Seller’s market expected for 2020, prices to increase 5%
The Brampton housing market is expected to favour sellers in 2020, with a five-per-cent increase in the average residential sale price in 2020. This lift in price is being attributed to strong consumer confidence as a result of rising prices for the better part of the past two years, and higher number of transactions.
The Brampton housing market currently sits in seller’s territory, due to limited inventory across the region. This trend is expected to continue into 2020. While relatively affordable compared to other regions in the Greater Toronto Area, the stress test has hindered many buyers from getting into the housing market. While the city’s unemployment rate is low and private investment is strong, Brampton’s infrastructure is playing catch-up to its high rate of growth. The city’s proximity to Toronto and affordability continues to make it one of the stronger real estate markets out there.
First-time and move-up buyers are expected to drive the Brampton housing market in 2020. Prices have almost climbed back to the heights reached at the beginning of 2017. As a result, more homeowners have become more confident with the rebuilding of their equity and using it to move up. In turn, this is freeing up starter homes for first-time homebuyers.
Northwest Brampton, Credit Valley and Brampton East are the hottest neighbourhoods to watch in 2020, especially due to the former two being in close proximity to GO Transit and the latter providing easy access to Highway 427.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”
Click to read the full RE/MAX 2020 Housing Market Outlook Report.