Crosstown condos and townhomes . Hope that property prices will plummet? The COVID-19 epidemic did not hit some of the country’s hottest real estate markets, as some predicted, but in cities such as Toronto and Vancouver.
The rush of buyers for detached houses has caused property prices to break records for several months in a row. Property experts say that buyers who have been sitting on the sidelines hoping that property prices will plummet may not get what they want in 2021.
CTVNews.ca recently interviewed several real estate agents and experts in Vancouver, Toronto and other places to learn about their forecasts for the direction of the market. Although each expert has a slightly different view of the market outlook for 2021, they all agree that as more and more citizens seek suitable home offices and backyard space to make life more comfortable under the epidemic, the price of mid-range detached houses will only rise, and the bidding war is bound to heat up. However, the Bowen market will be a different story. All experts agree that the price of a small one-bedroom in the city center has been hit in 2020 and is not expected to rebound quickly in early 2021.
The Toronto real estate market shows no sign of slowing down. Lauren Haw, chief executive of Zoocasa, a real estate agency, said that working from home gave many people the idea of changing homes. They wanted more space and wanted to move out of the city. This trend has led to a “town renaissance”, with towns across southern Ontario vying fiercely for detached houses. She believes that this phenomenon will continue to occur in the new year. If the economy recovers from the epidemic and interest rates remain low, that is likely to translate into upward pressure on house prices.
Last October, the UBS Global Real Estate Bubble Index (UBS Global Real Estate Bubble Index) ranked Toronto as the third city with the highest risk of a property bubble. But Mr Hollauren does not expect the bubble to burst in 2021 and there will be no correction in property prices because there is no factor driving down property prices in Toronto.
But what does fall in prices is one-bedroom Bowen, especially in downtown buildings with a large number of renters and Airbnb, Mr. Hollauren expects. She believes that Bowen prices are not at the lowest level at present, and prices will continue to be hit in the first quarter of this year. But the vaccine may change that.