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Regina to continue as a balanced market in 2021, prices to decrease 1.5%
Regina real estate is likely to continue as a balanced market in 2021, however, COVID-19’s impact on the local economy could result in lower sales for the region in 2021. The average sale price in Regina increased by 2% to $307,900 in 2020 (Jan. 1 – Oct. 31), compared to $301,400 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for Regina real estate in 2021 is a decrease of 1.5% in average sale price to approximately $303,281.50.
Who’s Driving Demand for Regina Real Estate?
Move-up buyers are currently driving demand in the Regina real estate market, which is expected to continue into 2021. The most popular property type with move-over buyers are one-storey detached homes.
First-time homebuyers in Regina are typically young couples looking for single-detached homes. These properties range in price from $250,000 to $350,000. It may be more difficult for first-time homebuyers to enter the market in 2021 if they have experienced job losses due to COVID-19. Regina has seen very little hesitation from first-time homebuyers entering the market, as they were active in 2020.
Move-up buyers in the Regina market are typically young couples, and they have very little hesitation when it comes to entering the housing market in 2020. The only issues that move-up buyers have experienced when trying to purchase a home in 2020 is that they may have trouble getting financing as insurers have been more critical.
The condominium market in Regina is most popular with single homebuyers, with the average price of a Regina condo being $222,700. The condo market has fallen slightly, while all other markets are generally doing well. Families are typically wanting to be in larger homes with more space, so there has been more supply and less demand for multi-family homes.
Regina’s luxury market is currently driven by move-up buyers, with the average starting price for a luxury home in Regina being $700,000. COVID-19 does not seem to have had an impact on Regina’s luxury market, and these numbers are expected to remain the same into 2021.
Regina New-Home Construction
The Regina new-home construction has remained steady in 2020, and this is expected to continue into the new year. The number of new homes being constructed is sufficient to meet current demand. New-home sale prices are similar to those of resale properties on the market.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”
The Regina housing market saw slow sales activity at the peak of COVID-19 lockdowns in March. While activity picked up by June, the number of listings were still down, creating high demand from local buyers. The market saw an uptick in multiple offer scenarios, and this is expected to continue into fall.
The average sales price and transactions are back to the levels that the region saw during this time in 2019. Regina’s luxury housing market remains unaffected by the pandemic as this sector is also seeing similar levels to 2019.
Buyers in the region are optimistic about the market and prices are expected to remain stable, with a 2% increase for all property types expected in Regina, Saskatchewan for the remainder of the year.
Western Canada
While COVID-19 lockdowns in March and April slowed down the housing market in Western Canada, transactions in Kelowna, Saskatoon and Vancouver resumed by May, with sales in both May and June surpassing year-over-year levels. Many buyers put their plans on hold at the peak of COVID-19 lockdowns, but they returned to the market quickly to make up for lost time. Edmonton’s housing market quickly bounced back to pre-COVID levels in June, while Saskatoon experienced its busiest June in years; this momentum is anticipated to continue into the fall market, with RE/MAX brokers and agents estimating a three-per-cent increase in average residential sale prices for the remainder of the year. Overall, brokers and agents in Western Canada say the potential buyers they are talking to are not too concerned with a potential second wave of COVID-19 impacting their real estate journey, and RE/MAX brokers are estimating steady activity to round out 2020.
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Canadian Housing Market Outlook
Leading indicators from RE/MAX brokers and agents across Canada’s housing market point to a strong market for the remainder of 2020. According to the RE/MAX Fall Market Outlook Report, RE/MAX brokers suggest that the average residential sale price in Canada could increase by 4.6% during the remainder of the year. This is compared to the 3.7% increase that was predicted in late 2019.
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The pandemic has prompted many Canadians to reassess their living situations. According to a survey conducted by Leger on behalf of RE/MAX Canada, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. This trend is stronger among Canadians under the age of 55 than those in the 55+ age group.
Not only are Canadians more motivated to leave cities, but changes in work and life dynamics have also shifted their needs and wants for their homes. According to the survey, 44% of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a large yard.
Canadians equally split on their confidence in the housing market
Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident. When it comes to the prospect of a second wave of COVID-19, 56% of Canadians who are feeling confident in Canada’s real estate market are still likely to buy or sell.
“While COVID-19 lockdowns slowed Canada’s housing market at the start of a typically busy spring market, activity bounced back by early summer in many regions, including Vancouver and Toronto,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained, and current market activity further exemplifies this. Many homebuyers are now exploring different neighbourhoods that better suit their new lifestyles, and real estate agents are getting busier and working more with buyers from different major cities. According to our brokers and agents across the RE/MAX network, Canada’s fall market is expected to see spring market-like activity.”
Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey:
- 48% of Canadians would like to live closer to green spaces
- 48% of Canadians say it’s more important than ever to live in a community close to hospitals and clinics
- 33% of Canadians would like more square footage in their home and have realized they need more space
- 44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)
About the 2020 RE/MAX Fall Market Outlook Report
The 2020 RE/MAX Fall Market Outlook Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments.
The Regina housing market is currently balanced which is expected to continue into 2020. The RE/MAX average residential sale price expectation for Regina is +1-2% due to an increase in sales and less listings on the market. If this continues into 2020, prices should adjust slightly upwards.
Currently there are 7.7 months worth of inventory left, as we move into spring 2020 this will reduce slightly. The mortgage stress test has made buyers more cautious about home ownership.
First-time home buyers are most interested in the popular property type, which is single detached homes, while retirees drive the condo market and are interested in townhouses with two or more bedrooms.
Move-up and first-time home buyers are expected to continue to drive demand in 2020 and there has been a slight increase in the luxury sales year over year, which is likely to continue in 2020.
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.
As more Canadians have adjusted to the mortgage stress test and older Millennials move into their peak earning years, it is anticipated that they will drive the market in 2020, particularly single Millennials and young couples. A recent Leger survey conducted by RE/MAX found that more than half (51 per cent) of Canadians are considering buying a property in the next five years, especially those under the age of 45.
Click to read the full RE/MAX 2020 Housing Market Outlook Report.
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