2020 and 2021 have been active years in the Toronto real estate market with plenty going on. You may think that Toronto real estate is in a rough spot because of the pandemic, but you’d be surprised.
The resale market is strong, the housing market is solid, and condo sales are picking up. Plus, the rental market for downtown condos and condominium lease transactions is up.
Here are five reasons we have confidence in Toronto’s 2021 real estate market (and why you should, too!):
With the rise of work-from-home jobs, more people can expand their living options. This migration allows for the expansion of the housing market and drives activity into new regions.
The Canadian Real Estate Association reports a 13.8% year-over-year growth in November 2020. “Move-up and Move-over” buyers are driving activity in the housing market into new regions, likely continuing the housing supply shortage – and increasing prices.
Growing demand, low supply, and rising prices are expected to impact the housing market in 2021. Toronto’s housing market saw an average price rise to $918,883 in 2020, compared to $819,832 in 2019. Toronto’s RE/MAX outlook is a 6% increase in average price to approximately $974,015.
According to the Toronto Board Regional Real Estate, the year-over-year growth in the Greater Toronto Area (GTA) significantly outpaced new listings, which led to tightened market conditions and a sharp increase in average selling price. However, Toronto’s average condo price has not yet reached the same levels as last year.
While average Toronto Condo downtown rents dipped over 16% in Q1-2021, market dynamics indicate that rental conditions will continue to strengthen as the year continues.
The Toronto area saw annual growth in lease activity in Q1 by a considerable margin of 78% to 46%, which indicates the urban rental market may be making a comeback.
Condominium lease transactions in the Toronto area reached a Q1 high of 11,928 units – up 70% from a year ago. Total condo rental listings fell 12% quarter-over-quarter, helping the ratio of quarterly condo leases-to-listings improve to a pandemic high of 61%, according to Urbanation’s Q1-2021 rental market results.
Despite the dire predictions at the start of the pandemic last year, Toronto’s real estate market has exceeded expectations. At the end of Q1 2021, the real estate market is solid (similar to 2017), and buyers and companies hold confidence in the market.
Given the recent performance results from Q1 2021 (not to mention the past year), plus our five additional reasons, how could we not feel confident in 2021 Toronto Area Real Estate?
Don’t hesitate – the Toronto Real Estate Market is only getting more robust, and we can help you with your real estate investments.
