What 2021 Has in Store for the Toronto Real Estate Market
It was my honour to contribute and express my personal predictions for the Toronto Real Estate Market for coming 2021.
- Through 2020, Toronto’s resale market has been on fire… mostly. How do you think 2021 will impact this trend?
I think in the spring the prices will jump up again, just like we used to have in the past every year, maybe 10% on average. This perception stems from the way 2020’s resale market bounced back after the first COVID-19 lockdown, reaching new highs in the fall. Prices will continue to go up as “inventory is very low ” and will stay that way until spring.
- Toronto’s condo market has suffered through COVID-19. Will 2021 bring recovery to this section of the resale market?
The condo resale market is different from the housing market. The inventory is growing and the prices on average are flat, all depends on the condo building, some are up, some prices are down by 10%. This trend and more balanced condo market will stay during 2021 and may change towards the end of 2021, meaning we will see more buyers and more sales. Prices may go up again by on average 5% towards the end of 2021.
- What new housing trends do you expect to see land in Toronto through 2021? (For example, this year has seen increased awareness around missing middle and affordable housing options, while garden suites are also being considered.)
There will be a lot of multi-unit properties for sale, as Landlords especially near Universities are struggling to rent their rental units. We will see a trend of 2-3 families buying these properties together. Almost like a co-living space.
- In the wake of the pandemic, Toronto has shifted to a “renter’s market.” Will this trend last through 2021?
It will last until the end of summer, I think. With a new vaccine and immigration coming, renters will start coming back to the city, and the student will return to Universities. The renter’s market will recover.
- Do you expect the rental market to reach a (relatively) balanced place, or swing more dramatically in the favour of landlords and property owners through 2021?
The rental market will come back but not dramatically, it will become more of a balanced market towards the end of summer 2021.
- What lasting impacts do you foresee the pandemic leaving on Toronto’s rental market if any?
This year, 2020, a lot of young couples were moving out from 1 bedroom condos into 2 bedroom rental apartments in houses/multiplexes. There was a shortage of good quality rental homes/multiplexes. The reason, renters didn’t want to use elevators and needed more/separate rooms because they were working from home. This trend will continue. Renters will be looking for renovated (condo standards), bright 2 bedroom units with a backyard/outdoor space.
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