Home prices to continue to climb in 2021 as unmet demand carries over: Royal LePage

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TORONTO — A new forecast by Royal LePage says home prices are expected to climb higher next year as unmet demand in the second half of 2020 carries over into 2021.

The firm says its aggregate home price in Canada is expected to rise 5.5 per cent year-over-year to $746,100 in 2021.

Royal LePage chief executive Phil Soper says leading indicators are pointing to a market that favours property sellers in the coming spring market.

The report says the value of single-family houses and homes outside of major urban markets are forecast to continue to outpace city core condominiums.

It says the difference will be driven both by Canadians seeking larger homes and broad-based demographic trends, including baby boomer retirement.

The median price of a two-storey detached house is expected to increase 6.0 per cent to $890,100, while the median condominium price is forecasted to rise 2.25 per cent to 522,700.