If you’ve seen my video, you might remember these trends that I predicted before the pandemic hit us.
I get these types of questions a lot from my clients, my family members, and my friend whenever I meet them. Whenever I go to a meeting or a dinner appointment they all ask me the same questions. “What do you think about the real estate market?”, “Are we going to see a seller’s market again?” “Is the buyers market going to drop?”
Today I will discuss 3 trends I expect to see in the market.
- It is HOT, we will see a price increase of 7.5% due to the huge increase in population growth but a limited supply of housing options. It’s a seller’s market in 2020.
- “Missing the middle houses”. Millennials home purchasing concerns include the current size of available housing or the high price. Many options today are too small for home buyers that are considering raising a family in the future! Because of this, we can expect to see more pre-construction sales from developers.
- First-time buyer program will be implemented by Trudeau to help Millennials! This program essentially makes it easier for first-time homebuyers to purchase a home and enjoy a lower monthly mortgage payment. Lower mortgage payment means more affordable homeownership!
Here are my new predictions for the real estate market for during and after the current novel COVID-19 pandemic. We will not see any sales activities until the pandemic is over.
It could potentially last until July or August. I think our problem is that we need to have stricter restrictions for the quarantine. It has been proven in most of the Asian countries that a temporary shut down can have a hugely positive effect on the economy in the long term.
We may see the market go down in the short term however, we anticipate there will be V shape recovery due to the numerous demands for property in Toronto.
For a condo that is 650K and under and a freehold that is 1.2 million and under, the market will remain strong and the V shape recovery might be faster than we expected. One thing to keep in mind is that we might be facing a Financial Crisis soon. The Financial Crisis will cause the government to print more money, unfortunately making all assets with yield go up in the long term (a period that is longer than 3 years). Another possibility is that we may see the market freeze up in the coming several months.