While many industries were hurt over the last 12 months of a worldwide pandemic, the Toronto housing market is still going strong – a trend which we expect will continue into the spring. With low inventory being an ongoing issue, it appears we are going to have a seller’s market well into 2021, as some economists are predicting housing prices to rise by about 6% to an average price of $974,015 across all types of property.
Virtual sales and the Toronto Real Estate Market
At the height of the pandemic, real estate sales naturally slowed as the industry had to shift from relying mainly on in-person interactions to doing things more digitally. While younger – often first-time homebuyers – were generally comfortable with digital interactions, many home sellers (usually older individuals) were less so.
As a result, many would-be sellers delayed putting their homes on the market. We expect that as transactions have become increasingly more digital over the last several months, that more home sellers will feel ready to take the plunge. Further, as the province begins to open up more, we will see more homes going up for sale. Nevertheless, with so many buyers looking to invest, this will not be enough to overcome the supply shortage in the housing market.
Forecast for the Toronto Condo Market
While most of the Toronto real estate market is favouring sellers, the one notable exception to this is the condo market, which is favouring buyers. As remote work is becoming an increasingly viable option for many employees, more people are moving out of downtown condos in favour of finding more square footage outside of the core.
As a result, we expect the most activity in the condo market from first-time homebuyers – in particular those coming to Toronto for education as well as from immigrant homebuyers settling in Toronto from abroad.
What the spring market forecast means for buyers:
If you are looking to invest in Toronto real estate this spring, there is every chance that you could find yourself in a bidding war. Inventory remains painfully low and finding a home in Toronto, or even in the neighbouring cities of Vaughan, Newmarket, Richmond Hill or Milton is incredibly difficult.
Buyers looking for more affordable and plentiful options will tend to have better luck in the condo market.
Regardless of the property type however, buyers will want to have a skilled real estate professional on their team who can act quickly to help them secure their investment before it is snatched away by another buyer.
What the spring market forecast means for sellers:
Sellers in the condo market will find the environment in the spring real estate market to be a challenging one. Other home sellers however are likely to get well over their asking prices – and working with a professional real estate agent will help ensure they get the best price they can.
Contact Adelson and Weiss today
Whether you are looking to buy or sell property in the Toronto area, it is critical that you have a real estate agent on your side who knows the area and understands the technology necessary to ensure a successful transaction during a time when meeting in person isn’t always possible.
For help with your real estate sale or purchase, contact Adelson and Weiss today!