RE/MAX Canada brokers and
agents anticipate residential price growth across all small markets
analyzed, with average increases ranging from three per cent up to
20 per cent in some areas
- Quality of life factors (or liveability) are drawing many
Canadian homebuyers to small markets (40 per cent); followed by
housing affordability (37 per cent)
- More than a quarter of people living in larger markets (28 per
cent) would like to move to a smaller market in the next two
years
- A quarter of Canadians (25 per cent), have received family
support to purchase their first or current home; this number is
consistent in large and small markets
TORONTO and KELOWNA,
BC, April 13, 2022 /CNW/ -- A new report
from RE/MAX Canada finds that
"small markets" are attracting new residents and homebuyers
primarily for the liveability factors that they offer, such as
green spaces and neighbourhood dynamism, to name a few*, ahead of
affordability by a slim margin. The 2022 Small Markets Report
analyzed home sales and price trends in Canada's fastest-growing small markets, which
are defined as those with the highest population growth rates in
2021, and having a population of less than 440,000, with secondary
markets below 100,000**.
Residential prices in these communities have continued to rise
as a result of low inventory and growing demand. RE/MAX
Canada brokers and agents
anticipate residential price growth across all small markets
analyzed, with average increases ranging from three per cent up to
20 per cent in some regions through the remainder of 2022.
Unsurprisingly, some of these markets have already experienced
significant year-over-year price appreciation in the range of 17 to
38 per cent.
Activity in these communities has been fuelled in part by the
financial support that many Canadians have received from family,
with 25 per cent of Canadians using financial support from family
in order to purchase a home, according to a Leger survey
commissioned by RE/MAX Canada.
RE/MAX Canada brokers and agents
in 83 per cent of regions surveyed have also witnessed this trend
locally, specifically among first-time homebuyers.
"Liveability is all about quality of life, and as we all work
toward getting back to enjoying the things we love the most about
our communities, it's not surprising that it ranks so highly in
importance for Canadians – especially now," says Christopher Alexander, President, RE/MAX
Canada. "Despite the fact that the
national housing market still has challenges to overcome, smaller
communities are viable options for Canadian homebuyers looking for
the right balance between liveability and affordability. The
increase anticipated for home prices for the remainder of 2022 by
our network of brokers and agents is a good indicator of the appeal
of these communities."
However, the desire for liveable communities plays both ways,
with more than half of smaller market residents (57 per cent)
voicing concern that the distinct liveability qualities of their
town ─ its charm ─ may be eroded as a result of rising demand
from move-over buyers. And many (43 per cent) share the same
anxiety about rising prices, feeling that they could potentially be
priced out of their community, if the trend persists.
According to the Leger survey, during the pandemic, nearly a
quarter (23 per cent) of Canadians moved from a larger market to a
smaller one, and they're largely happy about the move (85 per
cent); while half of Canadians that moved to a small town believe
their mental health has improved after moving to a smaller
community (52 per cent).
"We've seen a greater influx of buyers moving to smaller markets
over the past two years, a trend that's prompted some concern among
existing residents. However, the diversity of new homebuyers can be
a positive thing for local communities," says Elton Ash, Executive Vice President, RE/MAX
Canada. "The recent notable growth
of Canada's small markets makes it
an opportune time for municipal and provincial governments to focus
on alleviating these concerns through measures that address
affordability and housing supply, but also aim to revitalize and
improve community liveability that has made these regions the
preferred choice of many Canadians."
This keen interest in small towns doesn't seem to be waning, as
gathering and workplace pandemic restrictions continue to ease
across the country, and more Canadians return to their office
settings on a full-time or hybrid basis. According to the Leger
survey, Canadians' ability to work from home has motivated them to
move to a smaller community (14 per cent); with 11 per cent
indicating that should their employer required them to return to
work in-person, they would look for another job so they could
remain in their small city/town/community.
A regional deep dive into Canadian small markets
RE/MAX Canada brokers and
agents were asked to provide an analysis on their local market
activity for the first quarter in 2022, as well as an outlook for
the remainder of the year.
Atlantic
Canada
RE/MAX Canada
surveyed brokers in Moncton, NB,
Charlottetown, PEI, Summerside, PEI, Truro, NS and Halifax, NS and found that they are all
sitting is seller's territory due to low inventory and insatiable
buyer demand, which is expected to continue through the remainder
of 2022. These regions are anticipating average sale price
increases of 5.5 per cent in Summerside; 12 per cent in Charlottetown; 15 per cent in Moncton; 19 per cent in Halifax; and 20 per cent in Truro.
Across Atlantic Canada,
out-of-province buyers are driving sales activity due to relative
affordability compared to large city centres in other provinces,
with buyers most interested in detached homes that offer more
living space and, in some cases, water-front properties. Between
January and March of 2022, year-over-year average residential sale
prices have increased 38 per cent in Moncton (two per cent population growth); 26
per cent in Halifax (2.1 per cent
population growth); 22 per cent in Charlottetown, and 20 per cent in Summerside (two per cent population
growth).
RE/MAX brokers and agents in Atlantic
Canada anticipate their markets to continue to be sought
after by out-of-province buyers, and in some cases new immigrants,
as the pandemic has shifted what people want in a home.
Specifically, there is a newfound appreciation for smaller
communities across Atlantic
Canada.
Ontari
All of the small markets surveyed in
Ontario are seller's markets with
low inventory and high demand. Average residential sale price
estimates according to RE/MAX brokers and agents, include
Stratford (eight per cent); Centre
Wellington (two per cent); Grand
Bend (7.5 per cent); Woodstock (eight per cent); Southern Georgian
Bay Area (nine per cent); Oshawa
(15 per cent); Arnprior (15 per
cent); and Carleton Place (15 per
cent).
