A very turbulent year is behind us with restrictions, lockdowns and the fight against the spread of the COVID-19 pandemic. However, the GTA real estate market made a recovery by the end of the year and is still going strong in early 2021. The stats for January sales 2021 have grown by 52.4% on a year-over-year basis and prices are also up by 15.5%, with the hottest market being detached homes.
Detached home sales and prices are drastically up
With the ongoing pandemic, many GTA homebuyers realized that they needed more space. Social distance rules reminded GTA homebuyers of the importance of having plenty of room to set up a home office, have an extra room in case one needs to isolate due to infection, as well as the significance of outdoor space, especially since the lockdown and restrictions on movement confined most people to work, live and socialize at home. All of that, coupled with the low interest rates, resulted in a strong demand for detached homes in the suburbs and neighbourhoods somewhat further away from the downtown areas. Some suburban areas, including smaller communities, saw a 36% price growth, which indicates how much the pandemic influenced homebuyers. The Durham Region for example saw a 33% price increase compared to January 2020 with an average of just 12 days on the market.
Supply is scarce and demand keeps rising
GTA detached home sellers currently have the perfect opportunity for a fast and profitable sale. The demand is high and inventory levels are low, which means that the GTA detached market is again a seller's market. Many homebuyers in the GTA who were held back due to the lockdown are now back and looking for their perfect house in non-urban areas while interest rates are still low.
Bidding wars as a result of multiple offers
The fierce competition among GTA homebuyers is best reflected in the number of offers an average house on the market these days receive. For example, a house in Pickering saw 27 offers in January, a Mississauga townhouse even 71. This means that GTA sellers can count on bidding wars and bully offers
The market conditions are ideal for GTA sellers
Given the current state of play, now is the perfect time to sell. If you're thinking of selling your home in 2021, it's time to seriously consider moving up your timeline to take advantage of the hot real estate market at the moment.
To get the most out of the sale, though, make sure not to skip the prep work. Increase your home appeal with cleaning, decluttering, small repairs, and the right marketing strategy. Even though buyers might be less picky these days, you still want to maximize your chances of selling at the highest possible price, so make sure to get a real estate agent on board as well. For more selling tips and info on the current market, contact Hussain Al Hasani here.