Page 24 - REN_May-June 2021

The market started to regain its footing in May and June, quickly ramping up throughout the summer months.
Pent-up buyer demand from the spring and low mortgage rates were two major driving forces behind the market’s
recovery. In June 2020, REALTOR.ca reported its best month of user traffic with a 42% increase in unique visitors.

Morrison noticed high demand for condominiums in her local market during June, which was quickly followed
by a slowdown in July as more inventory flooded the Toronto market. While the overall market experienced an
exceptionally strong performance in the second half of 2020, a divergence between condominium and single-family
home sales emerged in major urban areas. Buyers began looking for more space outside of cities as many investors
offloaded condo units in response to the sluggish rental market.
“I would say 2020 was very different if you had a condo on the market versus if you had a house on the market,” said
Morrison.
In the Vancouver region, Dinani says that single-family homes continue to lead the way, while the condo segment
gradually builds momentum again. Record-low interest rates and domestic buyers, particularly Millennials who are
looking for low-rise properties, have contributed to creating significant growth in both home sales and prices.
“We’re now seeing multiple offers [become] commonplace across all product types,” said Dinani. “We’re well above
the active listings ratio in most segments, well into seller’s market territory. [It’s] one of the strongest seller’s markets
I’ve experienced in my 15 year career.”
In total, 551,392 properties changed hands over MLS® Systems in 2020, with the national market posting a 12.6%
year-over-year increase in sales and setting a new record, according to CREA.

Buyers should brace for a busy and competitive market in 2021
For home buyers looking to purchase this year, there are few indicators that the demand for Canadian real estate will
slow down anytime soon.
In its latest report, CREA noted an uptick in demand had been observed in all parts of the country throughout 2020,
even though the upward pressure on pricing wasn’t equal between all regions. In 2021, all provinces are expected to
see a rise in sales activity, with the exception of Ontario, where a supply shortage is anticipated to cap the number of
sales. Morrison explains that while supply has been increasing, it’s not keeping pace with buyer demand. In January,
she saw the return of bidding wars and properties selling above asking price.

“I think it’s the demand that has gone crazy, partly because people now know they’ve got low interest rates for a
couple of years,” she explained. “Money is cheap right now, hence the reason to buy a second property or get your
first property.”

As global vaccination efforts continue to ramp up, experts anticipate that higher federal immigration targets and
returning Canadian expats will also contribute to the demand for housing.

“Right now, we don’t have a lot of that, but that is part of the commitment from the federal level that there will
be [more immigration] when the borders open up, [and] there will be a commitment to bringing more folks into
provinces,” said Dinani. “If you look at the energy centres like Vancouver, Toronto, [and] Montreal, they’ll be the
beneficiaries of this immigration.”
For those purchasers who may be anxious about timing the market correctly in response to rising demand and prices,
Morrison says the best time to buy is whenever you are ready — nobody can time the market perfectly, whether
it’s real estate or the stock market. While the market is expected to remain strong for the next three months, Dinani
predicts that as life normalizes towards fall 2021 and into the winter of 2022, the market will begin to provide more
sustainable growth.

“The market has risen quite considerably in the last six months, and there will be a period where it levels out,” he said.
“Nothing can rise infinitely. It has to level out at some point, and I do anticipate that happening.”

24 | REAL ESTATE NOW | denise@BCislandhomes.ca