2017 Canadian Housing Market Outlook Report – Windsor Real Estate Expected to Rise 5%
Key findings in the Windsor-Essex area include:
- 2016 average residential sale price in Windsor is $226,468, a 13% increase
- Demand was strongest for single-family detached homes in the $140,000 to $300,000 range
- Buyers from the GTA and retirees are attracted by Windsor’s relatively low cost of living, residential real estate affordability and economic climate
- Average price is expected to increase 5% in 2017
Canadian home prices expected to increase by two per cent in 2017 as demand remains high
High demand and low supply continued to characterize Vancouver’s and Toronto’s housing markets throughout 2016 as competition from buyers for limited inventory of single-family homes pushed prices higher. The average residential sale price increased 13 per cent in Greater Vancouver to approximately $1,020,300 and rose 17 per cent in the Greater Toronto Area (GTA) to an estimated $725,857. Although demand remains high in both urban centres, limited inventory in the freehold market, the new 15 per cent foreign-buyer tax in Vancouver and the recent tightening of mortgage rules by the federal government are expected to soften market activity in the short term. In 2017, RE/MAX estimates average residential sale price will increase by two and eight per cent in Greater Vancouver and the GTA respectively.
“RE/MAX expects the average home price in Canada to increase two per cent in 2017,” said Christopher Alexander, Regional Director, RE/MAX INTEGRA Ontario-Atlantic Canada Region. “Strong demand in Canada’s urban centres is expected to continue throughout next year and into the foreseeable future as almost half of Canadians plan to buy a home in the next five to ten years according to a recent RE/MAX survey.”
Regional markets in close proximity to Canada’s highest-price cities continued to experience steady interest from local move-up buyers and buyers from these cities (“move-over” buyers) who are looking to find a balance between affordability and square footage. This year there were considerable year-over-year average price increases in Barrie (16 per cent), Hamilton-Burlington (20 per cent), Fraser Valley (20 per cent) and Kelowna (14 per cent).
Regulation changes at both the provincial and federal level towards the end of 2016 are already starting to impact activity in certain markets. The 15 per cent foreign buyer tax is expected to slow this trend somewhat, as price appreciation declines in Vancouver have resulted in some potential sellers staying in the Lower Mainland. The ripple effect of the foreign buyer tax can also be felt in the upper end of the GTA and Montreal markets as some foreign investors are expected to look for properties in these regions rather than Vancouver. Measures taken by the federal government to tighten mortgage insurance criteria for new home buyers is expected to temper local first-time buyer activity across the country in the short term, but is not expected to have a long-term impact in most regions.
Home ownership remains a priority for Canadians, with 53 per cent of respondents in a recent RE/MAX survey conducted by Leger expressing intent to purchase a home and 47 per cent expressing intent to do so in the next five to 10 years. Nearly one in three (30 per cent) Canadians plan to use the purchase of a home as an investment strategy to help fund their retirement, and 42 per cent of millennial respondents view it as a retirement funding strategy. A proportion of Canadians would also consider unconventional home financing options to realize their dream of ownership such as: purchasing a home with a family member (33 per cent); renting a room on a vacation rental site like Airbnb (15 per cent); renting out a room in their home (22 per cent); or even purchasing a home with a roommate (9 per cent).
The housing markets in Calgary and Edmonton remained relatively stable, with moderate declines in the number of sales and average residential sale price as a result of the prolonged recovery of the oil sector over the past two years. The average residential sale price in Edmonton decreased slightly, by two per cent year-over-year in 2016, while Calgary’s average residential sale price decreased by four per cent. Buyer activity is expected to pick up slightly in the second half of 2017 if employment opportunities in the oil sector continue to gradually come back to the province.
“The housing markets in Alberta’s two largest cities have remained resilient in 2016,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Low oil prices will continue to lead to tempered consumer confidence, but ongoing development projects in Edmonton and the recent approval of the Trans Mountain pipeline are expected to provide a boost to the provincial economy and help keep housing markets relatively stable in 2017.”
High inventory continues to be a factor in many regions including Regina, Montreal, Saint John and St. John’s, offering a good selection of product to first-time and move-up buyers in these cities. Local infrastructure projects and initiatives, such as preparations for Montreal’s 375th anniversary celebrations in 2017, are anticipated to provide a boost to these economies and their real estate markets next year.
The RE/MAX 2017 average residential sale price expectation for Canada is an increase of two per cent as Canadians continue to see home ownership as an important milestone as well as a good investment.
Key Findings from 2017 RE/MAX Housing Market Outlook Omnibus Survey
While home prices across the country continue to increase, home ownership remains important to Canadians. Just under two-thirds of the population currently owns their primary residence, either outright or with a mortgage, and over 50 per cent of Canadians intend to buy a home at some point in their lives. A number of Canadians are also considering alternative financing methods such as purchasing a home with a family member, renting out a room in their home to a tenant or on a vacation rental site and even purchasing a home with a roommate in order to make their dreams of home ownership possible. For one third of Canadians, home ownership is viewed as an important part of their investment strategy to help fund retirement.
- 61 per cent of Canadians own their primary residence, either outright or with a mortgage
- British Columbia = 54 per cent
- Alberta = 67 per cent
- Saskatchewan and Manitoba = 72 per cent
- Ontario = 58 per cent
- Quebec = 59 per cent
- Atlantic Canada = 72 per cent
- 53 per cent of Canadians intend to buy a home at some point in their lives and almost half (47 per cent) intend to do so in the next 5-10 years
- British Columbia = 29 per cent
- Alberta = 55 per cent
- Saskatchewan and Manitoba = 36 per cent
- Ontario = 52 per cent
- Quebec = 52 per cent
- Atlantic Canada = 36 per cent
- Nearly 1 in 3 (30 per cent) Canadians plan to use the purchase of a home as an investment strategy to help fund their retirement; This number is higher for Canadian millennials at 42 per cent
- British Columbia = 18 per cent
- Alberta = 27 per cent
- Saskatchewan and Manitoba = 23 per cent
- Ontario = 32 per cent
- Quebec = 44 per cent
- Atlantic Canada = 14 per cent
- A number of Canadians are considering “alternative” ways to finance home ownership.
- 1 in 3 Canadians would consider purchasing a home with a family member
- Canadians 65+ = 17 per cent
- Canadians 55-64 = 22 per cent
- Canadians 45-54 = 30 per cent
- Canadians 35-44 = 36 per cent
- Canadians 18- 34 = 50 per cent
- 22 per cent of Canadians would rent out a room in their home
- Canadians 65+ = 9 per cent
- Canadians 55-64 = 13 per cent
- Canadians 45-54 = 21 per cent
- Canadians 35-44 = 21 per cent
- Canadians 18- 34 = 38 per cent
- 15 per cent would rent a room on a vacation rental site like Airbnb to help finance their homes
- Canadians 65+ = 4 per cent
- Canadians 55-64 = 8 per cent
- Canadians 45-54 = 14 per cent
- Canadians 35-44 = 16 per cent
- Canadians 18- 34 = 28 per cent
- 26 per cent would rent out a separate suite in their home to a tenant
- Canadians 65+ = 17 per cent
- Canadians 55-64 = 18 per cent
- Canadians 45-54 = 22 per cent
- Canadians 35-44 = 31 per cent
- Canadians 18- 34 = 37 per cent
- 9 per cent of Canadians would consider purchasing a home with a roommate(s)
- Canadians 65+ = 1 per cent
- Canadians 55-64 = 3 per cent
- Canadians 45-54 = 7 per cent
- Canadians 35-44 = 8 per cent
- Canadians 18- 34 = 19 per cent