Well… who could have imagined that 2020 would be like that? Rumours of a flu like virus circulating early in the year led to one of the biggest pandemics in recent memory. Lockdowns, restrictions, business closures and dramatic contractions to GDP around the globe.
So what does the future have in store for us?
Toronto real estate remained remarkably strong throughout the year. That said, there was some weakness in the condo market due to AirBNB restrictions and a general malaise associated with small spaces and pandemic restrictions. There was some repositioning of the market as people moved to the suburbs for greater space and greater affordability. This drove up prices in areas outside Toronto as well as in the recreational markets like Muskoka, Collingwood, Prince Edward County. Etc.
As vaccine rollouts begin around the globe, what can we expect this year? Firstly, the “fix” will not happen overnight. This will be a long term process that will continue throughout 2021 and likely into 2022. Pandemic restrictions will remain in place that will affect the way we do business, the way we conduct ourselves socially and our society in general. As far as the real estate market goes, there are a number of predictions. Some are predicting an appreciating market and some are predicting the bursting of the real estate bubble. This latter prediction is something that some have been suggesting for many years going back to the first part of the 21st century. One thing to keep in mind is that real estate is a long term proposition. The ebbs and flows of the market matter little if one’s view is long term, which it should be.
We are firmly set in our views that normal life will eventually return to cities around the world, Toronto being no exception. Will we shake hands again? Will we greet one another with kisses on the cheek? Will we once again become accustomed to living in small spaces so that we can be in the heart of vibrant cities offering exciting surroundings and the lifestyle that urban centres have to offer? We believe so. 🙂