Since March 2020, when you know what forced us into an agonising series of lengthy, rolling lockdowns, how Toronto residents live and work has changed dramatically — and in some cases, permanently — have changed dramatically — and in some cases, permanently.
In no sector has the effects of this transition been more visible than in the real estate market, where condo sales have declined, rent prices have fallen, and detached home values have soared in both large cities and rural towns across Canada, among other things.
The condo and rental markets are returning now that vaccines are widely available and things are beginning to open up, but home prices haven't budged at all in the wake of the vaccine epidemic.
Average Canadian home prices have continued to rise in this post-Pandy period, to the point where political parties are making previously unheard-of campaign promises (such as prohibiting foreign buyers and speculators) in a bid to win the forthcoming snap federal election on October 25th.
A significant part of the problem is that housing supply is not robust enough in most parts of the country (and especially not in Toronto or Vancouver) to meet demand — not just for homes, but for detached homes with specific features that buyers appear to value significantly more since COVID hit the market in 2009.
Since the outbreak of the pandemic began in early 2020, outdoor space has risen to the top of the list of desirable qualities for home purchasers.
Outdoor space and adequate room for an office are top on the list of things people are seeking when acquiring new homes in Canada, according to a new survey from the real estate brokerage and data firm.
While individuals have undoubtedly valued both of these aspects of a home for some time, a recent survey revealed that outdoor space (such as a yard, deck, or balcony) is now a "more desirable" characteristic of a home for them than it was before the epidemic hit the United States.
A total of 43% of the almost 1,500 Canadians who took part in a study between August 2 and August 11 stated the same thing about workplace space. With 55.4 per cent of respondents indicating it is more important now than it was before the pandemic, "access to delivery service" was also a top priority, according to the survey.
In the research, it is stated that "while many Canadians continue to work from home, residences with office space remain in strong demand — though at a lower rate than in February, perhaps signalling a restored interest in urban living."
According to the study findings, demand for office space in a home decreased by around 15.9 per cent between February and August, while demand for outdoor space decreased by 10.5 per cent during the same period.
As it was pointed out, "availability to delivery service continues to be a top concern, with 55.4 per cent of respondents stating that it is more important," while "it is down -8.10 per cent from February, potentially reflecting increased access to in-person shopping."
Ottawa's housing market continues to be the most active in Canada.
This may have been partly due to the imposition of a provincial foreign buyer tax aimed at cooling the Toronto and Vancouver property markets, which may have contributed to the greatest yearly increase in new house prices in Ottawa (+9.5 per cent) during February.
2nd and 3rd note Six months into the pandemic, strong home demand combined with limited supply persisted in Ottawa, with house prices increasing by 5.3 per cent between February and August, according to the Canadian Real Estate Association (Table 1).
According to the results of the RE/MAX Fall Market Outlook Report Survey, which was published in September, one-third (32 per cent) of Canadians no longer want to live in large urban areas and would prefer to live in a rural or suburban region. According to the results of the poll, 44 per cent of Canadians would prefer a home with more space for personal amenities, such as a pool, balcony, or a large yard, and 48 per cent would want to live in a more environmentally friendly neighbourhood. Note No. 4:
This has resulted in a movement in interest among homebuyers away from condominiums and toward single-family residences such as single-family homes, semi-detached homes, and townhomes. Furthermore, as the incidence of working from home has increased during the epidemic, transportation has been less of a deciding factor when considering where to buy a residential property. In turn, buyer interest in lower-priced suburban locations and cities within commuting distance of large urban centres has increased as a result of the current market conditions. As a result, new home prices in suburban regions have increased significantly since the outbreak of the epidemic.
Prices were rising in several marketplaces even before the outbreak of the pandemic, owing to a scarcity of supplies available for sale. The fact that new building projects have been put on hold since the outbreak of the flu has exacerbated the problem in some CMAs that have been surveyed in recent months. In recent months, increased construction costs as a result of new safety regulations and rising building material prices, combined with the present and continuing record-low mortgage rates, have all contributed to the increase in new home prices in the United States. This year's record-high lumber prices, according to homebuilders, will likely add $5,000 to $10,000 to the cost of a single-family home, according to estimates.
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