As we settle into 2021, we wanted to take a moment to reflect on the past year and look ahead to what this year has in store for the real estate industry.
Revisiting The 2020 Housing Market
Traditionally Spring is the hottest market for real estate with many opting to get their homes on the market before the summer season starts. In stark contrast to previous years, the real estate market came to a grinding halt as uncertainty from the pandemic and national lockdowns took place.
As comfort grew with the pandemic and numbers retreated, the housing market reopened with a boom and hasn’t stopped climbing since. In a year-over-year comparison, housing prices in the GTA grew by 13.5%, with the average selling price coming in at $929,699.
What Do Housing Prices In 2021 Look Like?
Back at the start of the pandemic, experts were predicting that housing prices would fall between 9-18% due to individuals deferring their mortgage payments temporarily and then coming into arrears when the deferral period was up. However, this prediction never transpired and likely won’t according to the TRREB 2021 Market Outlook.
Carrying over into 2021 is the overall lack of supply in the market. So instead of the sharp decline in pricing, the industry is now looking at the average price for all home types combined eclipsing the $1,000,000 mark so if you’re looking to sell, now is a great time to consider putting your home on the market.
Mortgage Rate Predictions For 2021
With vaccinations underway and the whole country looking towards economic growth and recovery, many are wondering how interest rates will be impacted. The Bank of Canada has taken a reassuring positioning and informed Canadians that lower interest rates will likely remain until 2023.
What does this mean for mortgage rates? Borrowing costs for mortgages are predicted to stay at all-time lows for much of this year and even beyond.
If you’re looking to make a move in 2021 or have questions about what industry trends mean for your home, we’d be happy to help! Reach out today!