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February 2021 | Muskoka Market Insight

  • February 2021 | Muskoka Market Insight
  • February 2021 | Muskoka Market Insight
  • February 2021 | Muskoka Market Insight
  • February 2021 | Muskoka Market Insight
  • February 2021 | Muskoka Market Insight

February 2021 in a nutshell…

The largest y-o-y gains – above 30% – were recorded in the Lakelands region of Ontario cottage country, Northumberland Hills, Quinte & District, Tillsonburg District and Woodstock-Ingersoll.

Since we all know how the current market trends, let’s look at what CREA has to say about the future of Real Estate in Canada…

“Current trends and the outlook for housing market fundamentals suggest activity will remain strong through 2021, resulting in a record number of sales. That said, activity is forecast to begin returning to more typical levels over time. 2022 is expected to see fewer MLS® transactions compared to 2021, while remaining above all other years on record.

National home sales are forecast to fall by 12.6% to around 614,000 units in 2022. This easing trend is expected to play out across Canada as higher prices and a lack of available supply impacts all areas of the country, as previously pent-up demand is exhausted, and as the urgency to purchase a home base to ride out the pandemic fades along with the virus itself.

Over the past several years, record levels of international immigration (not including 2020), low interest rates, and an increasingly middle-aged Millennial cohort have all fueled strong household formation and housing demand in Canada. Recall that prior to COVID-19, the number of available listings nationally was already at a 14-year low and the national number of months of inventory on the eve of the lockdowns had fallen to below four months (seller’s market territory). COVID-19 has only served to supercharge trends that were already present.

The pandemic has changed the relationship that many people have with housing. For many, home has been everything over the last year. It has resulted in an increased desire for a place of one’s own, for more spacious properties and bigger yards. At the same time, the calculus around home’s proximity to work, typically one of the biggest factors in choosing where to live, has changed considerably this year, and probably to some extent forever. As a result, strong first-time home buying activity is teaming up with a surge in existing owners choosing to pull up stakes and move in recent months.

National home sales are forecast to fall by 12.6% to around 614,000 units in 2022. This easing trend is expected to play out across Canada as higher prices and a lack of available supply impacts all areas of the country, as previously pent-up demand is exhausted, and as the urgency to purchase a home base to ride out the pandemic fades along with the virus itself.”

CREA Quarterly Forecasts

https://www.crea.ca/housing-market-stats/quarterly-forecasts/

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