A year to review. 2020 Real Estate Trends
Tags: 2020 Real Estate Review, Toronto Real Estate Review
The year has finally come to a close and we can finally say we made it through 2020!
hile our economy has taken a huge toll these last 12 months we are still seeing strong growth in the real estate market. While the predictions are estimating that the demand will continue throughout 2021 we do not know the full effects the virus will have on the demand for housing and what emerging trends will come in new build homes throughout the year.
2020 market trendsWe have seen a variety of changes in the real estate market in 2020. From an increased demand in Toronto's surrounding cities and country towns. To a boom in higher-end detached homes with more space for the whole. There is one thing that is for sure, Ontario is still in high demand in areas to live in Canada.
Trends going into 2021The market is going to continue to see a pent up demand for housing in 2021 in Toronto and the surrounding areas. With work from home lifestyles continuing for the foreseeable future the demand for housing with more space is a growing trend.
Condominium PricingCondos are going to see a wide variety of changes due to the current market. With people spending more and more time at home they are demanding more space for offices, and extra living space as well for hobbies and common areas.
TownhomesLike many of the homes on the market, townhouses saw a significant decrease in the demands in April. However, continuing from June all the way through December there was a significant increase in sales for townhomes surpassing 2019 and 2018 numbers every month.
This is partially due to two factors.The first factor was that many who owned short term rental townhomes in Toronto were looking to sell the homes due to travel restrictions. While at the same time there were many condo owners looking to buy a townhouse for the increased space and affordability while working from home throughout 2020.
Detach HomesWith an increase in transactions to 7,450 in 2020 from 6,666 in 2019, Detached homes have remained in high demand throughout the year. This is due to a variety of factors including the increased demand for more space as more families were forced to work and learn from home in 2020.
As we go into 2021 we can continue to see the same trend as more and more jobs become fully remote offering cost savings on vehicles and the ability to move farther out into the suburbs surrounding Toronto where there is a larger pool of affordable homes to choose from.
Mortgage ratesWe are seeing historically low mortgage rates which have been a large driving factor in the demand for housing in the market over the last year.
IS THIS A GOOD TIME TO BUY?While the rising prices have outpriced some of the buyers in the market we are still seeing continuing demand in the market going into 2021. While it is typical to see seasonality in the market
Cautious OptimismWhile we enter into 2021 we are continuing to see strong demand for housing in Toronto and the surrounding areas. However, we should still be cautious of the market conditions. While we can not say for certain when the rollout will start for the general public for the vaccines we do know the current estimates are aiming for early to mid-summer 2021.