There has been a substantial surge in sales of 25% (Toronto) and 29% (Vancouver) during October-November when compared to last season.

There has been a noticeable increase in demand leading to soaring prices in both regions. The average selling price in Toronto has grown by 13.8% to $968,318 based on statistical research from the Toronto Regional Real Estate Board. It’s important to note, there has been a separation between different market segments with detached homes rising by 14.8% to $1,204,000 and condo prices shooting up by 0.7% to $622,122.

Vancouver’s real estate market has also seen the benchmark price rise by 6% to $1,045,000 based on the MLS Home Price Index.

The pandemic has caused a significant number of people to stay home over the past year causing them to re-evaluate their living arrangements. There have also been additional factors at play when it comes to the mounting home prices, which have ensured housing is still affordable relatively speaking.

New Homebuyers Leaning Towards Fixed Rate Mortgages 

In the current financial market, fixed rate mortgages are coming in at the same number as variable rate mortgages and sometimes even lower. This has resulted in homebuyers becoming eager to take advantage and locking in the fixed mortgage rate. 

Research done by BMO has shown 57% of all homebuyers find the fixed mortgage rate more attractive, while 30% of these individuals believe the pandemic is playing a role in their opinion.

The survey also states:

·       56% of all buyers are going to lean on their family and/or friends to make the initial down payment on their mortgage.

·       From those needing financial assistance…

·       25% are going to be need an additional $10,000-$50,000

·       While 11% are going to need more than $100,000 (25% for millennials)