Toronto Housing Market in Spring 2021: A Seller's Market
- The Toronto housing market is favouring sellers this spring due to low inventory causing prices to rise.
- In 2020, the average price in the Toronto housing market increased to $918,883 from $819,832 in 2019.
- The average price of all property types increased by 12% in 2020 due to growing demand.
- This spring, Canadian economists are anticipating a 5% increase in average home prices in Toronto.
- As Toronto's housing inventory continues to decline, prices are expected to continue to rise.
- The luxury housing market in Toronto has not been impacted by COVID-19.
Who is Shifting the Demand?
- Buyer demand has been largely influenced by changes in lifestyle due to COVID-19.
- Working from home is drawing buyers towards purchasing larger homes farther from the city.
- Consequently, Toronto's condominium supply has seen an increase. Therefore, the condo market in Toronto is currently in favour of buyers.
- Economic factors like low interest rates are also helping buyers remain interested and active in the housing market.
- Working from home is allowing people to save on commuting, which is keeping the demand going.
- Remote work is now widely available and pushing buyers towards affordable homes away from the city and farther from their workplace.
- Homebuyers are looking for larger homes and more greenery.
- Immigration has been largely impacted by COVID-19, also leading to decreased demand in the condo market.
The Toronto Condo Market Bouncing Back.
- Since the beginning of 2021, there has been a growing interest in condominiums.
- The number of condos going up for sale is also slowing down.
- As the economy begins to recover and vaccine roll-out continues, the condo market will likely gain more and more interest.
- The large availability of condos is driving prices down, allowing buyers and renters to take advantage of these markdowns.
- If condo supply continues to decrease, we're likely to see prices rise later in 2021 and 2022.
- Now is the right time to buy or rent a condo in Toronto as prices are expected to climb.
The Rest of 2021.
- The housing market is expected to remain in favour of sellers for the remainder of 2021.
- Urban-to-suburban buyers are driving the housing market.
- The available supply of housing is likely to remain low, causing prices to continue to rise. Home prices, in particular, are expected to remain high.
- Due to the affordability of condos in Toronto, there will likely be lots of activity in the condo market. This is enticing first-time homebuyers to purchase condos in the city.
- Mortgage rates are expected to remain affordable. With the current low interest rates, purchasing houses is more attainable. These low interest rates are likely here to stay until the year ends.
- Immigration is likely to drive condo prices up next year as people will be moving to Toronto for education purposes.
- The price of housing is expected to rise by four to six percent this year.
