RE/MAX HALLMARK ONTARIO HOUSING MARKET REPORT Surprising Booming Economy!
Tuesday, January 18 @ 10:30AM
Agenda 01
2021 Market Recap
02
Fastest Growing Buyers Segment
03
Shelter & Supply Chain Inflation
04
A Supply or Demand Problem
05
What’s The Fix? & 2022 Outlook
2021 Market Recap 1. Real estate markets soared by monetary stimulus. 2. Pent-up demand due to low interest rate & household savings. 3. Vaccinations and resurgence in economic growth. 4. Bank of Mom and Dad.
Performance by Market & Zero-Covid Policy
Canadian Employment Highlights Ø Worked from home 23.8% of labour force. Ø Core-aged aged 25 to 54, employment increased +2.3% hig her than in February 2020. Ø Employment increased in Ontario and Saskatchewan, while it declined in Newfoundland and Labrador. Ø Unemployment rate was 5.9%
Ontario 2021 Employment Snapshot
Ontario Real Estate Buyers
First Time Buyers Motivations
Fastest Growing Buyers Segment
Ø Investors owns 34.7% of homes built after 2016. Ø Investors owned 21.6% of total housing stock in 2020. Ø 1 in 5 homes are investor-owned and 1 in 3 in new homes. Ø 9.2% of condos owned by non-resident homeowners in 2020.
Investor Activity Across Canada
Mortgage Segment
Shelter Inflation
Canadian Housing Affordability Index (HAI)
A Supply Problem or It’s A Demand Issue Ø Excessively low interest rates incentivizing too much demand. Ø Immigration policies Ø Housing starts surged above 300,000 units in November. Ø Housing completions are at a record high. Ø Listings for existing homes are higher than before the pandemic.
55% Screen Shot 2022-01-16 at 5.39.10 PM
32% Bubble will burst– Say around 10%
7 in 10 Wants to own a property one day
8 in 10 Find it ot has become more difficult to purchase
62% Considered moving to smaller communities
Where Are Ontarians Moving?
Cost of Rent in Ontario
Mortgage Default Rates- Oct 31st, 2021
Ontarians Take Sides on Housing Market. 55% Rise by 10% or more
32% Bubble will burst– Say around 10%
7 in 10 Wants to own a property one day
8 in 10 Find it ot has become more difficult to purchase
62% Considered moving to smaller communities
81% Increase Since Q3 2020
55% Screen Shot 2022-01-16 at 5.39.10 PM
32% Bubble will burst– Say around 10%
7 in 10 Wants to own a property one day
8 in 10 Find it ot has become more difficult to purchase
62% Considered moving to smaller communities
LONDON Average Home Prices increased to $674,000
OTTAWA Average Home Prices increased to $716,000
Kitchener - Waterloo Average Home Prices increased to $842,000
Windsor Average Home Prices increased to $571,000
Hamilton Average Home Prices increased to $922,000
TOP 5 ONTARIO CITIES YOY GROWTH
Toronto 2021 Snapshot Freehold
Condo
28%
18%
Percent Change
Percent Change
$1.3M Jan-Dec
$712K Jan-Dec
Ottawa 2021 Snapshot Freehold
Condo
18%
12%
Percent Change
Percent Change
$710K
$399K
Jan-Dec
Jan-Dec
London - St. Thomas 2021 SNAPSHOT Freehold
Condo
26.7%
33%
Percent Change
Percent Change
$707K
$371K
Jan-Dec
Jan-Dec
Durham Region 2021 Snapshot Freehold
Condo
31%
21%
Percent Change
Percent Change
$947K
$560K
Jan-Dec
Jan-Dec
York Region 2021 Snapshot Freehold
Condo
17%
19%
Percent Change
Percent Change
$1.290M Jan-Dec
$667K Jan-Dec
Simcoe County 2021 Snapshot Freehold
Condo
24.4%
29%
Percent Change
Percent Change
$790K Jan-Dec
$605K Jan-Dec
Oakville 2021 Snapshot Freehold
Condo
21.2%
14%
Percent Change
Percent Change
$1.748M Jan-Dec
$822K Jan-Dec
RE/MAX Hallmark Vs Ontario Market Snapshot
108% Vs 101.33
$ 23,433
3 Days Faster
SP Vs LP
DOM
*Average price is $912,000 which is an additional $60,000 net to the sellers
RE/MAX Hallmark 2021 FUN FACTS Jan to Dec 2021
NUMBER OF SHOWINGS
TOTAL VOLUME
TOTAL TRANSACTIONS
361,692
+18.686B
+28,900
NUMBER OF TRAINING AND OFFICE MEETINGS
TOTAL PARTICIPANTS ON ZOOM
1,669
34,296
1 TRANSACTION EVERY
18 Minutes
Is Market Headed For A Repeat of 2017?
$
Housing Forcast
What’s The Fix? INTEREST RATE
IMMIGRATION POLICIES
SPECULATIVE & MORTGAGE POLICIES PROVINCIAL HOUSING & TRANSIT POLICY
2022 Market 01 02 03 04 05
Strong Growth in Condo Market.
Interest Rate Increases but Money Still Cheap. Increase of Inventory , Possibly 10% drop in transactions but No significant drop in list price. Provincial Election & Housing Policies. Out of Major Urban Centers Remain the Main Driver. Time to Explore other Provinces.
QUESTIONS?
THANK YOU