January 2020 Real Estate Market Predictions

Dated: 06/05/2020

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2020 Real Estate Market Predictions:

As the New Year rolls in most of us begin to reflect on the past and plan for the future.  This can be very scary yet exciting for some and anxiety-inducing for others.  I want to share with you my thoughts and researched opinions on what we can expect in 2020.  Real Estate has changed rapidly in the last few years, the internet and social media have granted access to enormous amounts of information at the click of a button.  Yet with all this information at our disposal occasionally we still require some expert help wading through it all and a person we trust to guide us to what actually will apply to us.  Having an idea where the market is heading is critical to making the right decisions and I am here to help you every step of the way.

So here are some FACTS about the Canadian Market.  66.3% of Canadians own homes, the average MLS Home Price was $525,125 and approximately 463,000 units were sold in 2019.  Investments in construction are up year-over-year: semidetached homes + 4.3%, row homes +13%, condo and rental apartments +5.1% and single-family homes -6%.  A very real challenge is inventory levels (properties available for purchase) are at the lowest levels since April 2017.  4.4 months is how long it would take for all the homes on the market to sell, however, long-term averages are 5.3 months of inventory. Our local inventory is only a mere 3.98 as of December 2019.

Homebuyers can continue to take advantage of low mortgage rates as the consensus of opinion among market experts is that the Bank of Canada will hold the interest rates for the foreseeable future.  2019 consistency had low mortgage rates which led to accelerated home price growth in markets all over the country, including our own.  Low lending rates and government support programs have also boosted home prices in major markets (Toronto) at a time when the supply of homes was dwindling.  All this suggests that Buyers are likely to have a harder time getting into the market; despite the favourable low rates.

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Norma Rae Mechetuk-Bradshaw

When you work with me, you can count on personal, attentive service, excellent knowledge of the area, great negotiation skills, marketing and sales strategies.....

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