The day like today when we'll reach almost 20 celsius in Toronto just reminds us of U2's It's a Beautiful Day (yes we're a bit vintage now and still like U2).
Normally, at this time of the year (at least up until 2019), we'd be busy with March break activities & sunny destinations. But it's 2021 and we just had 2020....when things went a bit sideways. While we can talk about many things in this newsletter, the one thing that most of us are extremely curious about is the hyper-activity in the real estate market. It seems like the entire population of this region is moving towards low-rise homes to get more space, backyards, basements, and more. Keeping that in mind, is it tough to be a Buyer?... Yes because we literally haven't seen the kind of sale prices that we're noticing at the moment. Is it tough to be a Seller? Hmmm... well only if you think that perhaps the warmer weather could bring you even better price.
So Can We Now Call This Market a "Bubble"?
Well, if you were following the real estate activity back in 2016, there're are many similarities to today's market. The notion of being in a Bubble was very much the talk of the town back then. Fast forward 5 years, we're seeing the same supply-demand challenge, lack of purpose-built rentals for young families, and development red-tape in core pockets preventing new construction. To top that off, we're seeing a shift in consumer behaviour where "bigger is safer" and high-rise lifestyle and downtown is not as attractive at the moment. While the local media loves sensationalizing real estate news and stories and has recently started ringing some alarm bells (nothing new there), the market is certainly more active than we would like it to be but not at a point that it would come crashing down or simply pop.
If That's So, How & When This Activity Will Slow Down?
We believe that gradual rise in interest rates which we're already seeing happening will "calm" down this hyper-activity to some degree, the fatigue of losing on multiple offers may discourage some buyers to "wait it out", and ultimately when things start to open up and majority of the population is vaccinated, we'll begin to see a more rational and less impulsive consumer behaviour towards real estate. When will that happen is anyone's guess at the moment. The market still has some steam left for at least a few months before we see a dramatic change in the real estate activity. In the meantime, we're here to help answer any questions that you may have. Connect with us to chat about your specific curiosity questions. We're always up for a virtual coffee/tea or a beverage of your choice.
Usman & Komal
"It's a beautiful day and I can't stop myself from smiling
If we're drinking, then I'm buying
And I know there's no denying
It's a beautiful day, the sun is up, the music's playing
And even if it started raining
You won't hear this boy complaining
'Cause I'm glad that you're the one who got away
It's a beautiful day"