Regina to continue as a balanced market in 2021, prices to decrease 1.5%
Regina real estate is likely to continue as a balanced market in 2021, however, COVID-19’s impact on the local economy could result in lower sales for the region in 2021. The average sale price in Regina increased by 2% to $307,900 in 2020 (Jan. 1 – Oct. 31), compared to $301,400 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for Regina real estate in 2021 is a decrease of 1.5% in average sale price to approximately $303,281.50.
Who’s Driving Demand for Regina Real Estate?
Move-up buyers are currently driving demand in the Regina real estate market, which is expected to continue into 2021. The most popular property type with move-over buyers are one-storey detached homes.
First-time homebuyers in Regina are typically young couples looking for single-detached homes. These properties range in price from $250,000 to $350,000. It may be more difficult for first-time homebuyers to enter the market in 2021 if they have experienced job losses due to COVID-19. Regina has seen very little hesitation from first-time homebuyers entering the market, as they were active in 2020.
Move-up buyers in the Regina market are typically young couples, and they have very little hesitation when it comes to entering the housing market in 2020. The only issues that move-up buyers have experienced when trying to purchase a home in 2020 is that they may have trouble getting financing as insurers have been more critical.
The condominium market in Regina is most popular with single homebuyers, with the average price of a Regina condo being $222,700. The condo market has fallen slightly, while all other markets are generally doing well. Families are typically wanting to be in larger homes with more space, so there has been more supply and less demand for multi-family homes.
Regina’s luxury market is currently driven by move-up buyers, with the average starting price for a luxury home in Regina being $700,000. COVID-19 does not seem to have had an impact on Regina’s luxury market, and these numbers are expected to remain the same into 2021.
Regina New-Home Construction
The Regina new-home construction has remained steady in 2020, and this is expected to continue into the new year. The number of new homes being constructed is sufficient to meet current demand. New-home sale prices are similar to those of resale properties on the market.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”