Brampton real estate prices have been on a steady incline in recent years, so it’s little surprise that the city’s housing market ranked #13 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Housing Affordability Report. However, cost-conscious home hunters in search of a good deal can still find one in the communities of Madoc and North Park, which have been named the most affordable neighbourhoods to buy a home in Brampton.
Factors contributing to Brampton real estate prices
Brampton real estate prices have been on the rise, experiencing a four-per-cent increase from 2018 to 2019, and another five-per-cent increase expected this year (source: 2020 Housing Market Outlook Report). This has been a contributing factor in Brampton being named one of Canada’s least-affordable housing markets.
In its inaugural Housing Affordability Report, RE/MAX examined 16 of Canada’s most-populous regions and ranked them on an affordability scale, with #1 being the most affordable and #16 being the least affordable. RE/MAX brokers were surveyed about average home sale prices and whether they believe real estate in their region is overvalued, undervalued, or right on the money. Brampton real estate came in at #13 of 16 cities. Canada’s most affordable city to buy a home is Regina (#1) and the least affordable place to buy a home is Vancouver (#16).
RE/MAX’s affordability ranking was determined by assessing the percentage of a buyer’s monthly income needed to carry a mortgage, assuming a down payment of 25 per cent, and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.
Brampton real estate is currently considered to be undervalued when compared to the rest of Peel Region and the Greater Toronto Area as a whole. The average sale price of residential Brampton real estate was $726,948 in 2019.
Brampton’s high level of liveability is being credited with rising demand for homes. The region offers easy access to downtown Toronto via highways and GO Transit, making it attractive to professionals. The region also houses a high supply of employment opportunities in the service, logistics, light manufacturing and medical sectors.
At the high end of the affordability spectrum, the region’s least affordable neighbourhoods include Castlemore, Bram West and Credit Valley.
Despite the commonly held notion that housing in Canada is unaffordable, the report finds that the vast majority of Canada’s largest urban centres (75 per cent) are currently undervalued, according to a survey of RE/MAX brokers in 16 of Canada’s most-populous cities.
In its report, RE/MAX explored the most popular property types sought by first-time homebuyers, the least and most affordable neighbourhoods in each of the 16 housing markets, factors preventing buyers from entering the market, and methods homebuyers are using to enhance the affordability of homes. Current and prospective Canadian homeowners were also surveyed about their sentiments around home ownership, barriers to owning a home, financial factors impacting home ownership, and what could potentially improve housing affordability.