If last year taught us anything, it would be to expect the unexpected. A global pandemic halted life as we know it, and yet, the Toronto housing market didn’t just survive… it thrived!
2020 surprised us all with over 95,000 home sales, the third-best result on record, and with the average selling price reaching almost $930,000! Lisa Patel, the Toronto Regional Real Estate Board President explains that the 2020 housing market recovery from the initial COVID-19 shock is due to a strong rebound in many economic sectors, ultra-low borrowing costs and the enhanced use of technology for virtual open houses and showings. The housing market kept on keeping on while many other economies were struggling through the thick of the pandemic.
This year, 2021, is expected to be another strong year for the seller. The season is predicted to be characterized by growing demand, low supply and rising prices. Housing availability is expected to continue to decline, especially in February and March, which may push the average home price up. The condo market in Toronto is currently a buyer’s market, based on their affordability for first-time homebuyers. Buyers looking to ‘move-up’ or upgrade will also likely be a large driver of demand this season. Condo rentals are expected to see an increase, as the pandemic caused a boost in new rental listings and therefore a drop in rental prices, especially in the city centre.
With the work-from-home movement becoming so predominant, priority has switched from workplace proximity to a larger, more separated home. Dedicated office space and living spaces will become more sought after. Housing outside of the city core will also see an increase as people migrate further from their workplaces due to their ability to work remotely. Green space, larger square footage, and less density will be the buyer’s goal. Additionally, the remote workplace will encourage more people to move cities or locations with the aim of a change in environment. This will drive more traffic to the GTA in general, both to condos in the downtown core, homes surrounding the city, and in the suburbs.
The rolling out of the COVID-19 vaccines brings both a sense of comfort and the anticipation of normalcy. It is expected that with this, traditional real estate cycles will return, and spring will prove to be a busy and successful season. But until then, we can take advantage of technology and virtual showings, which proved to be successful last year! I’m here to help you find the home that best suits your needs, so let’s have a conversation! Send me an email at [email protected] and we’ll get started.