Durham housing market to shift into balance in 2021, prices expected to rise 3%
The Durham housing market will likely see a shift from the current seller’s market into more balanced territory in 2021. The trend diverges from many other Ontario housing markets, which are expected to sit in strong seller’s market territory next year, which is characterized by low inventory and rising demand. Despite the pending balance, average selling price of Durham Region homes increased to $696,351 in 2020 (Jan. 1 – Oct. 31), up from $611,342 in 2019 (Jan. 1 – Dec. 31). The RE/MAX outlook for Durham residential real estate in 2021 is an increase in average price of 3%, to approximately $717,241 across all property types.
Demand in the Durham housing market is currently outpacing supply, which has had an impact on average home prices across the region. There are currently 1.1 months of supply available. Days on the market in 2021 are anticipated to increase, if inventory grows as expected.
Who’s driving the Durham housing market?
An influx of buyers from outside Durham was a prominent trend in the region in 2020, with buyers seeking larger homes and more green space. This has been common across many Canadian housing markets as well as regions abroad in the wake of COVID-19, with home-buying preferences shifting in favour of more space, less density and lower prices.
Move-up buyers are currently driving the Durham market, and are projected to continue doing so in 2021. These buyers are typically looking for two-storey detached homes or townhomes, based on their affordability, lower land transfer tax, and added space in relation to condominium properties.
Durham’s first-time homebuyers are most commonly young couples whose average price to enter the market is around $600,000. The demand for luxury properties has stayed the same since the start of 2020 and is expected to remain the same in 2020.
The most in-demand neighbourhoods in Ottawa are Oshawa, Clarington and Whitby, based on sales in 2020. These neighbourhoods are also expected to remain in highest demand in 2021.
An expected influx of immigration, continued work-from-home mandates, and the growing infrastructure of the region are expected to be some of the most prominent factors impacting average sale price in 2021.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
About the 2021 RE/MAX Housing Market Outlook Report
The 2021 RE/MAX Housing Market Outlook Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments.