The Year Is Yours, What Will You Do With It?
The New Year has begun and with vengeance. 2021 brings us the start of a second lockdown. For some of us, that means working from our homes or perhaps not being able to work at all. Families and dedicated teachers are supporting kids as they participate in online learning. We are still all in a state of uncertainty with so much happening in the world; Covid-19 is mutating now to a new strain, the initial worldwide vaccine initiative is underway, and to the south of us we have the US political scene that is creating a great deal of drama on a worldwide stage. On Canadian soil, we have had 10,000+ restaurants close their doors in 2020, with unemployment rates on the rise and in Toronto our biggest city, we have so many vacant condos as their previous occupants have fled the city for many reasons which have caused prices and rent in the downtown condo market to slightly decrease.
However, there is optimism surrounding the rebound of the downtown condo real estate market as it always has in the past, and history shows to repeat itself. Toronto is a highly renowned international city and people will flock back to the core once this is all wrapped up. While Toronto’s condo market may be taking a slight hit, everything else around the province continues to rise. Prices continue to climb, new construction is still happening at a rapid pace in the GTA, to the Westside, the Eastside and to the North, heck pretty much every market in Ontario is a seller’s market with houses selling on average in about a week, inventory is low everywhere and many buyers are currently on the hunt. Last year Canada welcomed a new generation of first-time homeowners and investors who were encouraged even in times of uncertainty to buy with lower financing costs. These low rates are expected to continue for some time which will increase the demand for real estate. The second half of 2021 is predicted to bring a surge of international students who will flood the rental market as well as newly arrived immigrants. Due to these two factors, demand for centrally located units should increase. Urban living remains attractive for many and with condos’ affordability advantage over detached homes, this will allow demand to pick up even more and even this past week has started to show a positive turn.
There is no doubt that 2020 was a defining year for everyone and everything but especially the collective relationship we all have with our homes. Shutdowns due to the pandemic left many of us scrambling to create home offices, homeschooling spaces, and gyms, changing the way we use our homes significantly. There was a clear shift towards larger properties and single-family dwellings, as families repurposed homes to become their office, school classroom, gymnasium and restaurant during the pandemic. In fact, many suburban markets across the country have been heavily impacted by out-of-town buyers, a segment that is expected to drive market activity in 2021.
If you’re realizing that you need or want a little more space or maybe thinking of relocating as you no longer have to commute to work as often or if at all, we’re here to discuss with you your options and help you think about and break down the pros and the cons to whatever it is you’re contemplating.