The year end numbers are in and 2020 will go down as I had noted previously, as the third best year ever for sales volume and house prices through the GTA. 

The higher demand for low rise housing (detached, semi-detached, attached/townhome) widened the price gap between high rise (condos apartments) and this was especially felt in the City of Toronto. 

Sales even shot up in the suburbs as people scrambled for houses they thought they could afford, and often faced stricter competition in competing bids than many Toronto buyers were facing. 32 offers on a house in Oshawa. 47 offers on a house in Guelph. There are countless similar stories I’ve heard that would leave even the most pro leaning real estate people with questions. How long can this go on?

Pre covid we actually had the exact same problem, and for those of you who read my newsletters frequently, you could probably point back for years on what that issue is. 

SUPPLY.

We simply have way more demand than supply for certain types of housing and have had this problem for at least the past decade. So this fire has been burning for a very long time. Then a worldwide pandemic comes along and governments do their best to stabilize their economies by adding fuel to the fire with stimulus and super low interest rates. Ask anyone who has either renewed a rate or recently purchased what they are paying and you’ll start to see how sale prices are are selling for $250k-$300k above the list price, including in some parts of the 905!

Actually this past week a townhome in Mississauga sold for $177k over list price and had 70 offers on it! Four months ago you could have bought two exact same style houses for $141k-$186k less!

We have a massive supply problem still, and the demand has only increased through these pandemic level interest rates. And it’s just not here in Canada. The U.S. has seen an increase in sales and prices and are expecting 2021 to increase again. And they are the brinks of a potential civil war!

So, where are the opportunities in the market over the next year? Well for move-up buyers who are above the “hot spot” of buying activity in Toronto, which is to say if you are looking to buy in the neighbourhood of $1.8-$2.5 million, you currently could trade in your existing home for a tidy profit and move up into something either larger to suit your needs or in a better locale, all while capitalizing on these lower interest rates. One thing I’ve noticed but would need to speak more with people on the finance side is traditionally speaking, native Canadians are debt cautious. Meaning the thought of a seven-figure mortgage is scary to them. I also think well played out larger condos (2 Bedroom+) in the right locales will see a spike in a activity. I’ve been consulting with more “right sizing” clients of late whom location and lifestyle needs are more important than an aging house and a patch of grass out back. For you it could be something entirely different?

One thing for sure is eventually our current state of lockdowns will be behind us and our wonderful city, Toronto, will be back to blooming and booming. With regards to your real estate needs, maybe it’s best to heed the advice of an overused quote by Canada’s great one, Wayne Gretzky. ‘I skate to where the puck is going to be, not to where it has been’