Writer and philosopher George Santayana said, “Those who cannot remember the past are condemned to repeat it." If you want to know why the market has been so active, (prices up 14.3% this year) and what is going to happen to Toronto real estate, let’s look at the recent past.
For the last several years Toronto has experienced a severe housing shortage as immigration into the GTA has occurred in unprecedented high numbers. Rental rates and home prices increased drastically as demand continued to outpace supply. Government red tape restrictions have not allowed the builders to keep pace with demand, and the advent of Airbnb took thousands of units out of the rental pool, exacerbating shortages.
That came to a head at the start of 2021 with prices starting to increase by 30%. As Covid 19 emerged, the market slowed as people took a wait and see attitude.
Within a short time we realised:
- We could remain safe with proper protocols.
- There were economic challenges for some business sectors, but for most it was business better than normal.
- Ultra-low mortgage rates brought more buyers into the market.
- Government spending helped the economy.
All in all, we felt “normal life” could continue during Covid and that meant that real estate continued its aggressive upward trajectory started at the start of 2020.
Factors present in 2021; Low mortgage rates. A strong economy. The end of Covid 19. Government increase immigration to Canada. Airbnb back and thousands of rental units removed from rental pool.
It’s obvious what will happen, you just have to look back and see!
This is the time to review your real estate portfolio, give me a call, let’s talk and plan for you and your family’s real estate future.
I am always available for a call to help you, your friends, or your family. Feel free to call.
Happy new year and have a great January.
Your Friend in Real Estate.Mark