The market is expected to see further price growth, mainly driven by supply issues
The Windsor-Essex area is expected to remain a seller’s market in 2020, with bidding wars becoming an increasingly normal occurrence.
Last year, a significant proportion of residential listings received offers considerably above their asking prices. This trend is likely to hold for much of this year, according to the “2020 Economic Outlook” released earlier this week by the Windsor-Essex County Realtors Association.
The average home sales price is projected to grow by around 9% annually, reaching $365,747 in 2020.
Meanwhile, the number of new listings has declined noticeably during the latter half of the past year, CTV News reported.
Most of this slowdown was due to slower construction in 2018 and 2019, although housing starts will probably “stabilize” over the next two years.
This is especially apparent in red-hot Toronto, which is proving to be a reliable mirror of the national housing market as a whole.
The lack of housing supply, especially in the GTA, will provoke Canadian home price growth this year, TREB chief market analyst Jason Mercer said recently.
“Increased competition between buyers has resulted in an acceleration in price growth. Expect the rate of price growth to increase further if we see no relief on the listings supply front.”
