FINALLY! Toronto’s lockdown starts to lift. What will this mean for the real estate market?
| I’ve lost the official count on how long we’ve been under some phase or colour code of lockdown, but I do know this; it’s been a very long time!What will the effect of the reopening have on real estate? Well, of course it’s too early to tell, but in the short term, it will be interesting to see how it plays out. After all, real estate was considered an essential service and people who needed or wanted to buy and sell, continued to do so. For those paying attention, or who have been trying to buy a home, many parts of the GTA in 2021 have been on a tear. Both sales volume and average prices are up, actually way up, and all of this has been happening under the restrictions of covid. Yes we may have picked up some orphaned buyers/sellers from 2020 who temporarily put their plans on hold, as well buyers and sellers looking to move forward their plans. Whatever the reason, the first five months have been astronomical on the activity side. But can it keep up? We are returning slowly to a place where people have a chance to get out and socialize with friends, visit someones cottage and maybe even backoff wanting to buy one of their own. They can travel once again , assuming they have had the double dose of the vaccine and not worry about having to quarantine upon their return. Many of the things we missed out on over the past 15 months may have some impact on sales activity. The supply of houses is still hit and miss depending on the pocket or neighbourhood you are hoping to call home. Overall, I’m seeing more and more listings which can give buyers a perceived advantage in where prices are going. This part is tricky and the pendulum hasn’t yet swung the other way, which would be needed for any noticeable price drop. But often perception can be difficult to overcome. Neighbourhood, type of house and condition still rule though. The Bank of Canada held their bank rate at the same, with expectations of it not rising until possibly mid 2022. The Canadian economy overall is their concern, not only the GTA real estate market. At times we can seem to be living in a bubble in that Toronto real estate has been strong for so long. Some people will be coming out of this lockdown in a much stronger financial position, and others not so much. How will this factor in? If you were thinking of buying, selling or investing, what would your plans be over the next few months? As for the rest of the market, we will have to wait and see. |