Brampton housing market to favour sellers in 2021, prices expected to rise 5%
The Brampton housing market is expected to see continued seller’s market conditions in 2021, impacted by lack of housing supply that’s prompting rising average prices. Low inventory has been a common trend across many Ontario housing markets, with price growth reported in most markets. Indeed, Brampton real estate saw average prices rise to $835,088 in 2020 (Jan. 1-Oct. 31) compared to $727,035 in 2019 (Jan. 1-Dec. 31). It is anticipated that the market will see further growth during the first few months of the year. Thus, the RE/MAX outlook for Brampton real estate is an increase of 5% in average price to $876,830 across all property types.
Who’s driving the Brampton housing market?
Brampton is currently a seller’s market and driven by move-up buyers. Two-story detached homes have seen the most activity in 2020, based on buyer sentiments shifting toward more space and bigger properties. This had been trending across many Canadian housing markets as well as regions abroad, as homebuyers seek more square footage and green space outside of urban areas in the wake of COVID-19. Factors impacting this broader trend include the rise in remote work, the desire for more space and less density, as well as lower housing prices.
The typical first-time homebuyers in Brampton are young couples looking for condominiums in the price range of $400,000 to $500,000. In 2021, this average starter price is expected to shift to $425,000-$525,000.
Families make up the majority of move-up buyers in the Brampton housing market, with many currently experiencing challenges moving up in the market due to lack of housing supply.
Brampton’s luxury market is also driven by move-up buyers, with prices for luxury properties starting in the $2 million ballpark. This region has seen an increase in demand for luxury homes since the start of COVID-19, a trend that is expected to continue in 2021.
Brampton’s top three neighbourhoods in the region based on 2020 sales are Sandringham Wellington, North West and Fletcher’s Meadow. These areas are expected to remain in high demand 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:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”