Real Estate continues to be attractive in terms of investment
Covid-19 has taken Canada on a roller-coaster ride in 2020, sharp drops in economy but promising climbs took real estate market on the level of uncertainty. The interesting thing, is that it keeps being attractive to investors, and continue to change the usual market of real estate as was tend to be before the pandemic.
According to the new forecast report from the Canadian Real Estate Association (CREA). The national average home price is expected to rise by 16.5% to $665,329 in 2021.
Prices are not only what is going to go up. The number of homes sold will rise as well.
Smaller markets in Southwestern Ontario have been very hot. Windsor reported the area’s highest price gain in the third quarter; its aggregate home price shot up 17 % year-over-year. Oshawa wasn’t far behind with 15% a climb. Hamilton, Peel saw increases of 14% as well.
The Ontario market has followed a broad trend to come up on top, both rural and suburban areas. For condo market we see unexpectedly growing interest as well. Cancelation of Airbnb market brought restrictions for short term rentals, as the result a lot of investor-held condos were listed for sale or switched for long-term rentals.
Despite that, preconstruction sales across Toronto continue to grow. Because of the lowering immigration, the real estate market is still bringing uncertainty in planning long-term investments, however, living in the short commute to downtown Toronto will be the top 1 reason to look for new development preconstruction opportunities in 2021.
With record low mortgage rates, gradual economy recovery and vaccinations in place the prices on properties will get moderated but will keep the healthy level of activity throughout of 2021.