Toronto Real Estate Monthly Market Report January 2021
“Why does February feel like one big Tuesday?”
― Todd Stocker
February does feel like one BIG Tuesday! January seems to fly by almost without notice after the excesses of December and New Years. When we finally recover, here we are in February. Winter is fully afoot and it’s grey and dreary. On the positive side it’s a short month, winter is half over, the days are getting longer and spring is around the corner. Cheers to that!
As for the Toronto Real Estate Market…
We realtors usually talk about the “spring market” as starting as early as February. Well, as with everything these days nothing is usual. Especially in the Toronto (and surrounding areas) Real Estate Market. The spring market, if one can call it that, has come early to the GTA. Buyers were out early in January snapping up anything with a roof over it, in competition with many offers to boot. And it’s continuing. It’s hard to call this a “market” as there is so little product to look at, but the demand is strong and with so few houses to buy, prices are going through the roof. Even in the condo market, prices have stabilized and are stronger in some areas and segments. Demand for homes outside of Toronto remains strong with competitive bidding on almost everything from rural properties to cottages.
The long and the short:
2021 is off to a very strong start with a true seller’s market for freehold (single-family) homes and in some segments a buyer’s market for Condos. Low interest rates remain one of the major driving forces of affordability. When borders open up we will see a surge in immigration and the consequential increase in demand for housing. As long as supply remains low, we will continue to experience the unprecedented.
Nobody predicted this kind of a market would exist at the start of 2021 when the world is still reeling from COVID-19. But the Toronto market has and continues to defy all the prognosticators. What are the fundamentals that drive a market? Supply and demand. Ok, so clearly we have demand and low inventory which is driving prices up. Where’s the money coming from? Low interest rates create an environment of affordability – as long as one has a large trunk of cash on hand for a down payment. Bank of Mom and Dad perhaps? Who knows? No matter what, people are buying. Cities will remain focal points of business and employment and are always the starting point for immigrants.
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