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What is the future of real estate in GTA?

The Greater Toronto Area has a rich potential for real estate expansion. Before learning about the future of the market, let us have an overview of it: 

Overview of real estate in GTA 

In recent months, home prices in the Greater Toronto Area have risen sharply, pushing more potential buyers out of the single-family home market. The value of the apartment has not kept up with the price. In such a case, the real question is what is the future of real estate in GTA? During the pandemic, people looking for houses are the first wave of buyers. They need more workspace at home, as well as a secluded space for both parents to work and their children to study. With rising house prices and the weakening of apartment values, many renters are beginning to worry about facing another house price hike as first-time homebuyers looking to establish equity have flooded the apartment market. Do you want to know What are the Best Neighborhoods in GTA?

A recent survey carried out by CIBC has revealed that 20% or more people are all set to shift from a work-from-home opportunity to a full-time return to office working space. Similarly, we hope that the vast majority of students will be able to return to school to avail full-time hours. This suggests that there may be a spike in migration to the main city space, outer suburbs, and rural areas. An important question that arises from current needs is: If working from home and studying at home are temporary market drivers, what will happen after the pandemic ends? People who are currently planning to sell their homes will be encouraged because their home values ​​are at all-time highs and they hope to go ahead and sell during the pandemic. 

People planning to buy houses can look forward to possible market adjustments, but there is no guarantee on whether house prices will drop in GTA by the end of 2021. The economic recession, high unemployment rate and the definitive removal of restrictions are now the main sources of uncertainty about the value of real estate in GTA. Many industry experts have predicted that consumer behavior is similar to that of the "roaring twenties" after the pandemic. Canadians who prioritize freedom, nightlife, and newly acquired travel are less eager to go home and shop. 

Where is the price of real estate in GTA heading towards? 

Many believe that the global pandemic is enough to put a hold on the growing trend of the real estate market in the Greater Toronto Area. However, it is not so as the cost of all housing types such as connected houses, detached homes, and apartments are registering a high growth. It's newsworthy that prices continue to climb even after a turbulent year and a half of shutdown that has strained all aspects of the market. According to the House Price Survey carried out by the government, the total price of GTA homes increased 17.9% year-on-year in the third quarter of 2021 and is currently skyrocketing to a sky-high price of $ 1,075,900. This is part of an uncontrolled trend in the local housing market of Canada which seems to be a never-ending affair. 

The overwhelming demand for homes in the Greater

Toronto Area has been a recurring theme throughout the pandemic, as evidenced by the 24.2% year-on-year increase in the median price of single-family homes, which will now cost a home buyer an average of $1,352. 200. To avail an apartment to your name in GTA, one has to dig deeper. Although not as extreme as the appreciation of single-family homes, apartment prices have also risen sharply. The 12.3% median year-over-year price increase brings the median cost of a GTA apartment to $645,300. Rapid change in price trends as such makes it difficult to analyse what is the future of real estate in GTA. 

Toronto itself has witnessed price growth, although not quite as extreme as the larger area takes into account. The price of owning a home was 4.8% higher than in the third quarter of last year, and total home prices in Toronto rose to $ 1,110,500.  The median price of a single-family home rose 11.9% to $ 1,566,600 and the price of apartments rose 6.7% to $ 687,700. All these growing figures highlight how busy the market of real estate in GTA is.

Several industry experts predict that more green dollar signs will appear in the GTA real estate market, and total home prices within the GTA range in the fourth quarter of 2021 are expected to increase by 14.5%. This appears to be straining news for homeowners, although it may be good news for some short-term investors. 

Is it the ideal time to buy real estate in GTA?

It is hard to say what is the future of real estate in GTA as the trend in prices has been constantly going up. However, there are downside risks as December prices seem unlikely to be lower than current levels. Prices have continued to rise, but efforts to contain the coronavirus are driving it up. Once vaccination starts and restrictions are lifted, prices may weaken in the second half of 2021. It is during this span of time when you can decide upon the best places to live in Canada and later settle there. In any case, the annual real estate cycle tends to benefit buyers in late summer.

At this stage, it is difficult to determine how much impact the global pandemic will have on the market. If you are considering buying a property, be sure to negotiate and get as close to market value as possible. Similarly, when it comes to financing, don't be greedy and focus on stability.