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.

We are in a lull for listings. It was a crazy spring. Many homes and condos were sold. We saw some big bidding wars for homes and some very high prices. The number of bids on properties seems to have gone down but the prices have really not. We are seeing some strong numbers come in on both houses and condos. As soon as we see more product (and we may just see more listings as pandemic settles), we anticipate a strong market to continue. Summer may be quite busy.

Many buyers are fed up with blind bidding but no one forces anyone to bid high or low. The house will sell for whatever the market will bear ie whatever the buyer wants to pay. Its stressful for buyers but its also stressful for sellers who often need the money to purchase something else. Or they have already purchased something else for a high number. As agents representing sellers we are under contract to get the most we can for them. We have to follow the rules but situations are not always clear cut. There is more to the sale than just the number. There is closing date, conditions and sometimes a feeling of comfort with the buyer. Most agents we deal with are ethical. Its stressful for listing agents as well. It’s definitely not an easy market for anyone these days. Having a good agent working for you is important.