Throughout the pandemic, local RE/MAX brokers have reported an
influx of out-of-town buyers seeking affordable housing, larger
living spaces and a close-knit community feel. Many of these
regions, including Oshawa,
Carleton Place, and Arnprior, already have the infrastructure and
public transportation in place, offering residents an easy commute
to work in the city.
The cities of Oshawa (2.3 per
cent population growth), Arnprior
(2.3 per cent population growth) and Carleton Place (3.8 per cent population
growth) in Ontario are each
anticipated to see average sale prices increase by 15 per cent
through the remainder of 2022, according to RE/MAX brokers and
agents. Carleton Place was
recently named the fastest-growing community in Canada, which is also impacting its housing
market. It currently has multiple new developments in the works,
which will bring in more than 1,600 new homes to the area.
Western Canada
Much
like the rest of the country, Western
Canada's small markets continue to favour sellers, including
Kelowna, BC (2.6 per cent
population growth), Chilliwack, BC
(2.3 per cent population growth), Cranbrook, BC, Brooks, AB, Red
Deer, AB; and Brandon, MB.
Many of these regions are welcoming buyers from other regions and
provinces (primarily Ontario),
with interest in single-detached homes that offer more indoor and
outdoor living space. Over the past few months, these regions have
seen stronger buyer confidence and less urgency to purchase a home.
This has resulted in fewer bidding wars and is signaling that the
market is beginning to settle; however, it is too early to predict
indefinitely.
Territories
This report also analyzed the region of
Whitehorse in the Yukon (2.4 per cent population growth), which
is currently a seller's market that is anticipated to continue for
the remainder of 2022. In this region, condos and townhomes are
seeing the most activity, both in terms of sales and new
construction. However, supply cannot keep up with the demand, and
is driving prices up. Whitehorse
has been a hotspot for new immigrants in particular, with municipal
programs in place to help them integrate into the community. The
region is also seeing out-of-province buyers who are falling in
love with the lifestyle of the North.
About RE/MAX Canada's 2022
Small Market Report:
The 2022 RE/MAX Small Markets Report
includes data and insights supplied by RE/MAX brokerages. RE/MAX
brokers and agents were surveyed on market activity and local
developments based on local board data and market activity in 2021
and 2022. *Liveability as defined by the Leger survey respondents,
was based on individual subjectiveness for what liveability meant
to them. Liveability as defined by RE/MAX is the quality of life
that make up your neighbourhood, such as green spaces,
transportation, etc. to name a few. **Small markets were defined as
those having the highest population growth rates in 2021, according
to Statistics Canada, and population under 440,000, with a
secondary criterion in order to ensure a good sample of national
markets of those with a population of 100,000 or less.
About Leger
Leger is the largest Canadian-owned
full-service market research firm. An online survey of 1,525
Canadians was completed between March
25-27 using Leger's online panel. Leger's online panel has
approximately 400,000 members nationally and has a retention rate
of 90 per cent. A probability sample of the same size would yield a
margin of error of +/- 2.5 per cent, 19 times out of 20.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC
is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than
140,000 agents in almost 9,000 offices with a presence in more than
110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX
Ontario-Atlantic Canada, Inc., and RE/MAX Promotions,
Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the
world sells more real estate than RE/MAX, as measured by
residential transaction sides. RE/MAX was founded in 1973 by
Dave and Gail Liniger, with an
innovative, entrepreneurial culture affording its agents and
franchisees the flexibility to operate their businesses with great
independence. RE/MAX agents have lived, worked and served in their
local communities for decades, raising millions of dollars every
year for Children's Miracle Network Hospitals® and other charities.
To learn more about RE/MAX, to search home listings or find an
agent in your community, please visit remax.ca. For the latest news
from RE/MAX Canada, please visit
blog.remax.ca.
Forward looking statements
This report includes
"forward-looking statements" within the meaning of the "safe
harbour" provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of words such as "believe," "intend,"
"expect," "estimate," "plan," "outlook," "project," and other
similar words and expressions that predict or indicate future
events or trends that are not statements of historical matters.
These forward-looking statements include statements regarding
housing market conditions and the Company's results of operations,
performance and growth. Forward-looking statements should not be
read as guarantees of future performance or results.
Forward-looking statements are based on information available at
the time those statements are made and/or management's good faith
belief as of that time with respect to future events and are
subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. These risks and
uncertainties include (1) the global COVID-19 pandemic, which has
impacted the Company and continues to pose significant and
widespread risks to the Company's business, the Company's ability
to successfully close the anticipated reacquisition and to
integrate the reacquired regions into its business, (3) changes in
the real estate market or interest rates and availability of
financing, (4) changes in business and economic activity in
general, (5) the Company's ability to attract and retain quality
franchisees, (6) the Company's franchisees' ability to recruit and
retain real estate agents and mortgage loan originators, (7)
changes in laws and regulations, (8) the Company's ability to
enhance, market, and protect the RE/MAX and Motto Mortgage brands,
(9) the Company's ability to implement its technology initiatives,
and (10) fluctuations in foreign currency exchange rates, and those
risks and uncertainties described in the sections entitled "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q filed with
the Securities and Exchange Commission ("SEC") and similar
disclosures in subsequent periodic and current reports filed with
the SEC, which are available on the investor relations page of the
Company's website at www.remax.com and on the SEC website at
www.sec.gov. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on
which they are made. Except as required by law, the Company does
not intend, and undertakes no duty, to update this information to
reflect future events or circumstances.
SOURCE RE/MAX Canada