RE/MAX is out with the 2020 outlook for home sales across Canada and it is looking like another growth year for home prices. Although it could be a seller’s market in many larger cities, it is looking like a balanced market locally.
On a national level, the forecast is for a 3.7% increase in the average price for homes across Canada. For the most part, consumer confidence is fueling the real estate market heading into 2020.
- 51% of Canadians are considering a home purchase in the next five years. That is up from 36% at the same time last year.
- Only two in 10 Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019.
- 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.
REMAX provides a more detailed city by city outlook for 2020 in the full report available HERE, but locally it is looking like Simcoe County could actually grow more than the national average. The City of Barrie is predicted to reach 5% growth in 2020 which will directly affect many other areas such as Orillia.
Real estate remains a good investment and the trend continues to show steady growth for 2020 as it has in the past five years. As of the start of December, it looks like 2019 will end with about 5% growth in average homes sale prices for the area of Orillia, Oro-Medonte, Severn and Ramara. Below is a look at how the average price for homes has changed in the Lake Country region over the past 5 years. (2019 is the average as of the start of December when posting these figures).
(Lake Country 2014 – December 2019)
(City of Barrie 2014 – December 2019)
With the latest REMAX forecast for 2020 indicating a 5% growth in 2020 in the Barrie area it appears that next year should remain a balanced market in the Lake Country region as well and homes sales in 2020 should be much like 2019 for the area with an average increase slightly above the national average.
The full REMAX Barrie marketplace overview can be found HERE,