Looking Ahead with TRREB: The Upward-Edging Real Estate Market
A resilient and active residential real estate market is expected in the days and months ahead. In TRREB’s Market Year in Review & Outlook 2021 report and eagerly awaited digital digest, we looked at what’s driving the demand and supply in the GTA.
Our research on home buying and selling conducted by Ipsos shows that despite COVID-19, consumer confidence is high and the dream of owning a home remains strong. We also discovered more buyers are looking to purchase homes outside of Toronto’s core, and have expressed interest in buying detached, semis or townhomes in these suburban areas.
Buyers are accounting for a greater share of available listings compared to last year, and this is expected to continue. GTA home sales are expected to jump over the 100,000 mark this year with the listings trend remaining flat. Increased competition between buyers in many parts of our region will push the average selling price beyond the $1 million price-point for the first time.
Demand is based on strong consumer confidence due to a solid recovery in many sectors of the GTA economy, especially those associated with above-average earnings. On top of this, record low borrowing costs have improved affordability for home buyers. Looking forward, economic recovery is expected to continue in 2021 alongside the continuation of very low mortgage rates.
With the rollout of the vaccine underway, we should also consider what a post-COVID-19 world will look like and how it’ll impact the marketplace. There will be a time when the economy will fully reopen, and we’ll see the GTA population resume growth as immigration picks up based on increased federal government targets. This growth will support the demand for home ownership and renting over the long term.
But, let’s not forget the lack of housing supply will continue to remain an issue unless we see a greater diversity of home types coming online. As more people enter the GTA, they’ll need a place to live. Whether it’s renting or buying, affordable home ownership and rental options are critical.
There’s more to uncover when it comes to the housing market. By visiting TRREB.ca you can download the Market Year in Review & Outlook 2021 report and explore our interactive website to dig deeper into where the market may be headed. You’ll also be able to search GTA listings in real time and connect with a TRREB Member, if you’re looking to buy or sell your home or rental availability.
This article was written by Lisa Patel, Toronto Regional Real Estate Board President and Realtor. Patel is an entrepreneur and strong community leader who has served with many organizations and groups, including chairing TRREB’s Women in Real Estate Task Force.