a good sign that things may be starting to return to a more natural rhythm."
As the epicentre of the country's economy and most populous province, Ontario is seeing out of control price acceleration, particularly for single-detached homes.
Most regions in the province experienced year-over-year price growth between 20 and 35.5 per cent for detached homes. And yet, somehow, Toronto is an outlier on this list, the city seeing a substantial 14.6 per cent spike in detached home prices that still fell well below the province-wide average.
Condo prices saw the least growth in Toronto at 4.6 per cent, while townhome prices increased by 10.6 per cent on average. Still, overall Toronto home prices are projected to increase by another 7 per cent in just shy of 3 months before 2021 ends.
"Housing activity throughout the pandemic has remained strong, so it comes as no surprise that the outlook for the remainder of the year continues on an upward trajectory, which is great for homeowners and their equity, but challenging for first-time buyers who have been priced out of the market," says Elton Ash, Executive Vice President, RE/MAX Canada.
"What is affecting the Canadian housing market right now? Low interest rates, economic stimulus, higher home-buying budgets, a higher savings rate, homeowners too scared to sell, and not enough new construction. These factors have created current market conditions."
Join the conversation Load comments