Toronto real estate has been a roller-coaster ride ever since the global pandemic arrived. The home sales and pricing situation in Toronto are unpredictable, with prices rising upwards and
CREA Anticipates Record Home Sales Through 2021
Dated: March 17 2021
The record numbers of home sales are expected to continue throughout 2021. The Canadian Real Estate Association suggests that numbers might trend back down for 2022. This updated CREA report stems from February statistics - showing a 6.6% increase from January 2021 and up 39.2% from 2020.
Even with an increase in home prices, the CREA expects almost 702,000 to move through Canadian MLS systems this year. Even with the aftershocks of a global pandemic, COVID-19 isn’t scaring off potential buyers. CREA chairperson Costa Poulopoulos states, "At this point, everyone knows how far the current monthly sales numbers are from historical norms, and that they have been setting record after record for eight months now, so this should not be a surprise."
Inside & Outside of the Cities
These substantial price jumps are also noticeable in smaller real estate markets - not just the more populated cities. CREA reports that the most significant year-over-year gains come from smaller regions of the Lakelands, Tillsonburg District, and Woodstock-Ingersoll.
COVID-19 and supply and demand are to blame, according to CREA Senior Economist Shaun Cathcart. From Cathcart in a press release, "We are right at the start of the first undisturbed [by policy or lockdown] spring housing market in years, and we also have the most extreme demand-supply imbalance ever by a large margin." With the need to have a place (and more space) to ride out the pandemic and wanting to purchase before prices climb any higher with record-low mortgage rates, CREA believes more supply will gradually return to the market, but it's going to take a little time to see that result.
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