We wrap 2021 with immense gratitude. The real estate market was very active this year, making it challenging for those who were looking to upsize and downsize and the right strategy was needed to ensure buyers and sellers made the most of it. We are glad to report that we made 35 transactions throughout the year!
I think most realtors would agree that 2021 was a year like no other, with much apprehension and excitement induced by a highly dynamic market. Here's what we broadly observed:
Looking Back At 2021:
Each Month Was Unique. The year started with a higher number of listings and transactions. Those who couldn't list or buy during the 2020 lockdowns, started to emerge on the market as lockdown pressures decreased. This meant higher inventory in spring - with record-breaking sales and equally busy summer. Just when we thought, things had started to ease down in the fall, sales in October and November took everyone by surprise. Even with less inventory towards the end of the year, the market was hot with prices rising and buyers finding the right investments.
Rental Market Bounced Back: Toronto's rental market took quite a hit during the pandemic, with GTA rents hitting record lows. But, with a gradual easing of COVID-19 restrictions, we saw the rents going back to pre-pandemic levels and the rental market making a quick recovery.
Investor's Market: A soaring market has caught the attention of investors who aren't letting any opportunity go. Sadly, this is putting first-time homebuyers at a disadvantage but sellers are happier than ever with multiple offers over the asking price.
What You Should Look Out For In 2022:
Inflation and interest rates: With higher inflation, mortgage rates are up for an increase. Mortgage rates have been very low all of 2021, incentivizing more transactions in the market. But as the Bank of Canada has signaled, 2022 may bring higher interest rates. This is estimated to have an impact on demand in the long run. Read more on this here.
Low Inventory: Though new constructions are visible as far as the eye can see, the inventory is still low, thanks to the ever-increasing demand for homes. Experts have predicted that Ontario needs at least a million more homes over the next decade to keep up with its population growth. In the short run, this will keep an upwards pressure on price. I am looking forward to next year as more condo projects will be launched, creating more supply but I believe the detached segment will still remain very competitive for the foreseeable future. Read more here.
New Policies: Affordable housing, vacancy taxes: New policies are also in play in 2022. Open door programs and a task force are looking at improving the affordability of new homes built in Ontario. Vacancy taxes levied on empty properties hope to push more owners to put their homes on the market. The tax rate will be set at one percent of the property’s current value assessment (CVA) for the year the home is vacant. The tax will be levied through 2022 and will be payable in 2023.
On a more personal note...
I won the Forest Hill Real Estate, Top Producer Diamond Club Award - where I stood at 4th place amongst 2500 agents in the GTA. Thank you for putting your trust in me!
Planning to buy or sell in 2022? Let's work together!
Reach out for a free home evaluation and consultation - with no obligation to list!