More than 1,400 Canadians were surveyed for a new home building study by real estate firm Carenthia Homes and it showed that while many are looking to secure the most affordable home possible, the average cost is not yet in the black.
The survey was conducted between September and October by Carenhya Homes, a subsidiary of the Canada-based real estate company Carens, and the firm estimates that the average price of a home across Canada will be $2.15 million in 2020, an increase of just over half a cent, or $0.07 per cent, from 2017.
However, while the average home price is expected to rise by more than 1 per cent over the next five years, it will still be well below the median home price of $3.35 million.
The average home in Alberta is $1.9 million.
But the average is expected at least to fall to $1 million over the coming years.
“We are seeing a gradual and steady increase over the last year or two,” said Carentha Homes’ president and CEO, John Fauci.
“As the price of home ownership continues to increase, we are seeing that the cost per square foot is increasing, and that’s reflected in the increase in price per square metre,” he said.
“In Canada, we have seen the price per sq. foot fall dramatically in the last few years.”
Fauchi said the average house price is about $3,000 to $4,000, and a home that’s under construction will cost $1,500 to $2,000.
Fauces new home is the first in a family that includes his wife and their three children.
They’re looking for a home with a basement, a detached garage, and two bedrooms.
Fausi said the home is a little more affordable than many other homes in the area, but it’s not cheap.
He says they’re trying to stay below the $1-million mark for the home.
“It’s not as expensive as other houses,” he explained.
“But the cost for a house in Calgary is $2 million and that is a lot of money for a family of four to get up to,” he added.
The cost of construction was also lower than previous estimates, according to the survey.
It’s estimated that the median price of new homes in Canada will drop from $1 to $3 million over five years.
Fonci said that, while prices will likely continue to rise, many people will want to buy a home quickly.
“Many people want to get a new house in a short period of time,” he told CBC News.
“If they can’t do that, they’ll find a place and move on.”
The survey also shows that the number of new construction homes in Ontario is forecast to rise from 1,904 to 2,049 by 2040.
The median price for a single-family home is expected in the province to be $1–1.5 million, while new home prices are projected to reach $3–4 million by 2044.
The province is also expected to experience the fastest rate of population growth, at 6.6 per cent by 2034.
“This is a very good indicator of a lot more people are moving into the city, but we also have a high rate of new development in the city of Toronto,” Fauici said.
But while Faui believes there is still a lot to do to get people to buy homes quickly, he believes the real estate market is finally getting to the point where new home construction is starting to slow.
“There is a slow but steady process of people coming in, starting to build homes, and then slowly but surely, a slower and slower process of houses being built,” Fausic said.
The study shows that home prices have dropped over the past few years, but will be rising again.
However there are still some key factors that are needed to get new homes built.
“The first and foremost is the amount of capital required,” Foncini said.
He said there are fewer people in the market right now, and those people are willing to spend a little bit more money.
“They are willing and able to spend more, but they are not willing and capable of investing that much money in a new construction project,” he noted.
“I think that’s something that will improve over time.”
Foncialis point to the construction of the Eglinton Crosstown LRT as an example of how new construction could slow down.
The Crosstown Line will provide thousands of new jobs to the city.
But construction is currently slowing down.
“Construction is slowing down at a much faster rate than we would like it to,” Fomci said.
While there’s no clear timetable for the Crosstown project to be finished, Foncili said construction could be completed by 2023.
Fennici also believes the city