Realosophy's John Pasalis talks to Yahoo Finance on the record highs in real estate and why work from home, low inventory, bidding wars, and the Bank of Canada raises housing prices in the Toronto area.
Canada’s real estate markets broke records in 2020, as people stuck at home during the pandemic looked for more space outside of city cores.
Realosophy Realty President John Pasalis joins Jessy Bains at Yahoo Finance Canada in an interview to discuss, along with Oakwyn Realty’s Steve Saretsky.
This month’s episode discussed advice for buyers and sellers, low inventory, mortgage rates, condos, bidding wars, the urban exodus, government policy, and the Bank of Canada’s role in rapid home prices increases.
Looking back at 2020, it ended being the busiest year for Canadian real estate. "All indicators are pointing to a market that will keep heating up in 2021," says Pasalis. For the first half of the year, it'll be important to look at key price growth in the GTA.
Toronto looks to continue having a super competitive market. There was a 162% annual increase in year-end active listings, a record high of 8066 units in the suburban market. Condos meanwhile are down but there has been a big return in demand for downtown condominiums.
"Condo investors remain optimistic. At the end of the day, a lot of them see this decline in prices as a buying opportunity. They see the decline in rents as short term and think it's inevitable that downtown prices will explode," says John.
Both John and Steve think the strength will continue in Toronto and Vancouver, with prices rising in the months to come due in large part to a lack of inventory for sale and strong demand.
Click on the video above to watch the full interview.
John Pasalis is President of Realosophy Realty, a Toronto real estate brokerage which uses data analysis to advise residential real estate buyers, sellers and investors.
A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).