Mariya Ustymenko - Sales Representative, Team Zold
Jan 27, 2021 for Medium
If you live in Toronto, then you probably remember what happened in 2017 with the housing market, even if you didn’t follow real estate market that closely. People were coming into showings with deposit checks ready, with no “home inspection” clause in their offer, buying properties “as is” almost on the spot for well over the asking price. This is what real estate professionals call a strong “seller’s market” or, in the eyes of desperate and on-the-verge-of-being-priced-out-of-the-market buyers, just “madness”.
So why suddenly remember that bizarre year and what it has to do with our lockdown market today? Back in 2017 we had a lot of international investors’ who just poured cash into our housing market. So housing supply just couldn’t keep up with the demand.
Roots of todays craziness are different than the market of 2017. However, it is a good example (and I would say a light version) of what we can expect from 2021.
We are only few weeks into 2021 and the market is already on fire. Just to throw you some numbers here… 495 detached houses were sold in York Region in the first 26 days of the year! Just take a look at the chart below to see how the average sold price in York Region changed compared to properties sold in the first 26 days of January 2020 according to Toronto Real Estate Board data.
Sales in York Region for January 1 to 26 in 2020 vs January 1 to 26 in 2021 for freehold townhouses, semi-detached and detached houses, respectively.
Also, here are a few more numbers to leave you with some food for thought: 400 detached homes, 119 semi-detached homes, and 46 townhouses were sold in the 416 Region in the first 26 days of 2021.
With the lowest interest rates in history, high demand for properties and lack of product on the market, properties are being sold in few days with multiple offers.
But not all hope is lost.
There is actually good inventory of condominium apartments. Maybe owning a condominium apartment is not the same as owning a “dream house” with a golden retriever running around a backyard and having a front yard garden of the year, but it is a great way to get your foot in the real estate door to get a little closer to that “dream house” by building some equity.
This is also a great time for people who are looking to downsize and move into a smaller apartment from a bigger home. They have the advantage of selling in a seller’s market and gaining the benefit of increased prices, while then going out and having the ability to find inventory choices for smaller condo apartment type living.
Original article here.