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canadian real estate trends 2020

Cost Comparison and Trends in Canadian Real Estate

2020 has been a year of highs and lows for the Canadian Real Estate Market

Fitting with the times we’re in, the CREA (Canadian Real Estate Association) couldn’t even publish a quarterly trend forecast in June. Instead, a notice on the webpage stated that “as providers of the most accurate and timely housing data and statistics, CREA believes the outlook to still be too uncertain to release a forecast at this time.”

However, there are still monthly forecasts. As of August 2020, the CREA’s monthly stats and forecast was quite positive, showing home prices and sales increasing across Canada (on average).

Canada’s Real Estate Market is Still Hot

July 2020 was a record-breaking month for many markets, which otherwise floundered during April and May. In fact, according to the CREA monthly stats report, home sales rebounded by 26% in July 2020. Transactions increased country-wide on a month over month basis.

At this point, supply has exceeded demand in many markets, creating a competitive and busy market as we close out summer 2020. Major markets like London-St Thomas, Montreal, Ottawa and Vancouver have seen large jumps in average home prices in the past year.

Sales Increases in the 11 Largest Markets

  • 49.5% in the Greater Toronto Area (GTA)
  • 43.9% in Greater Vancouver
  • 39.1% in Montreal
  • 36.6% in the Fraser Valley
  • 31.8% in Hamilton-Burlington
  • 28.7% in Ottawa
  • 16.9% in London and St. Thomas
  • 15.7% in Calgary
  • 12.1% in Winnipeg
  • 9.7% in Edmonton
  • 5.4% in Quebec City

Housing Prices Across Canada

Note that this statistical information includes all housing types. This average price information is used for determining trends over time and doesn’t account for price ranges between dramatically different neighbourhoods or geographic areas.

  • Home prices have been rising nearly constantly for the past 17 years and between 2016 and 2019, pricing rose by 27.8% (18.5% adjusted for inflation).
  • Across Canada, the average home price rose to $571,471 in July 2020, compared to $500,164 in July 2019. B.C and Ontario are currently the most expensive markets, with average pricing of $699,300 and $606,400.
  • During 2019, Ottawa’s home prices rose the most at 7.38% (on average). Next was Halifax at 7.35%, Montreal at 6.37% and Toronto at 4.48%
  • There were also smaller increases in Quebec at 1.49%, Victoria at 1.13% and Winnipeg at 1.02%
  • Pricing fell in Vancouver at -4.05% and in two of Alberta’s major markets: Edmonton at -1.49% and Calgary at -0.94%

Average Housing Prices in Major Canadian Cities

East of Saskatchewan, most markets have seen strong sales and increasing prices. While prices have also risen in B.C. and Alberta, they haven’t been as distinctive. According to the CREA’s monthly statistical report, the actual (not seasonally adjusted) national average price for homes sold in July 2020 was $571,500, up a record-setting 14.3% from July 2019.

This number is influenced by the increases in Canada’s two hottest and most expensive markets- Greater Toronto (GTA) and Greater Vancouver. Without the increases in these markets, the national average home price would be around $117,000 less.

View CREA’s National Price Map

Greater Vancouver

Average Price- $1,031,400 in July 2020 compared to $987,200 in July 2019

Fraser Valley

Average Price- $858,300 in July 2020 compared to $824,500 in July 2019

Victoria

Average Price- $724,600 in July 2020 compared to $700,300 in July 2019

Edmonton

Average Price- $319,000 in July 2020 compared to $323,800 in July 2019

Calgary

Average Price- $411,200 in July 2020 compared to $417,200 in July 2019

Regina

Average Price- $272,200 in July 2020 compared to $269,000 in July 2019

Saskatoon

Average Price- $296,900 in July 2020 compared to $291,300 in July 2019

Winnipeg

Average Price- $284,000 in July 2020 compared to $270,500 in July 2019

Hamilton-Burlington

Average Price- $687,000 in July 2020 compared to $608,600 in July 2019

London-St Thomas

Average Price- $485,802 in July 2020 compared to $406,125 in July 2019

Montreal

Average Price- $401,300 in July 2020 compared to $351,700 in July 2019

Greater Toronto

Average Price- $880,400 in July 2020 compared to $800,200 in July 2019

Ottawa

Average Price- $506,700 in July 2020 compared to $428,100 in July 2019

Quebec City

Average Price- $258,000 in July 2020 compared to $244,800 in July 2019

Halifax- Dartmouth

Average Price- $363,692 in July 2020 compared to $310,251 in July 2019

St John

Average Price- $202,297 in July 2020 compared to $185,632 in July 2019

The Price Gap Between Condos and Single-Family Homes is Shrinking

The mortgage stress test is potentially making it tougher for home buyers to get into single family and more expensive types of homes (particularly in major cities). First time buyers in major markets may opt to purchase a condo over a single-family home. Condo prices are rising due to increased demand (4.2% year over year) and single-family home prices remain relatively similar – the gap between condo pricing and single-family home pricing is narrowing.

Single Family Homes Under Development

In 2018, there were 46,747 units under construction, according to the Canada Mortgage and Housing Corporation (CMHC). This was down from 55,000 units in 2017. As people move further away from the larger cities (Toronto and Vancouver) there are more opportunities for development and more affordable housing prices.  Within pricier markets, home buyers may often look for properties with rental income potential to offset the cost of the mortgage.

