It’s going to be a strong year for Toronto real estate – hang on tight! All “expert” predictions for 2020 turned out to be incorrect. It may not be wise to predict for 2021, however based on what we’ve seen over the past year and early this new year, we are sharing a few trends we expect to see in 2021.

#1. Interest Rates will remain low
One of the most important factors contributing to rising housing prices. Rates are expected to be low this year as well.

Bank of Canada continues to keep its overnight rate low and has also reiterated its commitment to keep borrowing costs low as the economy needs time – and help – to recover. The Bank is not expected to raise rates until 2023 and when it does, it is expected to do so very slowly.

For its part, economic research organization CD Howe Institute recommends the target rate remain at 0.25 per cent until December 2021 at least.

#2. Record Immigration Targets
Canada’s success is a population growth story and the country has set aggressive targets for the next 3 years:

• 2021: 401,000 Permanent Residents
• 2022: 411,000 Permanent Residents
• 2023: 421,000 Permanent Residents

Previous Immigration Targets:

• 2021: 351,000 Permanent Residents
• 2022: 361,000 Permanent Residents

#3. Heightened Affordability Gap

• So far in January 2021, housing prices in the GTA  are up 33% (vs. last year) and the trend is expected to continue:
• Low rise prices are at a record high. The average price for a detached home in Toronto is currently $1,475,758 and $625,828 for a condo. Thats a difference of $849,930!!
• This is the largest the gap has been between low rise and condos
• As a result, condos become the ONLY option for many buyers

#4. Downtown real estate will strongly rebound in the second half of 2021
As the vaccines roll out, international students return to campus, borders open to allow record number of immigrants to come, downtown restaurants and offices open and downtown life in general resumes, we will see an increase in demand for downtown condos and probably larger condos or urban towns as low rise housing prices and the affordability gap continues to increase.

#5. 2021 will be a GIANT year for new pre-construction condo launches 
Builders are ready to launch some major projects this year. Just mid-way through January I have been invited to sell at 50 pre-construction projects already and more to come.

Here are 5 New Condo projects that we are super excited about – launching very soon this SPRING!