The COVID-19 Pandemic and Real Estate
It has been reported that prices aren’t expected to plummet in 2021. The COVID-19 pandemic didn’t deviate Canada’s hottest housing markets, the way some experts had predicted.
Cities such as Toronto and Vancouver saw some fierce composition for detached home. That meant that there were back-to-back months of record-breaking prices. CTV was speaking with some real estate agents and experts in Vancouver, Calgary and Toronto to learn more about what we can expect to see in 2021.
While most of them expect the 2021 market to look different, they are also expecting prices for mid-range detached homes to only go up as Canadians look for homes offices and for more space, in an effort to make life with COVID-19 more comfortable.
Ultra-Low Interest rates
It was also reported that there were ultra-low interest rates introduced in the early days of the pandemic. Those purchase are more attractive when you have these ultra-low interest rates and it’s also more attractive for first-time home buyers who haven’t seen their livelihoods effected by COVID-19.
“COVID has made people appreciate the space they live in — or on the flip side, not appreciate it. They’re taking a more critical eye to where they live.” Says Vancouver based agent Mark Wiens, in early December.
The State of Condos
There were bidding wars for houses that are poised to heat up in many parts of the country, but condos appear to be a different story. Experts have agreed that the small one-bedroom condos in downtown Toronto have seen a price hit in 2020.
They aren’t expected to improve in 2021 and this is bad news for condo owners who are interested in selling, however, it’s good news for buyers who are looking for a small space.
The Small Town Revival
“Everyone locked in their homes discovered they things they wanted to change. Some people wanted to change their homes, invest in a bigger kitchen. Some other people decided ‘I want a big change and I’m going to move out of the city.’” Says Lauren, CEO of Zoocasa.
People have been reported to be moving out of the downtown Toronto area and seeking out smaller towns and cities throughout southern Ontario. Which has caused a fierce competition for houses.
It was also reported that if the economy continues to revere from COVID-19 shutdowns and the interest rates can remain as low as they are, this could translate to an upward pressure on the housing market.
The Burlington Real Estate Statistics for December 2020
The Real Estate Association of Hamilton-Burlington reported a total of 913 sales of residential properties in December 2020. In Burlington there was a total of 172 sales, a 59 per cent increase when compared to the previous year.
New listings were reported to be down 47.87 per cent when compared to November 2020 and up 34 per cent over December last year. It’s important to note that the sale of residential properties saw an increase of 1.04 per cent to $729,853.
The average price of a residential home in Burlington was $961,908, a 23 per cent increase when compared to the same time last year.
“We can see that the market has slowed from November, which is normal due to the holiday season, as well as increasing COVID-19 cases throughout the province, and more regions in Ontario placed into lockdown throughout December. Despite being in either the Red Zone (Control) or Grey Zone (Lockdown) throughout December, we do not see the effects on the number of sales and new listings that we did in the spring lockdown. This activity could be the result of continued low interest rates, coupled with increasing consumer confidence due to the approval of the COVID-19 vaccine in Canada.” Says RAHB President Donna Bacher.
Contact Lori VanDinther and Team Today
Please feel free to contact Lori if you have any questions or concerns about COVID-19 protocols. Make sure you contact Lori VanDinther and her team today if you’re interested in buying or selling your home. If you’re interested in learning what your home is worth, try our free home evaluation.