2020 Housing Review for Montreal, Vancouver, Ottawa, Calgary, Edmonton, Halifax, Winnipeg and Regina

October 16, 2020

Courtesy of Royal LePage media release – October 14, 2020

Greater Montreal Area 

In the Greater Montreal Area, the aggregate price of a home posted a 12.5 per cent increase year-over-year reaching $480,673 in the third quarter of 2020.When broken down by housing type, the median price of a standard two-storey home increased 13.9 per cent year-over-year to $610,956 in the third quarter, and the price of a bungalow rose 14.4 per cent year-over-year to $381,607. During the same period, condominiums in the region continued to see strong price appreciation, with the median price rising 8.6 per cent year-over-year to $362,180.

In the core of Montreal, the aggregate price of a home rose 12.2 per cent year-over-year to $610,898. Broken out by housing type, the median price of a standard two-storey home increased 14.6 per cent year-over-year to $825,801, and the price of a bungalow rose 10.6 per cent year-over-year to $557,961. During the same period, the median price of a condominium grew 8.8 per cent year-over-year to $448,496.

“After seven months of COVID-19 restrictions and social distancing measures to stop the spread of the pandemic, we began to see a significant increase in the number of new condominium listings in Montreal Centre in the third quarter,” said Dominic St-Pierre, vice-president and general manager, Royal LePage, for the Quebec region. “If this trend continues into the fourth quarter, we may see a slight decrease in condo prices, which would indicate a more balanced market. This will provide more opportunities for first-time buyers. In the single-family segment, there are currently no signs of a slowdown in sight; the vast majority of homeowners, who are currently selling, are receiving offers at or above the asking price, especially in the most in-demand neighbourhoods.”

Royal LePage is forecasting that the aggregate price of a home in the Greater Montreal Area will increase 9.5 per cent in the fourth quarter of 2020 compared to the same quarter last year.

Greater Vancouver 

The aggregate price of a home in Greater Vancouver increased 4.4 per cent year-over-year to $1,133,528 in the third quarter of 2020. Broken out by housing type, the median price of a standard two-storey home in Greater Vancouver increased 5.5 per cent year-over-year to $1,474,670 in the third quarter. During the same period, the median price of a condominium increased 3.1 per cent year-over-year to $659,122 while the median price of a bungalow increased 2.8 per cent to $1,232,858.

Price gains were more muted in the city’s centre where the aggregate price of a home rose 2.2 per cent year-over-year to $1,266,868. Broken out by housing type, the median price of a standard two-storey home increased 1.0 per cent year-over-year to $1,997,098, and the price of a bungalow rose 5.4 per cent year-over-year to $1,451,737. During the same period, the median price of a condominium grew 2.7 per cent year-over-year to $772,378.

“The pent up buyer demand from our delayed spring market continues to drive record sales and lift home prices. There are more buyers than properties and the market is tightening,” said Randy Ryalls, general manager, Royal LePage Sterling Realty. “September’s sales were exceptionally strong and multiple offers are common on well-priced homes.”

Ryalls added that low interest rates and healthy consumer confidence are driving the market.

“Demand is high across the Lower Mainland and strongest for detached properties in the Lower Mainland,” said Ryalls. “Due to their affordability, demand is healthy for condominiums despite current buyer preferences for more space and less shared amenities.”

Royal LePage is forecasting that the aggregate price of a home in Greater Vancouver will increase by 4.5 per cent in the fourth quarter of 2020 compared to the same quarter last year. 

Ottawa

Ottawa’s aggregate home price grew significantly during the third quarter, rising 12.0 per cent year-over-year to 536,610.

“Despite the pandemic, year-to-date unit sales are similar to 2019 and more than half of all listings continue to see multiple offers,” said John Rogan, broker, Royal LePage Performance Realty. “High demand and low inventory is an ongoing buyer concern whether they are looking for a property in Ottawa’s city centre or communities within an hour drive.”

The median price of a standard two-storey home increased 11.1 per cent year-over-year to $559,360 while the median price of a bungalow saw a strong 13.9 per cent year-over-year increase to $553,815. During the same period, the median price of a condominium saw an increase of 15.3 per cent year-over-year to $383,176.

Rogan added that as a national capital city, on an international level, as well as in comparison to other major Canadian cities, Ottawa real estate remains relatively affordable.

Royal LePage is forecasting that the aggregate price of a home in Ottawa will increase 8.5 per cent in the fourth quarter of 2020 compared to the same quarter last year. 

Calgary 

The aggregate price of a home in Calgary remained relatively flat year-over-year, increasing 0.5 per cent to $468,815 in the third quarter of 2020.

Broken out by housing type, the median price of a standard two-storey home increased 0.4 per cent year-over-year to $509,976, while the median price of a bungalow increased 2.1 per cent year-over-year to $499,549. Due to high inventory in the condominium segment, the median price of a condominium decreased 3.4 per cent year-over-year to $260,048.

“Strong demand for Calgary real estate has kept home prices stable. Sales during the summer were higher than those seen during the same period in 2019, and September was the strongest September for sales in the past 6 years,” said Corinne Lyall, broker and owner, Royal LePage Benchmark. “Demand has been highest in low density areas and in lower price ranges. We have also seen increased demand for properties outside of the city in our bedroom communities, especially recreational properties.”

