First, even under the best circumstances, in the midst of the hottest real estate markets, no one can make reliable predictions about what will happen in markets going forward. But this year, considering that no one could have predicted anything close to the efforts of COVID-19, it’s tougher than usual to make even an educated guess.
That said, there are a few realities of the current real estate markets in the York Region and the GTA that anyone with a Markham, Richmond Hill or Vaughan house for sale, or those looking to buy a home, should keep in mind.
3 Things for Home Buyers & Sellers to Consider in the New Year
Even though it is difficult to reliably predict what will happen in the New Year, the following realities are great to consider if you’re planning to buy or sell a home.
Interest Rates
The Bank of Canada (BoC), whose prime lending rate determines mortgage rates, has indicated that interest rates will remain at current levels for at least two years. In a statement released at the end of October, they said “the Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed…In our current projection, this does not happen until into 2023.”
With the BoC currently projecting low rates for the foreseeable future, it means both home buyers and sellers can enter the market with a measure of confidence that financing will remain stable.
Healthy Real Estate Markets
While no one could have predicted the COVID-related events of this year, even fewer could have predicted how real estate markets responded. In September, the average price of homes of all types increased in York Region by over 8.5%, to $1,066,380 from $975,082 in September 2019.
While that’s a healthy gain, the most remarkable thing about it is that it happened in the midst of the biggest economic downturn since the Great Depression.
While healthy prices have obvious advantages for home sellers, they are good for home buyers too. They can buy a home with more confidence that their investment will appreciate.
The Move to the Suburbs
This one is especially noteworthy for York Region. The prices of many one-bedroom condo apartments in downtown Toronto are similar to the price of many detached homes in the York Region.
With the emergence of work-from-home policies to combat the spread of COVID-19, and the need to get out of the crowded downtown core, York Region has become a very attractive option for many.
To find out more about the state of real estate, check out our article “Sales Down” “prices Up” – What it Means for Markham Real Estate”.