The real estate landscape has changed over the past few months.
While condos have traditionally led the housing demand – 2020 has been a different year.
People have realized that they need more space and quieter neighbourhoods. A lot of young Canadian couples and families embarked on a search for bigger, more affordable housing last year.
A major reason for this switch is the increase in remote work and the general flexibility at most workplaces.
This shift is evident in data that has been released by different organizations.
For instance, when it comes to mortgage registrations, the Teranet Monthly Market Insights Report, published in December 2020, shows that while condo properties experienced the largest YoY decrease of 14.3% in mortgage registrations, single-family homes experienced a positive upward trend.
Row townhomes were up by 9.7% and semi-detached properties were up by 6%.
The Canadian Real Estate Association anticipates this trend to continue in 2021. The organization released a quarterly forecast where they estimated that the national average price will rise by 9.1% to $620,400.
The report also confirmed that, in Ontario, the continued strong demand for residential properties, outside of Toronto, has led to the erosion of active supply in the province. The supply shortage and increasing demand for larger single-family properties are expected to be the main drivers for the increase in the average home price.
Real estate companies share the sentiment.
According to the Royal LePage House Price Survey, the significant year-over-year increase in aggregate price has been driven by price gains for larger properties.
The survey goes on to state that 64% of all regions surveyed showed a year-over-year median price gain of more than 10% for two-storey homes.
For comparison, a breakdown of the median price according to housing type shows that the median price of a standard two-storey home rose 11.2% from last year while that of condominiums increased 3.9% from the year before.
This is why a single-family residential property is a key area of focus for Canadian real estate professionals.
Not only do these properties have a higher price point but are also enjoying an increase in demand.
At Teranet, we are committed to helping you identify these opportunities and verify key information to successfully and quickly close deals.
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