Buying in a good location always pays off. You may pay a bit more for a premium location, for example a park, nice lot, good exposure, good neighbourhood, quiet street but this will pay off when you go and sell. Last week we sold a home in a great neighbourhood, two doors away from a park on a quiet street with good exposure. We had 6 offers and it sold $300,000 over list price. This applies to condos also – buy with good exposure, good floor, good layout and good neighbourhood it will always be easy to resell. It is true what they say – location, location, location.

Hot real estate outside Toronto. The demand for vacationing and or moving to areas outside of Toronto has been significant. Prince Edward County is one of the areas which has recently gained popularity. When you go there one can see why. Not only are there some great places to stay but what is interesting is its variety of things to do and visit. It has become somewhat of a foodie area – great restaurants, cheese places, cideries and wineries. Without the hills but with a lake it almost started reminding me of Cherlevoix/Baie St Paul area. The area around Waupoos where we stayed is one of the hot parts. Wellington has the renowned DRAKE DEVONSHIRE and some more known wineries like Norman Hardy but Waupoos has its own vibe. You can enjoy cider and great food overlooking a vineyard and Lake Ontario. Picton has some great restaurants. One can only imagine what this has done and will do to real estate prices.

Younger people who want to get into the market are getting in out of town or buying condos. Demand for condos has risen as house prices have become unaffordable. Demand for homes further from the city have also increased and so have prices. As a result, our cities will change.  The change in demographics will affect infrastructure, commercial real estate, and businesses. The world is changing in so many ways. Adapting to a new reality will be critical.

Lack of product is creating big bidding wars on high demand properties. There has been talk that the market has quieted down but it looks like that is only because supply is low. We have seen a number of properties sell for premium prices recently indicating that the fall could be very busy. Buyers have rested a bit and are ready to go. The market will shift again as many go back to work. Where one lives may be dictated by company policy on going back to the office. It looks like traffic may be heavy in the city if people have to go back and are less apt to take public transportation due to Covid. The pandemic has truly changed the world.

Rental market in the city is heating up. It’s back to bidding wars for city condos as people start heading back to in person work. The young employees who were working remotely and moved home now need a place to live in the city as employers are calling them back. The subway is not the best option as some companies actually do not want their employees going on the subway due to Covid risks. I can’t imagine the traffic if everyone starts driving downtown. We haven’t even started with a lift on immigration which would also bring an influx into the city.

Long lasting results from pandemic – will things ever return to “normal”? It was with great sadness that two businesses who I had a very close connection with recently decided to close their doors. Kingsway Conservatory where my son took music and cello for 12 years and which was a neighbourhood institution closed its doors and sold the building. Pandemic has changed demand and how music is being taught. The owner did not think it would return any time soon. Such a shame as it enriched my kids lives. The other business was Breathe yoga which was also a neighbourhood institution and helped so many in so many ways. My heart goes out to two great women who put their heart and souls into these businesses. Perhaps they will recreate in another place and another time. Good luck and all the best to all others with similar stories!

Summer lull does not mean that demand for real estate has declined. Demand is still there but people are tired from the pandemic and are now geared up for reopening. We think this is just a summer lull and by September it will be busy again. Pre-construction sales are hot hot hot. Prices are up for pre-construction and demand is high for good locations with investors hedging on prices going up. It definitely feels like the economy is set to boom.

Prices on building lots have increased substantially even though building costs have increased exponentially. Many builders and those building for themselves are hedging on the fact that building prices will go back down when pandemic is over. However there is that fear – what if they don’t. Building costs have been impossible to predict for over a year. Lack of supply has caused huge fluctuations particularly increases in costs of lumber. All contracts do not guarantee pricing which makes it difficult to budget. Huge delays across the board have been experienced including completion of condo projects. Time is money. Not sure how quickly we can recover.

What is a good real estate investment now. In Toronto, the return on investment on rental of any real estate remains low. One has to count on appreciation of the property to make money. This is somewhat risky but it appears that prices in Toronto have appreciated substantially through the years and will continue to do so. So hedging on price increase may not be that risky.  Buying condos on spec may become more popular again. Condos have taken a downturn during the pandemic but appear to have bounced back. The reopening of immigration has not begun and that may create a new demand.