No one predicted what would be happening to home values at the beginning of this Pandemic. A year ago, we weren't allowed to show homes to prospective buyers and all open houses were shut down. The summer was slow and then it hit....slowly at first during the late summer and fall of 2020, but then January 2021 came and took everyone by surprise. In most areas we saw a 34% gain in sale prices. Single family homes in the suburbs, especially East of the City saw the largest growth, while the condo market in Toronto saw about a 20% drop in prices.
Thankfully, I was able to find tenants for my own rental property in Toronto, but at 20% lower monthly rent than what the same size unit was getting 1 year before. Other units in the same building are still sitting vacant, but we are starting to see it coming back, be it slowly.
It has been reported that Oshawa is the fastest growing community in Canada! Yes, Canada. Buyers from all over the GTA are buying up the affordable housing in Durham.
Inventory of available homes remains extremely low. We have two types of buyers out there right now. The end user who is buying the home to live in and the investor who is gobbling up homes not too worried about the cost. They are seeing the 30% return on their investment.
The market can't continue to grow with the same rate as it did in January, but what will stop it? It has been made pretty clear that interest rates won't be going anywhere over the next few years. First time home buyers are already facing the hardest scrutiny before they buy we can not make it any harder for them to enter the market.
So what is left? Investors! There is talk of possibly changing the capital gain on investors or increasing their downpayment. We don't usually like government intervention, however, something needs to calm the waters.
Property Match Realty is growing and we are looking to increase our business. If you are thinking of a sale or you know of someone that is thinking of buying or selling, please let us know. I am also looking for Realtors to join our Brokerage. If you know of anyone interested, please give them my information.
Elizabeth Darbyshire Broker of Record