The Canadian housing market looks bright in 2020 as markets stabilize, consumer confidence returns
Toronto is set to experience a strong housing market in 2020. Lower unemployment rates, economic growth, and improved overall affordability in the Greater Toronto Area are expected to drive the market forward. The estimated average sale price increase for 2020 is six percent. The city saw 76,413 transactions in 2019, up 12 percent from last year (68,064). While Toronto is experiencing its “busiest” construction season ever, the housing supply still falls short of the demands of the city’s rapidly growing population.
Cities such as Ottawa and Windsor are seller’s markets, showing substantial increases in average residential sale price at 11.7 and 11 percent, respectively. This strong growth is expected to continue into 2020, with Ottawa’s new LRT system impacting surrounding development and Windsor’s continued affordability attracting young professionals to the area. Buyers are also not burdened by the mortgage stress test, as they were in 2018.
The Niagara region is also showing strong growth, with average residential sale price increasing almost 13 percent, from $378,517 in 2018 to $427,487.50 in 2019. Value conscious consumers from the Greater Toronto Area area buying in droves, with many choosing to live in the region while commuting to Toronto. Seller’s markets dominate the province