After the Covid-19 pandemic, the Real Estate market saw a drop just like every other market. The demand and the supply for all kinds of properties saw a downfall. However, just a year later, the trends that we see are unbelievable. The prices of the residential properties are crossing the 1 Million mark, showing a rise in the demand graph. Let us analyze the trends in the real estate market caused by Covid-19.
Take a look at how the Canadian Housing Market performed in Febrauary 2021.
COVID-19 has accelerated a change across the Canadian real estate market. As the urbanization trend enters a new phase, retail properties are facing more disruption. Moreover, remote working tempers the outlook for offices and e-commerce is highlighting the industrial real estate.
While the pandemic is creating an environment of caution, there are a few real estate companies that are seeing growth. The key value of these companies is their flexibility in adapting to the changes in investment and development in the market strategies.
The past year has surely altered the country’s economy, and real estate is no exception. But is it a good time to buy or to sell? Here are a few things to consider before you make a decision.
1. Does your home meet your requirements?
Your requirements may change according to the situation. Your needs may have changed due to COVID-19, and the place where you live may no longer meet your needs.
If remote work becomes a permanent option, some home buyers might look for more square footage and increased green space. The pandemic is shifting the outlook for condos which are incorporating new features to attract new buyers.
This is why it is important to seek advice from professionals and evaluate one’s financial situation to be able to make tough situations. Professional real estate agents can help you guide through tough times. They can help you find the right financing solution.
2. Understanding the real estate in your vicinity.
According to Global News, in February 2021, there has been a 73.3% increase in home sales in Vancouver city. The property prices have seen a rise of 6.8% since the last year. Whereas, in Toronto, since 2020, the sales have increased up to 52.2% with a 14.9% hike in prices.
“We forecast 10% growth in the average selling price for 2021. On the whole, we do expect to see double-digit growth in home prices”, says Jason Mercer (Toronto regional Real Estate Board)
Here’s a pictures depicting sharp rise in the average monthly home sales:
Taken into consideration, the strength of the market before the crisis, jobs and the economic recovery, the effects on the real estate market may vary in your area. Before deciding to sell or buying your property, take the time to research the strength of the market in your area.
3. Has the real estate market in your vicinity started to recover?
According to the Canadian Real Estate Association (CREA), property sales in Canada increased 7.2% from November to December 2020. For a fifth month consecutively, national sales remained at an all-time high, going up by more than 55,000 homes.
But despite the Covid-19 pandemic, it’s safe to say that the Canadian real estate market is booming.