A Realtor’s Opinion About Buying A House In Toronto In 2021
Posted On August 10, 2021
Buying a house is an exciting journey. From planning the interior and buying decorations to getting pre-approved and winning bidding wars, buying a home in Toronto is a real roller coaster ride! To make this ride more enjoyable and fruitful, we have listed a few key points that you should know before setting off for your house-buying journey in Toronto. Here are the top 4 things that a realtor would want you to know about buying a home in 2021
1. Current view of Canadian real estate market- “yay” or “nay”?
Despite COVID, the real estate market soared after being considered an essential service, and people began relocating to cater to work from home schemes. Davelle Morrison, a Toronto-based agent, who has witnessed bidding wars with up to 70 offers in the GTA, shares his perspective on Toronto house for sale in 2021. According to Morrison, the need for more space will continue to strengthen the demand in 2021. In cities like Toronto and Vancouver, record-high demand — especially for Toronto homes for sale— combined with a scarcity of inventory is driving prices skyrocketing. Morrison believes that you may also be able to get a reasonable price in Saskatchewan, Ottawa, and Regina, where house prices are predicted to stay stable or decline.
Each property in Canadian real estate offers distinct features that might interest you depending upon three significant factors-
Your Family type
If you plan to live alone in your house, you might find Condos, semi-detached apartments or “bachelor” units the right fit. Families with children would mainly consider townhouses or detached Bungalows to provide them with the luxury of privacy and neighborhood networking.
Your budget and income
“To calculate “an estimated gross income required to buy a house, you need the purchase price, down payment, interest rate, estimated property taxes, and a minimum of $100 a month for heating costs. Lending banks do not factor in other utilities,” says Adrian “Williams, a Toronto-based mortgage broker. As per your monthly income, such an estimation of your budget affects the type of house you can buy in Canada. You may want to buy your first property depending on whether your budget is flexible or rigid. Condos usually cost less than townhouses, while the cost of apartments and semi or fully detached homes may vary depending upon the location.
The region or area in Canada
At an average price of $709,825, you might find the best townhouses and detached bungalows in Toronto. In contrast, in more provincial regions like Regina, you may be able to afford the same within an average price of $314,714. So area plays a significant role in determining the type of property you can buy as a first-time buyer.
3. Should you consider buying a Condominium at this time?
Toronto’s Condo demand fell in big cities such as Toronto, Vancouver, and Montreal last year. According to Morrison, the condo market, which fell 8.5 percent last October, is gradually returning to pre-COVID values, but there is still a lot of inventory on the market. That means if you’re trying to buy one, you may be able to get a reasonable price. Prices will return to “normal” until people can drive about and fly again, she believes.
4. What are the mortgage prices in Canada?
If you are still a homeowner, now may be a decent time to split your mortgage and get a cheaper interest rate before they begin to rise again.
According to the Royal Bank of Canada, though interest rates are expected to remain low, “long-term rates will begin to creep marginally higher.” And with the minor victory of low interest rates, Canada is seeing a mortgage shortage that is keeping many consumers out of the economy. “Many who could afford to buy a home in 2020 are likely to switch to WFH setups quickly, whilst those in sectors hit harder by the pandemic, such as the service or tourism industries, are more likely to be shut out”, says Andy Yan, an urban planner and director of The City Program at Simon Fraser University.
Morrison believes that it is entirely natural to feel anxious about the real estate trend when you seek to buy houses for sale in any region of Canada. But words of wisdom from realtors allow us to absorb the accurate picture. With the key points to note about the real estate market in Toronto in 2021, move forward with a hopeful mindset to buy the best Toronto house for sale in 2021.