Debt Free in 30's Doug Hoyes talks to John Pasalis about the pandemic lockdown, government policy, buyer fatigue and more.
We joined Doug Hoyes, our Toronto Summit guest, for his podcast Debt Free in 30 to chat about what's going on with real estate in 2021. Even though unemployment is high and we are in a lockdown, the real estate market is “on fire”. Why?
Watch the video above for the full interview - here are a few highlights:
What's happening with the market exactly?
The housing market has been unbelievable. In January, we saw low-rise prices in the city up over 30% compared to last year. There is a big boom in housing demand, especially in the suburbs of Toronto. For condos, demand has rebounded though prices are slightly down compared to last year.
How is it possible that the economy is in lockdown, unemployment is high, businesses are closed, yet real estate prices are going up?
People most impacted by the pandemic are not home-owners or home-buyers. Home buyers were still actively searching while working from home and jumped back into the market in the summer of 2020. Once the pandemic restrictions eased, people resumed their search in the market.
More people are working from home, so we understand why single family homes are going up in value, but why are downtown condos also holding their value when everyone has abandoned the city?
When the condo prices dipped slightly it triggered investors to jump back into the market. Up until October, the condo market was very slow. Around mid-November, there was a surge in demand. The dip was a buying opportunity and there was optimism with the vaccine rollout which drove investors to buy.
Are we approaching buyer fatigue?
We don't see buyer fatigue yet. There is a lot more anxiety from buyers who want to buy and get into the market. We also see a lot more speculation with buyers intentionally buying to flip.
Watch the full video to learn the answers to:
- Should I buy a house now?
- How some purchasers in 2017 lost their entire investment
- When will the boom end?
- Condo sales prices have dropped slightly, but rental rates are down significantly. Why?
- Is now a good time to rent? What advice would you give to renters?
- What will be the signs of the end of the real estate boom?
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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).