When the global impact of COVID-19 became a shocking reality for Canadians in 2020, it felt like every facet of our day-to-day lives had been flipped upside down. Before the pandemic, Toronto’s housing market was hotter than ever in favour of sellers. But like nearly every other industry, COVID-19 brought a wave of uncertainty about what was to come for real estate in the city. Two years later, many homeowners in the GTA who are considering selling have concerns about how the pandemic may have impacted the value of their home.
Here are a few things homeowners should know about selling in 2022.
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Early Pandemic Impact
When Toronto entered its first lockdown just over two years ago, many real estate agents anticipated the famously hot market to slow down. However, what really happened was the exact opposite. Across North America, the real estate market surged tremendously with more active buyers than ever.
In the two years since then, a handful of trends and market studies have provided us with a greater understanding of how COVID-19 has impacted real estate overall. While there are a number of overall takeaways from these insights, one thing is clear – it’s still a great time to be a seller.
Have concerns about selling your home in 2022? Learn why now is the best time to sell on our blog.
One of the primary factors driving up home purchases during the pandemic were new circumstances and perspectives Canadians faced about life at home. As the home became more of a 24/7 hub, rather than simply a place to spend evenings and weekends, our relationships with our homes changed. Early on, apartment and condo dwellers began to desire more space. As a result, many Tororntoians chose to upsize and purchased properties outside of the city centre.
Along with new priorities emerging related to living spaces, lifestyle changes brought on by the pandemic also offered many residents new perspectives on their communities. As a large portion of Canadians transitioned to working from home, homeowners and prospective homeowners were offered greater freedom as to where they could live. Without having to worry about commuting and other factors, many buyers set their sights on new areas. Some buyers choose to relocate to adjacent suburbs or exurbs, and others choose to head closer to the city centre. In some cases, homeowners chose new cities or even provinces to call home.
The good news is that these emerging perspectives only complimented Toronto’s already hot seller’s market. With more buyers entering the market, bidding wars became increasingly prominent and selling prices broke records around the GTA.
Want more information on how the pandemic has impacted Toronto real estate? Check out our answers to the top 12 COVID-19 real estate questions on our blog.
While the increasingly strong seller’s market is good news for the final sale price of your home, what does it mean for sellers who are looking to buy again? One of the primary reasons that current homeowners are hesitant to sell is that they fear they may not be able to reenter the market as buyers.
The good news is that if you sell now, you can still earn enough for a smaller home or condo in a handful of great affordable areas in the GTA. Plus, as the Bank of Canada continues to increase interest rates, it’s better to enter the market as a buyer sooner rather than later. Of course, selling now doesn’t mean you have to buy right away. Depending on your unique circumstances, renting can be a great option in the short or long term. A great real estate agent can offer you the best possible advice based on your needs.
Considering a move? Explore these resources to help make it a great success.
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Whether you’re looking to downsize, relocate to a new community or are simply looking for a change, there’s never been a better time to be a seller in the GTA. While the market is trending to continue heating up in the future, the COVID-19 pandemic has shown us just how quickly things can change. Although this can seem overwhelming, a great real estate agent will be able to help you navigate the selling process based on your unique needs and goals.
As local experts, we know all there is to know about Toronto’s evolving market. If you’re ready to begin the journey of finding a new home, get in touch with us.