REAL ESTATE REPORT - CANADA EDITION - NET
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BRIAN BUFFINI’S
REAL ESTATE
REPORT
CANADA EDITION
1st BIANNUAL 2021
Table of
The new year is upon us!
Although the economy took
several unexpected twists and
Contents
turns in 2020, the housing
market remains on solid
ground as we enter 2021.
While there was plenty of buzz
surrounding the uncertain State of the Market 3
future of the economy and
Mortgage Stats 4
markets, much of it was only
noise. That’s why at Buffini & Today’s Buyer Profile 5
Company, my team and I are
Today’s Seller Profile 6
dedicated to cutting through
this noise and identifying the The Cost of Homeownership 7
market trends that matter.
Why I Work by Referral 8
We present this information
in Brian Buffini’s Real Estate
Report, a biannual publication
designed to help real estate
agents and their clients access
relevant, up-to-date statistics
to enhance market knowledge.
Dive into this guide to learn
all you need to know about
what’s happening in the
industry, both on the national
scene and as a whole.
2 Brian Buffini’s Real Estate Report CANADA EDITION
State of
the Market 66.3% Average MLS®
529,900
Home Price:
The state of the market varies across of Canadians Projected
Canada depending on your local own homes $607,250 home units
sold in 2020
market. Still, you’ll want to pay
attention to a few national trends.
Inventory Snapshot
Months
2.5 How long it would take for all
homes on the market to sell
• Record low level for inventory
• Long-term average: 5.3 months
Investment in Construction
Year-Over-Year* Overall
26.1% 8.5%
Semi-detached homes Row homes
11.3% 2.7%
Condo and rental apartments Single homes
3 Brian Buffini’s Real Estate Report CANADA EDITION *Not seasonally adjusted, as of September 2020 SOURCES: CREA, Statista, Statistics Canada, Trading Economics
Mortgage
Most Common Mortgage
for Homebuyers and
Stats
Refinancers
Fixed interest rate
5-year renewal term
Record low interest rates 25-year amortization period
are making mortgages more
attainable for many first-time
and move-up buyers. When Median Fixed Mortgage
financing a home or refinancing Rate for a 5-Year Term
a current mortgage, consult Bank of Canada does not expect to
with a trusted lender to review raise interest rates again until 2023,
the best options. making right now a great time to buy.
2011 4.56%
2012 4.23%
2013 4.13%
Minimum Qualifying rate of 4.79% is
based on Bank of Canada 2014 4.02%
Down Payment
rate and can be up to
by Law: 2015 3.73%
1.5% higher than other
5% * average posted rates
2016 3.69%
4.79% 2017 3.74%
Five-Year Benchmark
2018 4.37%
Qualifying Rate
Needed to Pass 2019 4.25%
“Stress Test”
2020** 3.81%
SOURCES: Statistics Canada, Bank of Canada (November
2020), Pete Evans, “Bank of Canada plans to keep interest rate
near zero until 2023,” CBC, November 2020
4 Brian Buffini’s Real Estate Report CANADA EDITION
*For houses under $500,000 **As of September 2020
Today’s Buyer Buyers’ Needs
Have Shifted
Top Reasons
to Buy
Profile 32%
Opting for
suburban
or rural
1 25%
Pursuit of a
a nicer home
communities
Housing needs have
instead of urban centres
changed following the 2 20%
COVID-19 pandemic, Current home
Looking for is no longer
which has increased buyer
demand across Canada. 44% more space
for personal
suitable
amenities
Here’s a snapshot of
where buyers now stand in
like a pool, balcony or
3 16%
large yard Low interest
the market and what they rates
are looking for in a home.
Non-
33% homeowners
likely to add a
90%
of homeowners
home office to are happy with
47.3% their property wishlist their purchase
Share of household
income needed
to cover
homeownership 56,909 Renters
costs Single-Family
Housing Starts
Are Ready
to Buy
7% 19%
Pre- Late
in All Areas, Those who plan pandemic 2020
2020* to buy in the
coming year:
5 Brian Buffini’s Real Estate Report CANADA EDITION *Seasonally Adjusted SOURCES: RBC, CMHC, RE/MAX Canada, Mortgage Professionals Canada
Today’s Top Reasons
to Sell
Top 5 Hottest
Markets to Watch
Seller Profile 34% 1 Vancouver — High
1 demand and a low
Current home supply may drive home
is no longer prices up, while builders
Low inventory levels have created a suitable complete new housing
hot market for sellers. Whether you’re projects paused by the
thinking of upgrading, downsizing or 2 15% pandemic.
moving closer to family, Pursuit of a 2 Toronto — Housing
understanding the latest nicer home demand in the city and
trends will help you surrounding suburbs
get top dollar for your
3 13% picked up as buyers’
Low interest needs changed due to
previous home. rates COVID-19.
3 Montreal — A steady
Home economy plus promising
prices increased The investor demand is
10.9% 73% average
home
helping the Montreal
market recover.
year-over-year
equity
in late 2020 4 Ottawa — Solid economic
Sales-to- of Canadian
growth, a hot pre-Covid
new-listings ratio: Home homeowners, as a
housing market and
74.3% resales increase
year-over-year*:
percentage of
home value. continuing new home
One of the highest construction have kept
levels on record 12.9% Ottawa in good shape.
7.3% above 5 Halifax — Pandemic
the 10-year migration helped Halifax
average maintain a hot real estate
market despite stalled
SOURCES: CREA, RBC Economics
economic growth.
6 Brian Buffini’s Real Estate Report CANADA EDITION (November 2020), PwC Emerging Trends
*As of November 2020 in Real Estate 2021
The Cost of
Homeownership National
Average
Home Price:
$607,250
Average Price by Province:
(As of October 2020)
1 Yukon: $456,771
2 Northwest Territories: $368,362 1
2
3 British Columbia: $811,028
4 Alberta: $413,948
9
5 Saskatchewan: $290,600
6 Manitoba: $316,280 3
4 8
5 6
7 Ontario: $742,101
11
8 Quebec: $403,726 7 10
12
9 Newfoundland and Labrador: $281,800
10 New Brunswick: $203,233
11 Prince Edward Island: $298,668
12 Nova Scotia: $304,590
7 Brian Buffini’s Real Estate Report CANADA EDITION
SOURCE: CREA (October 2020)
Why I Work by Referral
Relationships are more
important than transactions.
My business is built on relationships, One-Third
so I work to provide my clients of buyers received
with outstanding service and care recommendations for
during and long after a transaction. real estate agents and
mortgage lenders
You control my business. and brokers
Your referrals are the foundation
of my business, so I aim to exceed
your expectations every step of the way.
Service that continues after the sale.
I am devoted to serving your needs even after the
sale is complete. If you need a referral for a contractor,
32% of real
helpful advice or an agent for your friend or family estate agent
member, I am here to help.
recommendations
came right from family
members
“There is no lead more powerful than
one referred from someone you know —
someone who knows you, trusts you and
will put their name to you.”
— BRIAN BUFFINI
8 Brian Buffini’s Real Estate Report CANADA EDITION SOURCE: 2019 CMHC Mortgage Consumer Survey
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