According to Canadian housing market outlook for 2020, the report suggests the average house price in Canada could rise by 3.7%.
According to numbers recently released by the Toronto Real Estate Board, house prices (all home types combined) currently sit at $725,174 in the inventory-strapped city of Brampton.
Brampton is expected to remain a sellers’ market in 2020.
While the forecasted increase isn’t great news for buyers on a budget, it doesn’t look like high housing costs are deterring prospective homeowners from entering the market.
According to the survey, 51% of Canadians are considering a home purchase in the next five years, up from 36% at the same time last year. The report also says that only two in ten Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019.
But while prices are expected to increase, a levelling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto. The 3.7% country-wide increase is a healthy one, the report says.
Not unexpectedly, the report notes that Toronto is set to experience a strong housing market in 2020, with lower unemployment rates, economic growth and improved overall affordability in the Greater Toronto Area driving the market forward.
While the Brampton housing market experienced steady growth after taking a dip in 2017, affordability remains a concern for homebuyers–especially since demand outpaces housing supply and will likely continue to do so in 2020.
That said, there is some new inventory in the city (and it’s also worth noting that 46 new residential towers have been proposed for the City Centre area alone over the next 10 years). According to the Canada Mortgage and Housing Corp, 13% of the new housing starts (or new housing construction) in the GTA took place in Brampton in 2019.
“This construction trend is expected to continue in 2020, bringing some relief to the inventory shortage in the region, and a corresponding moderation in the high single-digit price increases in the city’s condominium sector,” the report says.
The report says the city will remain an attractive one for homebuyers, as easy access to Toronto’s downtown core via major roadways and GO Transit will continue to have an impact on the market.
First-time homebuyers are expected to propel the Brampton housing market in 2020, especially as more condos (which remain the last affordable housing type) pop up in the city.
Southern Ontario is witnessing some incredibly strong price appreciation, with many regions still seeing double-digit gains . Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.
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