What’s to Come in the New Year?
How do you feel about the future?
Many people out there would describe 2020 as a gruelling marathon, and although everyone hopes that 2021 will be better, it isn’t off to a great start.
Political turmoil south of the border combined with rising COVID-19 case counts in Ontario could give you a pessimistic feeling for the upcoming year. But this isn’t a point-of-view that we necessarily agree with at Regalway!
We know how dark things can seem in the middle of winter, but there are some exciting real estate trends that passive investors should be taking advantage of in the year ahead. Believe us; the real estate market is still robust, regardless of prior warnings. In fact, you might be surprised at some of the positive real estate trends that we see going forward into 2021!
We will remember 2020 forever because of COVID-19, but the reality is that the pandemic is far from over.
Countless people are still infected every day, and that number is only going up. Even though vaccinations are becoming available, there are fears that more contagious variants of COVD-19 might be spreading, further increasing infectivity.
All of these factors could contribute to lower home sales throughout the winter and spring of 2020. Typically, the wintertime is the low point in the year for home sales, but that’s not bad for investors with money to spend. Things could change very quickly!
Things Stabilize Later in the Year
The hope for 2021 is that we will slowly reach a state of normalcy as we get further away from 2020.
Hopefully, the massive shockwaves of COVID-19 will give way to the usual seasonal (and predictable) real estate cycles. For example, the real estate market essentially froze in March of 2020, only to pick up rapidly in the summer, creating a “delayed spring market.” With luck, the expected spring market will come as usual in 2021, as vaccinations increase and our society starts to shift back into pre-pandemic patterns.
A Boost in Mid-Size City Real Estate
Have you ever heard the term “18-hour cities?”
The phrase comes from the old saying about New York, “the city that never sleeps.” Unlike New York, and other major urban centres like Toronto, Montreal, and Vancouver, 18-hour cities are mid-sized urban centres that stay up late, but not quite all night!
Home sales in 18-hour cities, like Thunder Bay or even Ottawa, have been steadily increasing over the last few years. The pandemic solidified this real estate trend. While many people wish to live in a place that offers city-level amenities, they also don’t want to live in overcrowded areas with sky-high home and rental prices. This offers up a huge opportunity for real estate investors looking to pay more reasonable prices for homes.
Now that technology like Zoom allows people worldwide to work from just about anywhere, you can expect the trend of 18-hour cities to only gain popularity in the new year.
Technology Is Expected To Be One of The Leading Real Estate Trends of 2021
Speaking of technology, realtors stuck in the age of taking a few photos of a home will be left in the dust in 2021.
Because of social distancing and shutdown limitations, home showings and open houses decreased in popularity in 2020, only to be replaced by virtual tours. Realtors and other real estate professionals will need to invest in the technology required to offer potential buyers a way to see everything a home has to offer without actually needing to “see” it in person.
This tech could include drone footage, virtual tours, video walkthroughs, and much more.
Low Mortgage Rates
In 2020, the Bank of Canada kept the overnight lending rate at 0.25% for most of the year. Thankfully, they are planning on maintaining the course for 2021, or at least until the economic impact of COVID-19 has been fully absorbed.
This stability means that it’s the absolute perfect time to purchase a home, especially in 18-hour cities where the price of homes will only be getting more expensive over the next few years.
Being successful in this business means that you need to keep a close eye on current real estate trends to predict future ones. At Regalway, we have a track record of keeping our clients and passive investors fully informed about what’s happening in the market while also using our expertise to maximize their investment in real estate. If you want to take advantage of our “crystal ball,” we invite you to book a consultation with us today!
Regalway Homes | firstname.lastname@example.org | +1 844-977-2679