Balanced market to prevail in 2020, prices to rise 3%
The RE/MAX Durham housing market outlook for 2020 continues to be balanced, following in line with the market conditions of 2019. The average residential sale price expectation for Durham Region in 2020 is an increase of three per cent, due to a healthy and steady market. Sales prices will continue to increase at a reasonable rate as long as inventory continues to be available in 2020.
Affordability is a concern to those looking to enter the Durham housing market. It is anticipated that affordability will deteriorate further in 2020 as the population continues to grow and more buyers move east to Durham from Toronto. The mortgage stress test prompted more Toronto buyers into the Durham region, which helped level out the loss of first-time buyers who were unable to enter the market in Durham in 2019. First-time homebuyers are expected to be the main market driver in 2020. Communities in high demand will be Bowmanville and Newcastle.
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.”