Canada Housing to See 9.1% Jump in House Prices in 2021
The Canadian Real Estate Association, an umbrella group of local real estate boards, is forecasting a 9.1 per cent jump in house prices in 2021, with Ontario leading the way with a 16.3 per cent jump in prices, followed by Quebec at 13.6 per cent.
“Current trends and the outlook for housing market fundamentals suggest activity will remain relatively healthy through 2021, with prices either continuing to climb or remaining steady in all regions,” CREA said in a forecast.
Mortgage rates have fallen, including the rate on the Bank of Canada’s stress test for borrowers, CREA noted. On top of that, record levels of migration into Canada in recent years have pushed up demand for housing, and CREA expects that to continue once the pandemic ends.
But right now, with border shutdowns in effect, immigration into Canada is at historic lows, and several provinces ― including Ontario and British Columbia ― saw their populations decline in 2020, the first time that has happened in records going back to 1946. That’s one reason why some forecasts are calling for a decline in house prices in 2021.