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The GTA housing market in 2020 revolved around a slowed down economy and lifestyle changes that the COVID-19 pandemic brought with itself. We have seen market activity plummet to record lows and rise again at astonishing speed. Let’s take a look at where GTA and Toronto homebuyers and sellers are standing in early 2021.
Being unable to shop for a home during the spring lockdown, the backlogged homebuyers rushed to the market in the fall and winter after strict COVID-19 measures were lifted. The lower mortgage rates encouraged GTA homebuyers to shop for a home, which was especially the case with detached. Detached home sales increased by roughly 55% year-over-year in December, while the average house price climbed 17.7 %. With social distance rules in place, the pandemic has made homebuyers more conscious about the importance of having more in and outdoor space, as well as a home office, and combined with the low borrowing costs, the demand in the market grew quickly, outpacing supply. Looking at these conditions as a GTA Detached home seller, it is the perfect time to sell. GTA homebuyers are still looking (and competing) for spacious homes outside urban areas, and with the lower inventory currently, sellers are looking at a fast sale at top dollar. If you want to know more about selling your home right now, contact Mustafa Zia for more selling tips and tricks.
When it comes to the condo market, sales started to pick up rapidly in December, resulting in a 75.4% increase year-over-year, but the average price dropped by 4.7% due to the slowdown earlier in 2020, especially in the rental market (short-term and long-long term). With traveling restrictions, many short-term rentals were turned into long-term rentals or put up for sale. Demand for long-term rentals was also in decrease with many tenants moving to more affordable areas or back home, taking benefit of work/study from home. All of that also had investors withdraw for a while from the condo market, especially in downtown areas, like Downtown Toronto. However, the rising number of sales indicates that the GTA and Toronto condo buyers are getting back on the market, benefiting from the lower prices at the moment. It is a great time for condo buyers to take action and shop for a Downtown condo before prices go up again, and according to forecasts for 2021, they probably will. If you want to know more about available GTA condo listings, contact Mustafa Zia here.
The housing market has recovered very quickly in the last quarter of 2020, with detached houses in the main role. And while downtown condos may have dropped in prices and currently favour buyers, the increased demand with vaccines around the corner are probably going to encourage price growth as well. For more info on market trends, predictions and listings, make sure to reach out here.