What has a home become in 2020? Since the onset of Covid 19, the home has taken on many additional functions. Your home is now your office, your coffee shop, your day care center or school, your fitness center, and the true center of your universe. It has also become a great source of resource as equity continues to grow even during this pandemic.
Regardless of the Covid 19 outbreak, housing values continue to grow, as do sales. In September, housing data by the Canadian Real Estate Association (CREA) showed national home sales rose by 0.9% on a month-over-month basis. This growth continues to happen and will only help to drive the overall economy as we move towards recovery. The pent-up demand that we created at the start of Covid is still continuing, 6 and 7 months later.
The early 2020 real estate market saw a very hot time. Once covid hit some of those consumers paused while others didn’t. Those who held back due to Covid soon realized that the market didn’t slow down and quickly jumped back in, resulting in continued record sales. Sales activity year-over-year for September 2020 is up over 20,000 transactions, and this growth continues to foster our overall pricing growth.
Not only have sales seen an increase, but so has pricing. The value of homes continues to grow. Markets across Ontario have seen as much as 10 to 23 percent increase year-over-year. The GTA saw an increase of around 10%, while the Bancroft area saw a growth of 22 to 23 percent. This provides for great investment returns depending on the area you are willing to invest in. As a reminder that return is on the overall value and not just the cash you have invested.
The consensus is that the market remains strong for sellers, investors and buyers. If pricing keeps going up, no one loses…and there is no sign of that happening any time soon!