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December was another month of posting unprecedented increases in both sales volume and average sales price. With over 95,000 home sales, the GTA real estate market had its third strongest year on record in 2020. This represents an annual 8.4% increase over 2019 results despite coming to a near-standstill last spring. December 2020 sales were up a remarkable 65% from a year ago. Overall prices accelerated further, particularly in the detached home sector, under extremely tight demand-supply conditions. Although condo inventories continued to swell in December with active listings up 172% in the 416 and 159% in the GTA (explaining why condo prices softened through most of the year), condo sales numbers were impressive over this final month of 2020 indicating a bounceback as buyers recognize a potential opportunity and making condos perhaps the market segment to watch in 2021! It is important to note, that Oakville condo sales and prices remained much stronger than more urban centres and didn't really experience any of the same downturn.

As always, please don't hesitate to contact us should you have any questions about the market or would like a complementary updated pricing evaluation of your home.

Cheers!
Blair & Peter

Recently Sold Properties

List Price $2,499,000
List Price $2,995,000
List Price $1,699,500

Mortgage Predictions

Here are some insightful thoughts and predictions 🤞 from Mortgage Agent Steve Roode on what 2021 might hold...

The Bank of Canada will leave the overnight lending rate unchanged for the entire year
As the COVID-19 vaccine rolls out across the county, it will still take time to translate into a full economic recovery. As a result, The Bank will be “patient” in raising rates until pre-pandemic economic indicators are achieved. Therefore, the prime lending rate for variable-rate mortgages and HELOCs will remain unchanged.

Real estate prices (other than condos) will appreciate by 4 to 7%
A housing segment that’s shown no signs of slowing down in 2020 is detached homes, and this momentum is expected to continue into the new year, with the strongest growth in the suburbs around major urban centres. As such, we can expect that real estate prices, for all housing types other than condos, will appreciate between 4 to 7% (with Canadians working from home, the demand will continue to be strong for more space. Larger homes outside of the city centre will see the strongest demand).

Condo prices in downtown urban centres will fall in the first half of the year
As more university students learn remotely, the lack of immigration and the crackdown on Airbnb will all continue to weigh on condo prices in downtown urban centres in the first half of the year before stabilizing in the second half of 2021. When students return to campus and borders reopen for new Canadians, demand will return to the condo market. With home values surging, condominiums will be the only option for priced out first-time homebuyers. This prediction is in line with forecasts from other Canadian economists, with RBC Senior Economist Robert Hogue saying he expects condo prices to weaken in larger markets next year.

Fixed rates will be modestly higher at the end of 2021
As the vaccine rolls out across the country and there is optimism that the worst of the pandemic is behind us, Canadians can expect bond yields to rise which will cause mortgage providers to modestly increase fixed rates, particularly at the end of 2021. This comes as mortgage rates in the country remain low as a result of the Bank of Canada dropping its overnight rate amid the COVID-19 economic downturn.

There will be no new mortgage regulation introduced in 2021
Finally, as the government and regulators focus on the pandemic recovery, they will likely not introduce any new rules which would make it any harder for homebuyers to qualify for a mortgage — meaning that 2021 might be the perfect time to refinance your home or apply for a mortgage.

While predictions such as these help paint an optimistic outlook for what’s to come, just like the pandemic, the Canadian housing market remains largely unpredictable, and only time will tell how the year will actually pan out.





Steve Roode
Mortgage Agent

Tribe Financial Group 
steve@tribefinancial.com
647-323-1541
steveroode.ca
#M20000697
Proud Recipient of 
Royal LePage 2020
National Chairman's Club




Our "Under the Hood" Look at the Oakville Numbers



Median Sale Price

Dec 2020          
$1,547,500 (+28.7%)

Dec 2019          
$1,202,500

Dec 2020 YTD  
$1,351,000


Average Sale Price

Dec 2020
$1,743,611 (+28.3%) 

Dec 2019          
$1,358,242

Dec 2020 YTD  
$1,565,494


Number of Sales

Dec 2020         
195 (+98.9%) 

Dec 2019          
98

Dec 2020 YTD
3,087


Toronto Sales

Dec 2020 Average Sale Price  
$932,222 (+11.2%)

Dec 2020 Number of Sales
7,180 (+64.5%)

Dec 2020 Avg Listing Days on Market 24 (-17.2%)

Get In Touch

MACKEY & McCORMICK

Phone: 905.845.4267

EMAIL

Office Info

Royal LePage Real Estate Services

326 Lakeshore Road East  Oakville,  Ontario  L6J 1J6 

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