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A very common question in the diverse world of Real Estate is what are the most common things you need knowing. These are in terms of key facts in 2021 before you purchase a home? Real estate in 2021 in Canada might not be the same as it has been in past especially Pre-Pandemic era. However, there are many other factors that as a common buyer you need to know. Especially, regards to home buying, in Canada, rather than selling strategies. According to most realtors, the season of winter is the sleepiest season for the Real estate markets.
According to a Toronto based Real Estate agent regards to buying homes. The housing markets were competitive before, but only in the first few weeks of January. A representative agent of Bosley Real Estate claims that he has witnessed bidding wars with up to 70 offers in the GTA. This is not exactly the slowdown that experts predicted at the start of this year. Neither at the start of COVID-19, not also the slowdown exactly that experts predicted could happen it is. Here is what the experts want you to know about the Canada’s Real Estate markets in the year 2021.
WHAT CAN HAPPEN IN CANADA’S REAL ESTATE MARKETS IN 2021?
This is despite the pandemic COVID-19 that took place last year, the real estate markets took off. A takeoff that happened when real estate was declared as a very essential service, as most population was working from their cosy homes and housing comforts was the key factor consistently on the rise. Hence, the desire and want of Canadians for more relaxation space will keep strengthening the real estate markets in 2021. A record high demand for homes and a relatively low supplies in cities that includes Toronto and Vancouver are the factors that are driving the prices up and up.
The question now rises, how up? As in the year 2020, if we calculate the average Canadian house price, stats say a 17% rise in prices year over year. According to the realtor’s predictions in 2021, the seller’s markets will continue forecasting increase in prices b/w 4% to 6%. The number of homes put on sale is another key factor that needs to be ascertained before buying a home.
VARIATIONS IN CANADA’S MORTGAGE RATES & TORONTO’S CONDO MARKETS:
If you are a homeowner already this could be the best time to break your mortgage. This breaking is for getting a lower interest rates before they start to climb up again. According to the Royal Bank of Canada, they expect that interest rates in 2021 will stay at a low. However, we may also see that the long term rates sharing will start to creep slightly higher. Even in this scenario, the housing markets of Canada have a tendency and capability that shuts many people out of the markets.
2020 was a tough year relatively for Canadian housing markets & mortgage rates, ironically due to the pandemic. The people who easily transferred to WFH setups were the people who could afford to buy a home in 2020. However, the most suffered sectors for e.g. Tourism industry are the most likely ones to be shut out. Hence, according to an urban planner & director of The City Program at the Simon Fraser Uni. A huge population in 2021 shall be facing the challenges in the housing sectors.
However, in Toronto’s condo markets which dipped 8.7% last October will slowly be coming back to Pre-COVID prices. This sincerely means. If you are thinking to buy one, you might have a deal. Especially, if you get lucky as there is still quite a bit of inventory on the market.