Welcome to 2021! Suffice to say we’re all jubilant that 2020 is over and that there is light at the end of the tunnel. Personally, I’ve decided to take life one day at a time and to find joy in all I do. I’ve come to expect there will be good days and bad days with the intent of simply riding the tides as they come. Not always an easy feat…
That said we humans are the most adaptive creatures on the planet and are pivoting our lives in ways we’d never even imagined. The pandemic has forced many of us to learn how to accept that which we cannot control and even to recognize that opportunities often emerge through crisis. Covid 19 has clearly tilted the world on its axis but has also given us the occasion to review our lives and find ways to renew, revitalize and regenerate. Creativity abounds and innovation is ripe for those who have found strength in having a positive mindset.
Where are the opportunities for you? How can you realize your dreams? Are you finally ready to move out of that cramped apartment? Are you ready to diversify with an investment property? Are you looking to sell your Toronto home and head out of the city like so many have done?
Wherever you might be in your personal trajectory here are some insights (dare I call them predictions ?!?) which might give you some clarity.
Interest rates will remain low through 2021 and will continue to be the key driver facilitating movement both within the city and outlying areas. I would not be surprised if many who rushed to move out of the city crave the pulse of urban life once the pandemic has run its course. So if you are planning on relocating think it through and make sure it will be a good long term move for you.
The more the GTA grows the more valuable the Toronto core will get so if you can afford to buy in Toronto, do it. Buy when you can afford to get into the market and buy the best location you can afford. Your property will rise in value. Take advantage of these low interest rates. Wealth is about what you are able to borrow.
I’m seeing movement again of small one bedroom condos as investors are realizing that there are some deals to be had. It’s hard to predict the bottom but it’s inevitable that when the pandemic is behind us students will roll back in, travel and tourism will return and there will even higher levels of immigration. Did you know that pre pandemic Toronto was the fastest growing city in North America and that 127000 people moved here in 2019? Rents will return to normal (at this time rents are down by approximately 15-30% in the core) as will condo prices (currently down by 6.7% for 2020 in the 416). I’ve personally seen an uptick in activity in the condo market since the beginning of 2021. There are definitely more investors back at the table.
Prices of low rise housing (detached, semi-detached and townhomes) have flourished through the pandemic both here in the city and in outlying areas within a 2-3 hour range from Toronto. This trend will continue based on the economic principal of supply and demand. The bottom line is that a shortage of inventory matched with high demand will invariably result in price increases. With the severe inventory shortage at present it’s starting to feel a bit like the beginning of 2017 all over again. House sellers are going to do very very well this year.
Larger 2 bedroom condos and even smaller offerings with nice outdoor spaces or a home office/office nook will remain desirable both for upsizers and first time buyers. Of course there are some people who can have it all and will keep a Toronto home or condo even though they may have moved their principal residence out of the city.
Tenants are seizing opportunities. They’re negotiating with their Landlords for lower rents or else they are moving out. Savvy landlords are offering free rent rather than severely reduced rent but unless there is an outdoor space or some defining feature that makes the unit stand out from the masses even the best incentives won’t entice. If you own a smaller more generic type condo and are considering selling, think about the equity you’ve gained during the length of time you’ve owned the property and capitalize on that. Be grateful for the increase but beware that a greedy mindset will surely backfire.
Working from home is likely here to stay for many people but not for everyone. People will start craving the collegial environment of working alongside peers and colleagues. I for one can’t wait for the day when I can see my colleagues in person and work from my Sotheby’s office.
The commercial real estate market is struggling as retail vacancies surge but remember that most of these Landlords don’t have mortgages and can afford to hold out until better times both on signing 5 year leases at lower rates and on selling their properties for less than what the true value is under normal circumstances. There may not be as many deals on commercial buildings as one would think.
Office leasing has taken a hit during the pandemic but there will be a demand for smaller mixed use office buildings which are an excellent long term investment.
Diversify if you can and think long term. If you have the means jump into the market. Don’t wait. If you decide to explore smaller communities outside the core let me know. I have partners who can assist.
If reading this has spurred some thought. Great! Even if you don’t end up making a move this year or are at the very beginning exploratory stage call me anyways and we’ll brainstorm together to look at your options. I support that your decision has to be right for you and your circumstances.
I feel very grateful as I look forward to another year in which I get to serve my clients and help people realize their dreams.
Please be safe, be kind and be well everyone! We’re headed towards better times!
Want stats? Click here for December 2020 & YTD Market Stats
Matching her knowledge of Toronto’s eclectic mix of central core neighbourhoods and impassioned by her diverse mix of buyers and sellers, Kimmé is naturally motivated to create a positive and professional experience. Kimmé does her homework and knows her inventory. She is genuine, honest and a straight shooter. Nor is she afraid to think “outside the box” as she employs creative strategies to make dreams become reality.
Born and raised in Toronto and coming from a successful fashion background in design and management, Kimmé could not have met a better match for her entrepreneurial skills than by working in Real Estate. Inspired by her father, well known Toronto clothier to the stars, “Lou Myles”, she learned from a very young age to work hard and strive for excellence.
Licensed since 2005 as a full time Sales Representative and a Broker since 2016, she continues to be proud to be affiliated with the Toronto office of Sotheby’s International Realty Canada and to be part of the highly respected world renowned global luxury brokerage, Sotheby’s International Realty.
Kimmé has received numerous sales awards throughout her career including the prestigious Gairdner, Diamond and President’s Awards. She has completed extensive negotiation training and is among a select group of realtors in Canada to hold the Master Certified Negotiation Expert (MCNE) Designation and the Certified Negotiation Expert (CNE) Designation. In addition, she is a member of the prestigious U.S. based Institute of Luxury Home Marketing and also carries the Luxe – Luxury Listing Specialist Designation. She holds the SRS Designation – Seller Representation Specialist and the SRES Designation –Senior Real Estate Specialist – both accredited programs through NAR – The National Association of Realtors, USA.
Entrusted with the life choices of her clients, Kimmé is truly honoured to have the opportunity to serve and assist others and does so with integrity, commitment and enthusiasm.
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