Let’s talk top teal estate trends of 2020, there is an unprecedented investment opportunity right now. When I think of one word to describe 2020, it would be change. Change in how we do business and in the businesses we need. Change in our surroundings and in those that surround us. Change in what makes us comfortable and avoiding things that make us uncomfortable. Change, overall. As a result, we have seen changes in our real estate trends of 2020.
COVID-19 has shaken our snow globe and sent everything we hold constant sprinkled around us. The unpredictability of the world has mimicked the unpredictability of our Canadian winters. Few things have stayed the same. Many people have felt isolated and alone more than ever. While others have felt cramped by their city lifestyles. Avoiding any and all large gatherings. While the change in our personal lives has been rampant, so has the effects on the real estate market.
At the beginning of COVID-19, the market in the GTA froze. People were nervous and while the home prices held steady, nobody could predict what was coming our way. People took a wait and see approach for a few weeks. In hindsight, this was a perfect buying opportunity in a market that quickly shifted from a buyer’s market to a seller’s market. At least in areas outside the GTA. Keep reading below for more real estate trends in 2020.
The great Escape from the City Core
With #WFH being the new “norm”, people have less reason to be in city cores. As a result, we have seen an influx of condos on the market. Investors have had to weigh the decision to hold and wait or sell and cash out. As the rental market continues to soften, many investors have chosen the latter. Creating an opportunity for condo buyers.
In my dealings with investors and tenants, I have seen many renters decide to give up their downtown core condos for cheaper condos or homes outside of the city core. Their number one need is no longer being close to the office. Rather high-speed internet, and a desk to complete their work. They are finding cheaper solutions in the suburbs or even in cottage county. To give you a data perspective, the Toronto real estate board reported an 84% increase in listings in Q3 2020 from Q3 in 2019. That means we have 84% more listings than we did in 2019. Therefore, the Buyers in Toronto’s condo market finally have an opportunity to shop for a condo with an increased supply and motivated sellers. Making this the first and most notable real estate trend in 2020.
Multifamily Homes
One of the greatest burdens we saw on working families was childcare. With childcare solutions being taken away or with families being encouraged to avoid seeing their extended family, parents are left to multitask. We have seen humorous examples of this on the news when people are interrupted by their children during interviews, and while it has created a necessary shift in the cross over of family and workplace, it has created heavy burdens for families. As a result, I have seen a greater interest in homes that have in-law suites. Or homes that have the ability to house more than one family. I think the lockdown was sobering for many people and really made us realize our need for family outweighs our need for space.
Pools and Outdoor Living Space
In the past, homes with pools would appeal to a smaller category of people. I have always been pro pool. But some buyers saw pools as an unnecessary maintenance item. With the closure of many recreational centers and the desire to keep our distance from strangers, homes with pools have become hotly desired. Every home I helped buyers make an offer on became a game of “who could pay more.” In addition to pools, larger yards and green-space has been the goal of many home buyers. Some city dwellers are even choosing to forego their homes and live on hobby farms in the country. This is a time in real estate where the impossible is seemingly possible.
Blowing the “Budget”
The first step in beginning to look for a home is to get a mortgage pre-approval. This will help navigate your home buying journey. I have seen many people who get an approval higher than what they are willing to take on. So they decide to purchase a home with more manageable monthly payments. I find the mentality of home buyers this year has been to purchase at the top of their budget or borrow money and shop for something over their budget. The record low interest rates have helped immensely. So this coupled with the need for more space has lead to buyers buying with a different mindset. Hoping that if this becomes their forever home, or a home they end up being quarantined, at least they love their surroundings. So blowing the budget has made it into the top real estate trends of 2020.
Drop in Condo Demand
As the lockdown became more and more real, and the need to distance from people became a reality. The idea of crowded elevators became overwhelming for many people living in condominiums. The lack of space or common areas due to closures was very difficult to cope with. People often chose to trade the lack of space for the convenience and excitement of living in the city center. But when the goal is to avoid others and everything you see as an extended amenity of your condo is closed. The appeal diminishes and we are left with an oversupply of vacant condos. Surely this trend will begin changing in the coming months as vaccines are distributed. But in the meantime, there is an unprecedented opportunity for buyers in the Toronto condo market that we will likely not see again for many years to come.
As 2020 comes to a close, we look forward to a brighter 2021. If you are ever in need of real estate advice or market updates, reach out to Natalie. Please make sure to shop local this year and support the businesses that are the heartbeat of our communities. For list of recommended businesses check out Small Businesses to Support This Christmas .
