For: Susana donan
Many people have decided to leave the big cities, including Toronto, and look for properties in the suburban areas. All this in an effort to get as far away from the pandemic’s hot spots as possible.
Despite this ongoing exodus from Canada’s inner-city markets, Toronto’s home sales growth this year will be supported by Canada’s continued economic recovery, improved employment and record low borrowing costs.
In its latest projections, the Toronto Regional Real Estate Board noted that while the COVID-19 pandemic had an unprecedented impact across the country, it “has not slowed down overall demand” for homes in the tightest housing market in the world. country.
Just over 95 thousand homes were purchased through the Toronto’s Real Estate Board (TRREB) MLS system during 2020, which represents an annual increase of 8.4% despite the current situation the world is going through, but specifically , Canada.
The MLS Home Price Index is an advanced and accurate tool used to measure the levels and trends of home prices in a neighborhood and is calculated using a sophisticated statistical model that takes into account quantitative characteristics (for example , the number of rooms) and qualitative (for example, if you have a finished basement) of a home and is based on the value that home buyers assign to various attributes of the home, which tend to evolve gradually over time.
During the same time period, new listings were up just 2.6%, a scenario that increased the median sales price by 13.5% to nearly $ 930,000 per home.
Jason Mercer, TRREB’s chief market analyst, explained that he expects things to get even better with the widespread use of vaccinations in the GTA and across the country that will lead to a stronger economy, population growth in urban areas and hence the increase in demand.
Building on the strong momentum established towards the end of 2020, the report predicts that the real estate sector will remain strong this year.
Likewise, total home sales are expected to range between 100,000 and 110,000 and that the global average sale price of all residential asset classes in the region will exceed one million dollars for the first time. What do you think?
The TRREB report also highlights the glaring exception to the market tightening trend, given that over the course of 2020 growth in new condo apartment listings far outpaced sales growth and, as of the fall of By 2020, more than two-thirds of investor-owners were considering listing their apartments for sale.
However, people in Toronto have had easy access to loans this year, spurring further market growth, and according to TREEB (Toronto Real Estate Board) this will continue through 2021 to support continued economic recovery. Therefore, the mortgage rates negotiated will also remain low throughout 2021.
The ongoing roll-out of COVID-19 vaccinations will also contribute to long-term market strength, especially once borders are finally reopened.
“The GTA will continue to be the largest metropolitan beneficiary of immigration in Canada, as the important immigration goals of the federal government come into force. Population growth will also be especially important for the condo market, ”reads the TRREB report.