As vaccine rollouts continue across Canada, and Ontario entering its second phase of it’s vaccination plan, both buyers and sellers are looking to their local markets for any signs of slowing.
During this time last year, the market saw a marked shift in demand as lockdowns pushed city-dwellers out of their downtown condos and apartments in search of larger spaces more accommodating to new work-from-home arrangements. The market saw prices of single-detached family homes shoot upwards to an average of $634,799 across the London and St. Thomas area in March — the highest prices have been since the start of the pandemic.
With the Government of Ontario planning to see the majority of Canadians vaccinated before the end of the year many are looking to the future in anticipation of how it will affect market trends.
Don’t expect a market crash.
While COVID-19 vaccines suggest a return to normalcy, don’t expect them to suddenly flip the market on its head. Experts suggest that this real estate bubble isn’t expected to burst — at least not for a long time. Demand for homes had been driving the market in areas such as London and St. Thomas well before the pandemic, with average sale prices climbing steadily to record breaking numbers throughout 2019 and into early-2020. Even as more Ontario residents receive their vaccinations and restrictions continue to relax, the market isn’t very likely to change drastically enough to signify a ‘crash.’ (Sorry, buyers!)
Mild stabilization but continued growth of single-detached homes.
Rising prices of single-detached homes across 2020 and into 2021 were largely driven by an influx of buyers leaving the city in favour of suburban areas. Even as vaccinations allow GTA residents to put off moving plans as they regain more freedom to move around and work, thus lightening the influx of buyers to London and area, single-detached homes will continue to be in high demand. Prices may see some cooling and stabilization, with potential for remaining below an average of $650,000 at the tail end of Ontario’s vaccination plan.
A condo-market rebound.
City migration will most likely slow to pre-pandemic levels through the next few years as jobs slowly phase out work-from-home and remote work arrangements. The Greater Toronto Area may see a return of its condo market as the need for more space settles again. However, out-of-city migration has consistently risen as cost of living in areas such as Toronto continue to rise.
Sellers, don’t wait.
The Ontario Government expects full vaccination for residents over the age of 16 beginning in July 2021, and we can expect to see some changes in the real estate landscape in the coming months. If you’re planning on selling your home for its best price, we recommend listing this spring. While the market may not indicate severe changes in its current trajectory, a cooling of the market can cost you thousands of extra dollars. Don’t wait, our realtors can get your house on the market in weeks.