Written By: Julie Achtermeier
In 2020, real estate was among a short list of sectors that saw tremendous growth in the second half of the year after initial lockdowns due to Covid-19 put a halt on most activity in the spring. As people adjusted to working-from-home, the desire to move outside the city to a suburban landscape with larger yards and a bigger floor plan allowed the market in Hamilton to rebound. By the fourth quarter of 2020, agents were dealing with multiple offers and record-breaking sales numbers.
Colette Cooper from Royal LePage State Realty said the time-on-market for a home in 2020 compared to 2019 dropped by almost half – what would typically take 32 days to sell was gone in 18, on average. And there was no slowdown in December.
“Typically, the last quarter is slow due to the holiday season,” says Colette. “But in 2020, December was very successful, and this has set the tone for 2021.” She says that buyers continue to take advantage of low-interest rates and a work-from-home lifestyle, jumping at larger suburban properties that provide additional work and living space as well as amenities such as pools and landscaped backyards.
“We also see an increasing demand for in-law suites,” explains Colette when asked about design trends heading into 2021, “In some cases, elder parents are moving in with families, or young adults are giving up condo life and moving back in with parents.” Along with a larger home, a tremendous amount of redecorating is taking place. “There is a real trend among buyers to find homes with an office, larger bedroom space, in-law suites, rec rooms and finished basements,” says Colette. “Buyers want to create a nice space since they are spending more time at home.”
What remains a challenge for buyers is the lack of inventory, which has become even more pronounced in 2021. “Homeowners in the area are modernizing the homes they are in, so not a lot is going on the market,” explains Colette. “Many are not comfortable listing so they are redirecting their money into renovations.”
The lack of inventory is responsible for pushing prices even higher, making home buying for first-time homebuyers even more challenging. In Colette’s office, average sales prices increased 21 percent over the same period in 2019, with homes selling 10-30 percent over asking.
Martin Mazza from The Mazza Team at Royal LePage State Realty looks at Jan 4th as Day One of the 2021 sales season and says the market has set a new precedent for multiple offers on approximately 80% of listed homes. “We target homes to sell at a price we feel reflects the market, yet are finding that multiple offers (up to 18 for a single listing) are driving prices to well over asking,” says Martin. “And we’re not talking about just one standout offer. In many cases, we have six or more top-heavy offers.” Despite Martin’s belief in target pricing, the market continues to say otherwise. The result was an overall increase of 25 percent in sales prices for May to December 2020, compared to the same period in 2019.
Martin is also seeing a growing trend towards in-law suites. “Families are opting to provide care and housing to ageing parents rather than send them into long-term care,” says Martin. “Children are also moving back home in some cases, and family members want to live independently with separate entrances and their own living space.”
By the end of 2020, the market had rebounded to record levels, with average prices across the GTA and southern Ontario at record highs, and the number of available listings at record lows. With the first month of the year already behind us, the industry shows no sign of slowing down. Sellers continue to benefit from the enormous windfall, and buyers must prepare themselves for bidding wars and making offers on multiple homes before finding the right one. Patience may be a skill that buyers need heading into the 2021 real estate market, but it is also an exciting time for them to redefine what “home” means. And, while we can’t predict what the rest of 2021 will look like, there are no obvious slow seasons in sight. It’s only full steam ahead.
Written By: Julie Achtermeier
In 2020, real estate was among a short list of sectors that saw tremendous growth in the second half of the year after initial lockdowns due to Covid-19 put a halt on most activity in the spring. As people adjusted to working-from-home, the desire to move outside the city to a suburban landscape with larger yards and a bigger floor plan allowed the market in Halton to rebound. By the fourth quarter of 2020, agents were dealing with multiple offers and record-breaking sales numbers.
George Niblock from Royal LePage Real Estate Services said December 2020 was his busiest to date, ending up with an increase in sales of 28 percent over the previous year. “I listed many properties in December right before Christmas, which is something I rarely do,” says George. “The demand was much higher since people weren’t taking time off to attend parties or gatherings as they normally would. Buyers stayed focused on buying right through the holidays.”
“People remain focused on making a move outside the city,” explains George. “They have adjusted to the work-from-home lifestyle as well as the various restrictions and changes and are ready to expand their living space. Clients who are making appointments are serious buyers.”
George explains that the sales process has become easier than during the first lockdown in March of 2020, with appointments booked through an app and Covid-19 assessment forms sent via email automatically. “We are still doing many virtual open houses, and buyers are doing their research online, so they are more qualified by the time we’re booking an appointment to see a house.”
What remains a challenge for buyers is the lack of inventory, which has become even more pronounced in 2021. As many people choose to move outside the city, those in the outskirts are choosing to stay put, dedicating their investment to renovations instead.
“The first month of the year is typically a quiet ramping up,” says Deborah Brown from RE/MAX Escarpment Realty. “But this year, we are already experiencing record-high demand and record-low supply.” Deborah describes December as traditionally a ‘planning’ month, where they prepare for the upcoming year, but this past year, she was out with buyers right through the holiday season.
The lack of inventory is also responsible for pushing prices higher, making home buying for first-time homebuyers more challenging. In many cases, young adults have opted-out of their city condos to move back in with their parents. The result is an increased demand for homes with rental apartments or in-law suites.
“The biggest demand is for detached homes,” explains Deborah. “Buyers are looking for more space as well as separate living quarters for younger or older family members.” And while the trend for larger homes soars, Deborah continues to see what she describes as the “move over buyers” who migrate from urban to suburban living – spending their money on more robust living space instead of life in the big city.
By the end of 2020, the market had rebounded to record levels, with average prices across the GTA and southern Ontario at record highs and the number of available listings at record lows. With the first month of the year already behind us, the industry shows no sign of slowing down. Sellers continue to benefit from the enormous windfall, and buyers must prepare themselves for bidding wars and making offers on multiple homes before finding the right one. Patience may be a skill that buyers need heading into the 2021 real estate market, but it is also an exciting time for them to redefine what “home” means. And, while we can’t predict what the rest of 2021 will look like, there are no obvious slow seasons in sight. It’s only full steam ahead.
