Buying a home in Canada in 2021
Buying a home in Toronto area.
To talk about the real estate market in GTA area, it will be more pertinent to go back to early bigining of 2020 and touch upon declaration of pandemic.
The first quarter has impact in both ways. In December 2019, real estate market was quite but it became very active with the start of new year. First quarter of 2020 saw real estate activities in full action. But with declaration pandemic, market nosed down in May 2020.
This was the time when everyone was scared and have no idea what was going around with the impact of virus. Open houses were banned. Eyes used to be glued on the figures and on China, Italy and US in the beginning. Because these were the countries which were impacted from world prospective.
There were restrictions placed by the governments, and most of us were confined to our homes only. Going outside the main door seemed to be like giving invitation to death. And that’s what we saw all over the places around us and in world.
This was the time technology came to full use. All the big companies took the lead and corporate houses were able to conduct meetings thru Microsoft Team meet, IBM or Zoom meet. Infect during this time share price of Zoom touched the sky high of $500’s.
This was the time, real estate open houses were possible thru online.
After June 2020, market just took off and never came down until Aug-Sep 2021. First eight months of 2021 saw a real estate which no one imagined and saw hectic price increase of home prices.
Almost every second home has been sold in multiple offer situation. This means there were more buyers in the market as compared to the available listings.
Since mortgage rates have been historically low, this was another factor and we saw surge in home prices. There more investors in the market who could take out equity from there homes and invest.
October month saw fewer listing in the market but still there has been completion among buyers.
Its November now and the average home price of a detached home is sitting above one million in GTA area. Semi and Townhomes are also hovering around touching million or even gone up.
There has been a shift among new young home buyers who have moved and bought two bedroom condo townhomes.
People have seen the urgency of owning a real estate as an asset. There are feeling the FOMO situation.
The earliest you buy, better will you be overall. This is what can be summarized that is what we have observed. If you delay mire, one not only looses the rent but also end up paying more in the coming month.