Ontario Real Estate: Expectations for Newmarket Real Estate

Was there any city in the province of Ontario and the broader Canadian real estate market that endured substantial setbacks in 2020? Aside from the two-month slump early on in the COVID-19 pandemic, most places recorded noteworthy gains that could be hard to emulate in 2021 and beyond.

It could be a challenge to find a region in the Ontario real estate market that does not witness exponential growth. Despite being in the middle of an economic downturn and a global health crisis, the province’s housing sector is seeing gains – both in sales activity and prices. If it were any other time, it would be easy to assume that Toronto and Ottawa were the primary drivers of this boom. But this is no ordinary market, thanks to COVID-19 and its impacts.

Whether it is the Greater Toronto and Hamilton Area or rural communities, the Ontario real estate market had an incredible 2020, which is expected to continue heading into 2021. Newmarket is a municipality that enjoyed a strong 2020, and the expectation is for another impressive performance in 2021!

Canadian Real Estate: Expectations for Newmarket Real Estate

In order to garner a glimpse of what to expect this year, it’s helpful to see how Newmarket and its various communities performed over the course of topsy-turvy 2020. According to the Toronto Regional Real Estate Board (TRREB), Newmarket recorded close to 600 sales during the third quarter (the most complete quarterly data available at the time of writing). The median price reached $850,000, while the average price topped $906,000. New listings climbed to 840, and active listings increased to 214. The average days on the market was 17.

Here is what to expect across the city’s various communities, based on TRREB data for the third quarter of 2020.

Armitage

• Sales: 29
• Median Price: $990,000
• New Listings: 39
• Active Listings: 13
• Average DOM: 25

Bristol-London

• Sales: 57
• Median Price: $818,000
• New Listings: 85
• Active Listings: 21
• Average DOM: 14

Central Newmarket

• Sales: 74
• Median Price: $712,500
• New Listings: 123
• Active Listings: 35
• Average DOM: 15

Glenway Estates

• Sales: 41
• Median Price: $875,000
• New Listings: 59
• Active Listings: 13
• Average DOM: 22

Gorham-College Manor

• Sales: 61
• Median Price: $801,000
• New Listings: 93
• Active Listings: 32
• Average DOM: 16

Huron Heights-Leslie Valley

• Sales: 42
• Median Price: $802,250
• New Listings: 73
• Active Listings: 14
• Average DOM: 15

Stonehaven-Wyndham

• Sales: 107
• Median Price: $1.24 million
• New Listings: 150
• Active Listings: 37
• Average DOM: 19

Summerhill Estates

• Sales: 63
• Median Price: $850,000
• New Listings: 79
• Active Listings: 18
• Average DOM: 12

Woodland Hill

• Sales: 103
• Median Price: $888,888
• New Listings: 148
• Active Listings: 31
• Average DOM: 16

Another piece of data that real estate agents and analysts pay close attention to in determining a particular market’s strength is the price per square foot. A single-detached house, for example, averaged $510 per square foot in the first half of 2020, up 37.29 per cent from the same time a year ago.

Overall, Newmarket’s home values have increased, sales activity has rebounded, and more people are transitioning from big cities to plant roots in this small town, which is a trend that has emerged from coast to coast in the wake of COVID-19. Newmarket will inevitably benefit from more homebuyers enjoying flexible work options, including working from home and telecommuting. It could also see surging demand for detached and semi-detached properties.

With Newmarket only a half-hour away from the city of Toronto by car, living here combines the dual benefits of small-town living, with easy accessibility to big-city amenities, when you want and need them.

Will the Newmarket Housing Market Maintain Its Strength in 2021?

In 2021, the national average home price is forecast to rise more than nine per cent to approximately $620,000, according to a recent report from the Canadian Real Estate Association (CREA).

“Ontario has seen strong demand for several years, particularly outside of Toronto, which has eroded active supply in the province. This shortage is expected to limit sales activity in 2021. 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 stated.

With interest rates expected to hover around all-time lows for at least another year and consumer trends continuing to evolve, there is no reason to think that the housing market – in Newmarket or the rest of Canada – will endure a sudden downturn. Put simply, Newmarket homeowners and homebuyers can anticipate another strong performance in 2021.