Modest home price growth expected for 2019: ReMax, Royal LePage

Dated: December 18 2018

Views: 59

Modest home price growth expected for 2019: Re/Max, Royal LePage

Montreal housing

TORONTO -- Home prices across the country are expected to rise in 2019, but only at a moderate pace compared with recent years, according to two of Canada's largest residential real estate brokerages.

Royal LePage is anticipating the national median home price will increase by 1.2 per cent in 2019, with prices in Toronto and the surrounding areas expected to rise 1.3 per cent to $854,552.

Home prices in Greater Vancouver are forecast to go up by just 0.6 per cent to $1.29 million, while home prices in Montreal and the nearby region are expected to see the largest rise out of Canada's biggest cities, with home prices anticipated to jump three per cent to $421,306 in 2019.

Royal LePage CEO Phil Soper said the national housing market is expected to remain in a "correctional cycle" that began this year, with home prices appreciating at a "snail's pace."

"Markets aren't perfect. They overshoot and then they must correct," he said in a statement.

The Royal LePage report blamed the "tepid pace" of price growth on a number of factors including rising interest rates, global trade risks and the low price of Canadian crude.

It noted that would-be buyers who had for years been shut out of hot markets in Toronto and Vancouver may have a bigger opportunity to purchase in 2019. It says it expects a jump in sales activity come spring.

Meanwhile, in a separate report Tuesday, Re/Max said it expects average home sale prices to go up by 1.7 per cent in the new year.

It also anticipates housing markets across the country will stabilize as Canadians feel a bigger impact from higher interest rates.

"Demand isn't as strong as it was in the past but it is still very, very strong," said Christopher Alexander, executive vice-president and regional director of Re/Max of Ontario-Atlantic Canada.

"The government has said it may not be as conservative with raising rates as they have been in the past. That's why there's uncertainty. People don't really know what to expect."

Re/Max expects average home sale prices in Vancouver to fall three per cent next year, after increasing two per cent this year.

The report forecasts that some smaller cities outside of the big urban areas will see large price growth, with London, Ont., leading with a projected increase of 17 per cent, followed by Chilliwack, B.C., and Windsor, Ont., at 13 per cent.

Alexander said a more stable real estate market is positive for both buyers and sellers.

"The threat of a bubble bursting isn't around the corner, and at the same time, there is going to be a little bit of an appreciation so people will get a return on their investment," he said.

"We're in healthy territory right now and homebuyers and sellers can feel confident that the market shouldn't' go too drastically in either direction."

Blog author image

Steven Axford

Steve is a award winning Realtor in Victoria BC, with his listings selling 53.03% faster than average and for 1.01% MORE money. Growing up in Victoria, BC and has always been active in his community. ....

Latest Blog Posts

Victoria's $100 million Customs House luxury condominium project nears completion

Three years after touring Victoria’s Customs House mixed-use condominium and retail offering during its interior de-construction, Citified is honoured to be the first media

Read More

Three Things to Prioritize When Selling Your Home!

Just because it’s a “Sellers Market” it doesn’t mean you are guaranteed success no matter what. Check out our video below!3 Things to Prioritize When Selling Your?

Read More

Unwavering demand reinforces need to support supply of homes!

June 1, 2021 The Victoria market continued to show its strength through the month of May, with a near record setting pace for sales and ongoing record low inventory levels. A total of 1,049

Read More

Housing mania' sends affordability to 31-year low

The pandemic-driven surge in residential real estate demand has sent Canadian housing affordability spiraling to its worst level in more than three decades, according to a new report from RBC

Read More