It is hard to imagine that in a pandemic, the Real Estate numbers have shot through the roof in the past 9 months. Nobody could have predicted that there would be a mass exodus out of city's and move to anywhere but.
When the pandemic started in March many of my clients opted to halt their Real Estate ventures and stay put. A month later, people started to feel cramped in their space and start looking beyond to see if they could afford a place with a backyard, some space and a home office. Many people did that and prices outside of the city core exploded. Prices also exploded all the way to Windsor and outskirts where nobody thought of. Find a nice peaceful town, with a backyard and pool, that's what people did.
Places near the city with these features went through the roof, the reason being, it was outside enough of the city core, but had land and space inside an actual house. We are still seeing a trend going upward daily and right now. Each sale spurts the market.
We've just gotten approvals for vaccines, while this is going to take time to get people vaccinated and many will not take a shot, what does this mean for the Real Estate market?
I have a few ideas, but like anything anybody knows, I am not a psychic. No matter what anybody tells you, they don't know the future and this year is a clear example of that.
For starters, when they open immigration, the condo market will come back. That means that condo prices will stop dropping, and investors will stop dumping their condos.
The government is also talking about increasing the immigration allowance to make up for the lack of it this year.
Immigration will affect students coming back to school in the fall. Regardless if students go to actual school or not, many will still want to come into the country and sign leases. Some might think this is not correct but many students come and sign 2-5 year leases with certain places, so they have a place secured for their duration of their term. Some students get grants and scholarships which pay them to be at school, so many will want to take advantage of that. Regardless schools opening is a big boost to the Real Estate market in major cities.
Vaccines mean that things will be somewhere back to normal. Concert, events, Travel, cottages, tourism, even within our own country will start to get the economy going. Its a domino effect.
Interest rates are so low right now, and that is why the market has been crazy. Why not upgrade your place and keep your payment the same? I keep hearing from people who keep saying they just re-negotiated their mortgage rate.
So what do vaccines mean to Real Estate? it means next year could top the record year this was.