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.