Lyall added that while fewer sellers typically list in the late fall or early winter, buyers seem still active and eager to take advantage of exceptionally low interest rates. If demand remains higher than the seasonal norm, inventory is expected to tighten.

Royal LePage is forecasting that the aggregate price of a home in Calgary will remain relatively flat, decreasing 0.5 per cent in the fourth quarter of 2020 compared to the same quarter last year.

“While COVID-19 could bring further economic challenges, Calgary’s real estate market has already come down in price after years of a declining oil market. Home prices are not likely to have much room to decline further given other market fundamentals,” said Lyall. 

Edmonton 

The aggregate price of a home in Edmonton remained relatively flat, increasing 1.0 per cent year-over-year to $373,156 in the third quarter of 2020.

“Sellers who were holding out for a full market recovery over the past few years are bringing high quality two-storey listings to the market often at a lower price than purchased. Sellers in the mid- and entry-level of the market have seen robust activity,” said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate.

Broken out by housing type, the median price of a standard two-storey home increased 3.0 per cent year-over-year to $429,787 and the median price of a bungalow decreased 2.4 per cent to $356,710. In the same period, the median price of a condominium decreased 0.9 per cent to $220,949.

“Year-to-date, sales are down approximately 3 per cent compared to 2019. Considering the impact of COVID-19 on the economy, this is an indication of a fairly healthy real estate market,” said Shearer.

Royal LePage is forecasting that the aggregate price of a home in Edmonton will decrease 0.5 per cent in the fourth quarter of 2020 compared to the same quarter last year.

Shearer added that while Edmonton is in a balanced real estate market, demand for recreational real estate has risen significantly.

“Recreational properties within a two hour drive of the city are seeing demand and prices soar,” said Shearer. “Travel plans are on hold and buyers are figuring out how they want to enjoy family holidays. Shelter-in-place and social distancing guidelines have buyers looking to the great outdoors to relax and escape the city.” 

Halifax

The aggregate price of a home in Halifax increased 11.3 per cent year-over-year to $358,078 in the third quarter.

“Low inventory is fueling home prices. In some neighbourhoods we have very few listings and in other areas, there are none,” said Matt Honsberger, broker and owner, Royal LePage Atlantic. “Recently, we have seen a modest improvement in inventory that should provide some relief but many potential sellers are not listing because they don’t want to become buyers in Halifax’s hot market.”

The median price of a standard two-storey home increased 12.8 per cent year-over-year to $383,438. The median price of a bungalow increased 8.1 per cent year-over-year to $297,140, while the median price of a condominium saw an increase of 4.6 per cent year-over-year to $318,049.

Honsberger added that while most buyers are local, the region continues to see strong demand from buyers relocating from Ontario and Alberta.

“Most of the demand from outside the province is from Ontario buyers with a connection to the region. The prevalence of COVID-19 has been lower than other Canadian cities and Halifax is a great city in which to live and work,” said Honsberger. “Some buyers are retirees, but most buyers have secured jobs in the region or they will work remotely.”

Royal LePage is forecasting that the aggregate price of a home in Halifax to increase 12.0 per cent in the fourth quarter of 2020 compared to the same quarter last year. 

Winnipeg

The aggregate price of a home in Winnipeg increased 3.4 per cent year-over-year to $323,966 in the third quarter of 2020.

During the same period, the median price of a two-storey home increased 8.9 per cent year-over-year to $375,721, while the median price of a bungalow increased 2.2 per cent to $304,078.

“As a result of social distancing measures and more people working from home, the true value of the home has risen. Winnipeggers are living, working and playing more at home. Whether it’s building a deck or moving to a new neighbourhood for more space, we are looking for ways to improve our lifestyle through our property,” said Michael Froese, managing partner, Royal LePage Prime Real Estate.

Froese added that 33 per cent of homes in September sold for higher than list price, which is a direct result of a steep decline in inventory.

“Consumer confidence in the Winnipeg housing market is high and buyers are looking to take advantage of very low interest rates. However, inventory was down 38% in the third quarter compared to last year so it is a very competitive market,” said Froese. “Larger homes outside of the city centres are attracting a lot of interest.”

Royal LePage is forecasting that the aggregate price of a home in Winnipeg will increase 2.5 per cent in the fourth quarter of 2020 compared to the same quarter last year.

Regina

The aggregate home price in Regina increased 2.7 per cent year-over-year to $325,228 during the third quarter of 2020.

The median price of a standard two-storey home increased 7.8 per cent year-over-year, rising to $408,423 while the median price of a bungalow decreased 1.0 per cent to $288,798. During the same period, the median price of a condominium decreased 3.2 per cent to $214,112.

“Low interest rates and pent up demand from the spring market pause continue to fuel Regina’s real estate market,” said Mike Duggleby, managing partner, Royal LePage Regina Realty. “While not as frequent as previous months, we are still seeing multiple offers and fourth quarter sales are expected to be higher than last year.”

Duggleby added that robust sales have resulted in low inventory for entry-level and mid-range homes.

Royal LePage is forecasting that the aggregate price of a home in Regina will increase 2.5 per cent in the fourth quarter of 2020 compared to the same quarter last year.