The last year was an unexpected challenge for everyone. Coronavirus caught us by surprise and changed how we think and act. Canadian real estate market and every other industry have been affected and had to adapt and redefine themselves. The nation-wide lockdown in March last year harmed the market. As the pandemic spread, the market slowed, and the spring season saw a decline in sales instead of the usual rise. However, the Canadian housing bubble didn’t burst, contrary to some predictions. Instead, the market flourished in summer when the pent-up demand drove the sales high. With vaccines becoming more available and possible loosening of measures, the economy is picking up. While covid-19 is affecting Canadian housing in some ways, prospects and predictions are looking brighter.
And since the Internet has been our premium source of information for many years, various real estate guides also help people monitor the developments on the market. Here are some trends to expect in 2023 for the Canadian real estate market.
What has changed in the way the real estate market works?
With self-isolation and social distancing, the days of open houses with prospective buyers coming and going have become impossible. Instead, the real estate market had to adapt and change its practices. Staying healthy and safe has become a priority, both to sellers and buyers.
Fortunately, technology stepped in and enabled the homeowners and buyers to purchase properties in a risk-free manner. Various digital solutions such as virtual tours or even buying your home remotely ensure that all the participants stay safe and don’t lose opportunities due to the pandemic. While practices change and develop, one thing remains unchanged. People still need housing and make plans for their future.
The prices will continue to rise in Canada’s 18-hour-cities
When it comes to Canada’s largest cities, such as Toronto, Ottawa, etc., the prices and demand have been steadily rising for years. With the coming of the pandemic, the situation has come to a halt briefly. However, as people are adjusting to the new state of affairs, the market has been recovering. We can expect an increase in housing demand as well as an increase in home prices.
Single-family detached homes are becoming popular
More and more people work from home, and therefore, their priorities have changed. Proximity to your workplace used to be the driving condition when buying a property in the past. However, this is no longer the case.
Remote working options make it possible for people to look for more space and green areas instead of focusing on workplace closeness. For that reason, many homebuyers are looking for detached homes in suburban areas and on the outskirts of the city.
For example, in Toronto, there is a higher demand for spacious, affordable single-family homes. People want homes where they can have a home office and a yard where they can spend time outdoors while isolating. Therefore, it is likely to become a sellers’ market. If you’re one of these buyers, find a real estate expert you can truly rely on to help you find a perfect place for yourself and your family.
Downtown condos aren’t as much in demand
On the other hand, condominiums and short-term rentals are getting less popular due to more people moving back home during the pandemic. Most students are attending classes from home, and the level of immigration is currently on the decline. Prices are lower, and there is a greater number of listings than usual.
However, the real estate market experts think this is a temporary shift. The predictions are that rental resurgence will change trends in 2021 due to the process of vaccination. Demand for rentals is expected to grow, especially in the latter half of the year. So, if you’re willing to speculate, now might be the best time to invest in a beautiful trendy condo downtown.
Higher demand for homes outside of the big cities
On the other hand, city life has lost its appeal to many people due to the lack of social and cultural events. Since we can work and study from home, many people choose to relocate to more peaceful, quieter areas. Mid-size towns and rural areas are gaining popularity as people look for affordable homes further away from big city centers.
Therefore, if you’re one of these buyers looking for a larger home and a breath of fresh air in the country, it’s a perfect time to move. Of course, moving during a pandemic isn’t easy. If your goal is a simple and quick relocation to your new place, find a reliable moving company and make sure you follow all health measures.
In what other ways is covid-19 affecting Canadian housing?
Spring and fall are seasons when most homes are listed for sale. Most homebuyers plan their purchase and relocation during the warmer months. The national lockdown and stay-at-home orders that were implemented last March harmed home-sale rates last spring. In response, real estate agents have turned to new and creative solutions. Also, they introduced strict safety protocols to ensure the safety of all participants. Therefore, experts expect seasonal trends to return in 2023. This will lead to a steadier rate of home sales and regular seasonal cycles. For that reason, the prices are likely to fluctuate less, too.
Benefits for first-time buyers
Since unemployment has become a problem worldwide, many industries and companies have developed alternative methods. Working from home provided many people with new opportunities and ideas. Last March, low mortgage rates were introduced to keep the market calm. What’s more, they are expected to stay low in 2023. The goal was and still is to encourage first-time buyers. For many, this presents an ideal opportunity to enter the market and purchase a home for themselves.
So, while there are many ways in which covid-19 is affecting Canadian housing, the general outlook for 2023 is positive. Whether you’re interested in buying or selling, keep a close eye on these trends and see what the future brings.