Multi-Family Homes Under Development

Condos are the leader for new home construction. In 2018, inventory still under construction reached almost 121,000 units (54% of new builds). Condos also eclipsed single family and rental homes (apartments) at 46,747 units and 56,394 units, respectively. Condos purchased by investors also supplement and supply the rental market. Thinking about getting into the market this fall? Whether you’re considering buying or selling or just want to know what your home is truly worth, our team offers accurate, comprehensive and professional residential real estate appraisal services. D. Fritz Appraisals serves clients from South to Central Vancouver Island (Victoria to Nanaimo) as well as the Gulf Islands. For any questions or to order an appraisal, contact us today.

Purchasing an Income Property with Equity

Purchasing an Income Property

Appraising Your Home to Access Capital for Purchasing an Income Property

How to get the best appraised value possible out of your current home to help you purchase an income property.

Own your own home and thinking about buying another? Excellent idea! Purchasing a secondary property to use as an income property or rental property is a smart investment and is often more possible than you’d think, especially if you have capital or home equity building up in your existing property. A local appraisal company working with a mortgage broker local to Victoria BC, can help you find out if you have enough capital or home equity in your existing property to qualify for a mortgage refinance so you can purchase another property.

Using your existing home’s equity, or increased value, to purchase an income property is something financial advisor and mortgage brokers advise all the time in order to help homeowners get ahead and secure financial freedom into their retirement years. With an income property, you’re allowing tenants to pay down your mortgage for you, and once it’s paid off, you have a property that has increased in value that you can either sell, pass on to your grown children, or downsize into and enjoy yourself.

Owning more than one property is made easy with a simple refinance of your existing mortgage. Mortgage refinancing involves having your existing mortgage re-evaluated so that you can borrow additional funds (access your home equity) from your lender to put towards a second property, or spend however else you’d like. This borrowing of extra money is made possible only if you have enough equity on your first home built up – and that is precisely where a real estate property appraisal company comes in!

Here are 5 things you should know about getting your home appraised to access your home equity.

1. An accurate appraisal of your property’s current market value is essential to the refinancing of a home.

If you’re like most homeowners, you are likely already somewhat aware of your home’s value in the current market. After all, you get annual assessments from BC Assessment, and you may see your neighbours selling their properties for top dollar, or receive letters from hopeful realtors informing you of how much your home is worth.

However, when it comes to something as important as refinancing, you want to make sure your home’s indeed got enough equity to refinance. A property appraisal company can confirm what you already know to be true, and in many cases delight you with an even higher number than you or your lender were thinking possible.

Remember, the cost for a property appraisal is a flat fee – it is NOT calculated as a percentage of your home’s appraised value.

2. The higher your home is appraised for, the more money you can borrow for your income property.

When refinancing, homeowners can borrow up to 80% of their home’s appraised value, minus the amount that is left still owing on their mortgage. For example, if your home’s appraised value is $500,000 and you have $125,000 still owing on the mortgage, you can apply for a refinancing amount up to $275,000. (80% of $500,000 is $400,000, minus the $125,000 still owing). This is $275,000 you can put towards your income property.

3. A home appraisal company comes to see your home in person, which provides a more accurate appraisal for your lender.

Depending on the property, some lenders can tell when a homeowner has equity or not, without even having to step foot on the property. They use an automated system that computes enough of an appraisal for them to deem that you have equity you can access during a mortgage refinance.

However, if you’re looking for a more on the nose appraisal, an on-site visit by a certified real estate property appraisal company is recommended and make a difference of tens of thousands of dollars in your appraisal, and therefore how much capital you can access for your desired income property.

See: Home Appraisals vs Online Home Value Calculators

4. There are several things you can do around your existing property to better your chances of a high appraisal.

Again, the more your home is deemed to be worth, the more capital you’ll be able to access to purchase a second property. To get the highest appraised value possible, you might have to work with your appraiser a little bit to make sure they have all the details they need to complete a fair assessment. For example, be sure to point out any renovations, additions, or value-added features to the home. Pointing out these items to the appraiser should be done in addition to Doing These 8 Things to Increase Your Home’s Appraised Value.

5. When you receive an appraisal that was much higher than you expected, you don’t have to borrow the maximum 80%.

As mentioned above, you can borrow up to 80% of your home’s equity to put towards your rental property, but that doesn’t mean you have to take the full 80%. It’s up to you when it comes to what amount to borrow. Take only what you need!

On a similar note, you don’t have to spend the borrowed money right away. When you access your capital and your refinancing is completed successfully, you’ll receive a cheque with the amount of money you’ve decided to borrow, which can be put into a savings account until you are ready to buy that perfect investment property. So, there’s no need to rush into anything, but it can be a nice comfort in knowing you have the highest amount possible ready to go when needed – achieved through a top-notch property appraisal.

Contact D. Fritz Appraisals at 250-413-7319 to book your next appraisal in Victoria, BC. We offer the fastest turnaround time in the region and can often deliver an appraisal within 24 hours. specialize in real estate appraisals for all situations, such mortgage refinancing, new construction, division of assets, and estates.