We are excited to be heading into a new year. There are many reasons to believe that the Toronto Real Estate market will continue to grow into 2021. However, as we have all learned this year, you make predictions at your own peril. At the risk of being wrong, here are our predictions for the Real Estate market in 2021.
Rates will remain low: The overnight rate will likely not increase this year, which means that mortgage rates are going to continue to sit at all-time lows. This is an intentional effort to keep the housing market afloat and it is working.
Space will continue to be prioritized over workplace proximity: This year has shown how flexible companies can be with their workforce. While some offices will go back to requiring their employees to the offices, we expect that most employees will demand a more flexible approach to the 9-5. Therefore buyers will continue to prioritize square footage and outdoor space over a downtown location. This is especially true because house prices will continue to go up, forcing more buyers out of the core.
Rental prices will go up: While offices will continue to be run remotely, it is highly unlikely that Universities and Colleges will continue the majority of their classes virtually once the COVID vaccine is here. With that, and as long as normal travel resumes, there will again be a demand for rental units in the downtown core.
Housing Inequality will get worse: We can’t talk about the good without talking about the bad. We know that an expensive real estate market literally leaves people in the cold. This year we have seen that inequality worsen because the hardest hit population were the people who were already living on the edge of financial security. While the government continues to help the market with low-interest rates, we must also make sure we work on housing plans within this city so that everyone has access to the basic human right of shelter.
As always, stay safe and stay healthy. Here’s to a brand new year.
The Kim Kehoe Team