Well the numbers are out for January and it is definitely no surprised. Yesterday I typed a rather long email but unfortunately it froze before I saved it and I could not retrieve it. Despite countless attempts so this is my second attempt at this and will probably be shorter. :)
Yesterday I attended the Market Outlook for 2021 and here was the walk away:
Covid 19 has actually pushed 32% of people to buy a home sooner rather than later
Detached homes are still the most appealing - people are actually shying away from mutual walls and sharing walls with other people. Towns and Urban Towns and Condos. Although these are more affordable , people prefer detached.
People are buying resale over new and I think part of it is many builders are selling condos and urban towns as opposed to single family detached homes because they can make more money cramming 10 homes on a lot instead of 3. We are also seeing a big drop in Condo sales in TO as people move away and are no longer working from home.
905 numbers are on fire. As you can from this chart below:
With noise of a Vacant Home Tax, 37% of investors are contemplating selling their investment properties due to the high prices. This is up considerably from last year.
Renters now have more choice and better negotiating power in the condo market as it is taking a hit with the short term rental market being non existent right now and also the exodus from TO condos to the 905 area. Record low interest rates are helping those contemplating home ownership to jump in and many are putting 20% down.
The reason I don't see any government intervention right now is simple. The housing market is helping with the economic recovery right now as many businesses are suffering and yet the real estate market is thriving and thus rolling into renovations, moving, furniture, appliances, land transfer tax and household purchases. They don't want to slow it down.
Governor Macklem reiterates the Bank of Canada's expectation that the overnight rate will remain at .025% until 2023 as the economy recuperates.
That being said let's get to the numbers. Here are the numbers for January 2021 - for Durham Region
So as you can see the prices are astounding and it appears people are driving until they qualify. Thus showing the massive growth in CLARINGTON. Clarington has now become the new Brooklin. It is a destination of choice for many. As you can Oshawa has gained much ground over the past few months as well. Pickering, Ajax and Whitby are now over $1M for a detached home on average.
Likelihood of Change?
- Very small in the next 6 to 9 months
- Stress Tests set by Ministry of Finance and OFSI - had announced a test reduction which has been postponed.
This housing market has been made by "true demand" and not speculation. People need homes to live in and are trying to take advantage of the record low interest rates.
As the vaccine rolls out and we see an increase in resilence, so will the desire to move back to the City (TO)
Toronto Condo Market rebound is imminent. Except prices to raise in 2 to 3 months.
Price increases in the Golden Horseshoe will be moderate throughout the year.
Anticipate a sharp return of travel and tourism, restaurants and bars - should normalize by year end of 2021
Immigration will predominantly impact urban areas.
Continued Low Interest Rates will heighten activity
Mortgage Qualifications will become VERY STRINGENT through the remained of the year and into 2022. Purchasers will have more hoops to jump through to qualify.
Year of Year - Prices are up 15.5% on average with Sales up 52.4% from January 2020. That's were we are at. 905 has dominated sales ... with more and more people working from home the need to work and commute downtown is gone and people are moving further and further out . This too many change once Covid is under control and employers start wanting employees to come back to the office more but for now, it is all about driving until you qualify ....
I have a copy of the Full Report for those that are interested. Just shoot me a message and I will forward it to you.
Have a great Family Day weekend/Valentines Day and stay safe ! Don't forget to check out the SOLD prices in your area on the site ! We now have SOLDS at the tab on the right hand side !!
Cheers to lifting some restrictions and let's all get our lives back !
If you or anyone you know is thinking of moving, please pass along my info as I am always here to answer questions or assist and thanks for visiting my site and sending messages. Always nice to hear from everyone. Stay tuned for a few more listings coming out this week !!