13 December 2019

“The oldest millennials are in their 30s. Having kids, they are starting to focus on suburbs”, – Phil Soper, Royal LePage president and CEO, said. “In our opinion, the period of disproportionately higher price growth in the condo sector is coming to an end, as the interest in detached homes is back again”.

However, the agency expects median condo prices to grow by 6% in Toronto and by 5% in Montreal. Ottawa may show 3.5%, and Vancouver will follow with 3%.

Nationwide, potential homebuyers who had to postpone their purchases because of the stricter mortgage rules, introduced last year, are returning to the market, and it will drive the demand along with immigration, Soper believes. In case the economy weakens, and the central bank cuts the rates, it will lead to higher real estate prices.

“Lower rates tend to encourage new demand,” – Soper noted. “It means stronger prices growth in areas with healthy employment.”