Balanced market expected in 2020, prices to rise 2%
The RE/MAX Thunder Bay housing market outlook for 2020 calls for balanced conditions, and an anticipated residential price increase of two per cent due to low market activity and minimal change taking place in recent years.
The balanced housing market will be a continuing trend that dominated the Thunder Bay housing market in 2019, with an influx of homebuyers, many professionals working in the medical field. Affordability isn’t a concern in the region and the stress test has not had a significant impact on market activity, which cannot be said for many of Canada’s other housing markets. An aging inventory of condominiums, single-story detached homes and townhomes are leading to increased activity for these property types.
First-time and move-over buyers are expected to continue to drive demand in 2020. The aging population will lead to an increase in buying activity around the hospital. River Terrace and Sherwood Estates will be the hottest neighbourhoods to watch 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, 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.”