In an analysis released in January, RBC Bank presented its Canadian housing market forecasts for 2021 and 2022.
Following growth of 8.5 per cent in 2020, the aggregate benchmark price in Canada is expected to increase by 8.4 per cent in 2021, while a more modest increase of 3.9 per cent is expected for the year 2022.
RBC forecasts benchmark price growth of 9 per cent in Quebec in 2021. The increases will be greater in smaller markets than in large urban centres.
As in 2020, weak supply will be responsible for price increases and sellers will maintain their advantage in most markets.
Property resales in Canada will reach 588,300 units in 2021, a new record. For 2022, the RBC forecasts a lower level of 507,000 transactions.
The shortage of supply, a slight increase in interest rates, deteriorating housing affordability and a decline in immigration are all factors that will limit sales growth in the Canadian real estate market over the next two years.