Kitchener, Ontario 2021 Market Outlook
Real estate outlook for 2021
According to a panel of more than 100 economists and housing experts, the next recession is expected to start in 2021. A few even commented it may begin later in 2019, while another substantial portion predicts that a recession will occur in 2021. But unlike last time, the housing market won’t be the reason. Trade policy, a geopolitical crisis and/or a stock market correction were the identifying factors found by the panelists to cause the recession. But that doesn’t mean that housing will be resistant to the effects of a recession. Even if the housing market face downfall, it will not contribute in recession, 51% of the panelists expect that home buying will be lower in 2020, while 17% think home buying will increase.
Prices rising or stable outlook
The Kitchener housing market will continue to favor sellers in 2020, with residential prices expected to increase by seven per cent. Kitchener is still in seller’s market territory in 2019, and the trend will likely continue into 2020 due to low inventory and multiple-offer scenarios in the region. Housing affordability has been a major concern over the past year. Construction of affordable housing has not been able to keep up with the demand. Immigration, lack of supply and the after effects of stress test are all expected to continue putting pressure on housing market and impacting activity in 2020. First-time homebuyers and foreign buyers drove demand in 2019, with the most in-demand neighbourhoods including Doon, Laurentian Hills and Huron Park. Continued population growth and strong employment numbers are expected to boost the Kitchener housing market in 2020.
Market growth & stability
Estimated average residential sales price in 2020 will be $499,002 while it is $466,357 for 2019. A 7% increase in sales prices is expected due to higher demand versus supply. Continued population growth and strong employment numbers are expected to boost the residential market in Kitchener. A seller’s market is estimated to continue in Kitchener in 2020, due to low inventory and continued multiple offers per household in the region. Immigration, lack of supply and the after effects of the stress test are all expected to continue impacting market activity in 2020. Young couples, move-up buyers and young families have driving demand to buy properties in this city. One- and two-storey detached homes will be the popular properties. The doon area will be the hottest neighbourhoods.
Increasing or decreasing
A 7% increase in sales prices is expected due to higher demand versus supply. Estimated average residential sales price in 2020 will be $499,002 while it is $466,357 for 2019.
Real estate market growth:
Real estate market is experiencing a continuous growth. Southern Ontario is going to see some incredibly strong price appreciation, with many other areas still seeing double-digit gains. Due to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.