While 2020 year was a challenging year for us all, the Toronto housing market in general turned out to be fine.
Despite the impact of the pandemic, homeownership rates rose to 67.4%, up 3% from 2019.
All of the fundamentals are in place for a continued strong housing market this year.
- In general, a moderation for the next couple of months, followed by strong price growth and sales from March to August.
- Home prices will continue to rise. The law of supply and demand will drive prices higher, on average, 5% to 6% increase. In some hot pockets of the GTA, prices should increase up to 10% by August.
Again, this is all based on the current demand and the spring economic recovery, Canada’s 3rd quarter GDP growth of 40% and a Democrat government in the US promises to renew free trade which should be a further positive for Canada and for the Ontario/GTA exports. Furthermore,
- Affordability will remain mostly positive. Low mortgage rates will offset rising prices, increasing the number of people who can afford to buy a home.
- Inventory challenges will continue. There’s still a gap between the demand and supply for new and existing homes and that will continue well into this year.
- Working from home will influence the housing market. People will continue to work from home, affecting where they’re shopping for homes and what they’re looking for in those properties. Homes in surrounding the Toronto core will be in more demand.
- Second homes or vacation home markets will stay hot. Homes around the surrounding lakes and cottages will be in high demand.
The condo market took a bit of dive in the 4th quarter of 2020 especially in the downtown core. Immigration being on hold, universities going online and people working more from home all had an impact on the downtown condo market.
Condos are that much cheaper and people are starting buying them again. Their prices will rise again.
The Toronto Real Estate Regional Board is reporting the condo sales and prices are on the rise. While some people are leaving the downtown core, there’s plenty of demand to buy those properties. The average 416 condo price will also rise by about 5% in the first quarter of 2021.
Whether you’re looking to buy or sell real estate in the GTA, we can help, please contact us. Looking forward to earning your business too.