Until March 2020, Toronto real estate market was great! January saw the highest monthly price gain in two years (8.7% y-o-y), leading TRREB to declare that the hot GTA market would be a trend buyer and sellers should get used to seeing for the rest of the year.
February didn’t disappoint either, seeing its highest number of new home sales in nearly two decades and enjoying an overall rise in sales activity of 45% y-o-y. Then COVID-19 hit Canada, predictions about the housing market began to fly... Rent prices dropped 20% in 2020 Toronto reached a vacancy rate of 1.8%, the highest since 2015. The ‘tiny’ condo market has taken a huge hit, immigration all but stopped. Toronto real estate has recently become a tale of two cities — the condo market and everything else. Toronto's once-soaring condo market is the sector that has seen a decrease in sales and prices. Experts point to several reasons for this decline: everything from a pause on immigration to post-secondary students staying home rather than moving into the city and a condo rental.
Demand for Detached Homes Remained Fierce Across the GTA with York Region Seeing the Strongest Annual Sales Growth. James Laird, the co-founder of Ratehub.ca, expects detached home prices will increase between 4 to 7% in 2021, with the strongest growth in the suburbs around major urban centres.
Looking ahead, only time will tell how the housing market will truly perform. With the market trends, private mortgage lenders can expect a strong and productive private mortgage business activity for 2021.
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