According to the Royal LePage House Price Survey released today, the aggregate price of a home in the Belleville/Trenton area increased 10.5 per cent year-over-year to $356,192 in the fourth quarter of 2020.
During that same period, the median price of a two-storey home increased 6.3 per cent to $332,909, while the median price of a bungalow increased 12.8 per cent to $376,235.
“Home prices in Belleville/Trenton continue to see strong gains as more and more buyers from Ottawa, the GTA and Durham flock to the region, seeking more square footage, less congestion and a simpler way of life with access to beaches,” said Jeff Nelles, broker, Royal LePage ProAlliance Realty. “Most buyers are professionals who know they will have the option to work from home for the foreseeable future, and this area is still very affordable compared to Kingston and Peterborough.”
Nelles added that sales are outpacing new listings by approximately 40 per cent.
“We’re seeing six to eight offers on almost every listing,” said Nelles. “It is becoming increasingly difficult for locals to afford upgrades in their own market, as demand from big city buyers continues to push prices up.”
Nelles expects this trend to continue in 2021 unless a large influx of inventory hits the market, which is not the current expectation.
Nationally, the aggregate price of a home in Canada increased 9.7 per cent year-over-year to $708,842 in the fourth quarter of 2020, as strong seller’s market conditions continued to shape Canada’s real estate market through the end of the year. The significant year-over-year increase in aggregate price was driven by price gains for larger properties. Sixty-four per cent of all regions surveyed showed year-over-year median price gains of more than 10 per cent for two-storey homes.
The Royal LePage National House Price Composite is compiled from proprietary property data, nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the median price of a standard two-storey home rose 11.2 per cent year-over-year to $840,628, while the median price of a bungalow increased 10.0 per cent to $592,899. The median price of a condominium increased 3.9 per cent year-over-year to $509,239. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.
“In April 2020, we issued our pandemic period forecast for Canadian real estate, the principle prediction being that unexpectedly soft spring home prices, historically low interest rates, and years of pent-up demand would trigger a sharp recovery of sales volumes and rising property prices in the second half of the year,” said Phil Soper, president and CEO of Royal LePage. “As we close the books on the strangest year in my long career, ‘recovery’ proved to be an understatement. Looking at fourth quarter results we can state without hyperbole that the health crisis triggered a real estate boom.”
Soper added that the surge in sales that characterized the second half of the year is a sign that Canadians feel confident buying and selling properties during the pandemic.
“The real estate industry has shown that buying and selling property can be done safely as much of the search and purchase process can now be done online,” he said. “Our real estate agents can help families looking for a home with efficient digital showings. Physical private viewings of a short-listed property should be done in compliance with best practice and public health guidelines. Clients can use their phone or computer to complete the transaction, leveraging today’s advanced technologies.
“High levels of unresolved housing demand and low inventory levels will likely characterize the 2021 spring market, putting further upward pressure on housing values, particularly in the detached and larger townhome segments, as families with access to extremely low borrowing costs trade traditionally desirable urban locations for more personal space,” he continued.
In December 2020, Royal LePage issued its 2021 forecast stating that the national aggregate price of a home is expected to increase 5.5 per cent year-over-year. To read more about Royal LePage’s national and major urban centre forecast, please go to rlp.ca/2021-forecast.