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A very common question in the diverse world of Real Estate is what are the most common things you need knowing. These are in terms of key facts in 2021 before you purchase a home? Real estate in 2021 in Canada might not be the same as it has been in past especially Pre-Pandemic era. However, there are many other factors that as a common buyer you need to know. Especially, regards to home buying, in Canada, rather than selling strategies. According to most realtors, the season of winter is the sleepiest season for the Real estate markets.

According to a Toronto based Real Estate agent regards to buying homes. The housing markets were competitive before, but only in the first few weeks of January. A representative agent of Bosley Real Estate claims that he has witnessed bidding wars with up to 70 offers in the GTA. This is not exactly the slowdown that experts predicted at the start of this year. Neither at the start of COVID-19, not also the slowdown exactly that experts predicted could happen it is. Here is what the experts want you to know about the Canada’s Real Estate markets in the year 2021.

WHAT CAN HAPPEN IN CANADA’S REAL ESTATE MARKETS IN 2021?

This is despite the pandemic COVID-19 that took place last year, the real estate markets took off. A takeoff that happened when real estate was declared as a very essential service, as most population was working from their cosy homes and housing comforts was the key factor consistently on the rise. Hence, the desire and want of Canadians for more relaxation space will keep strengthening the real estate markets in 2021. A record high demand for homes and a relatively low supplies in cities that includes Toronto and Vancouver are the factors that are driving the prices up and up.

The question now rises, how up? As in the year 2020, if we calculate the average Canadian house price, stats say a 17% rise in prices year over year. According to the realtor’s predictions in 2021, the seller’s markets will continue forecasting increase in prices b/w 4% to 6%. The number of homes put on sale is another key factor that needs to be ascertained before buying a home.

VARIATIONS IN CANADA’S MORTGAGE RATES & TORONTO’S CONDO MARKETS:

If you are a homeowner already this could be the best time to break your mortgage. This breaking is for getting a lower interest rates before they start to climb up again. According to the Royal Bank of Canada, they expect that interest rates in 2021 will stay at a low. However, we may also see that the long term rates sharing will start to creep slightly higher. Even in this scenario, the housing markets of Canada have a tendency and capability that shuts many people out of the markets.

2020 was a tough year relatively for Canadian housing markets & mortgage rates, ironically due to the pandemic. The people who easily transferred to WFH setups were the people who could afford to buy a home in 2020. However, the most suffered sectors for e.g. Tourism industry are the most likely ones to be shut out. Hence, according to an urban planner & director of The City Program at the Simon Fraser Uni. A huge population in 2021 shall be facing the challenges in the housing sectors.

However, in Toronto’s condo markets which dipped 8.7% last October will slowly be coming back to Pre-COVID prices. This sincerely means. If you are thinking to buy one, you might have a deal. Especially, if you get lucky as there is still quite a bit of inventory on the market.

The real estate markets in the year 2021 in Canada have a huge dependency on two major factors. These factors includes immigration policies and the results of the previous year. It is imperative of the fact that these markets are expected to behave rationally, however, there are certain factors that will effects its behaviours & past performances. These effects are due to the un-expected performances in 2020 mainly outlines the reasons being the pandemic. However, experts believe that it is better to avoid investing in Real Estate markets of Toronto. More importantly they think that due to COVID-19 pandemic effects that are still evident. This is especially true for the commercial sector and variances in commercial properties in Toronto.

Favoured for the immigration purposes by most migrants are the cities like Toronto and Vancouver. Therefore, the immigration targets of around 400K in the next year, i.e. 2021 can be a huge positive for the real estate markets to boost to their normal behaviours. However, still from the investment point of view it is an expected downturn regards to the commercial sector in Canada. The planned rise in immigration levels in 2021, i.e. 400,000 applicants is all due to the adverse effects of pandemic COVID-19. Vitally, to a huge extent as the number of entrants coming to Canada was reduced considerably.

REAL ESTATE OPPORTUNITIES 2021- AN ANALYSIS OF THE ACTIVITIES:   

For the current recovery to take place at a rapid and constant pace. Chosen as the pioneer for its flexible capacities and shining image is the real estate sector Canada. A period that will take at least 2 years’ time to reach back to the normal shining state. Therefore, the activity is strong and reflects the pent up demand and also the increased domestic investment activity.

The opportunity in real estate is evident through a research poll that says 35% of the respondents of the homeowners are considering to buy an additional unit. The reasons being lower interest rates and the market being at a far softer side. Seen as a bright and opportune moment for investors due to lower interest rates. Ironically, an opportunity that the investors have been waiting for since a long time, i.e. winter 2019. Real estate experts in Toronto believes that the market will stay softer for at least 2-3 months.

Similarly, the housing markets will also feel the impacts and these impacts are distinctively associated with the mortgage payments. Hence, having a huge negative impact on the overall housing activity as well. According to another market expert for Mortgages and Real estate Toronto, overall there will be strong two to three months followed by some softening in the activity that will start during late fall and winter seasons. Stronger than normal are the expectancy for the spring season to behave than normal. COVID-19, the pandemic’s second wave is the main reason for the seasonal variations in market behaviours in 2021. Furthermore, the way the pandemic effects will diffuse from the property and real estate sector.

HOW IS COVID-19 IMPACTING THE ECONOMY & THE REAL ESTATE?  

As many sectors have been affected because of impacts of COVID-19, so is the real estate and business sector. Hotel business, bar business and the restaurant business are the three where the effects are seen mostly. This is primarily along with the retail sector of Canada being most affected. Hence, there have been mass casualties as well that have increased the fear of life and business activities. However, the question rises that will the effects be short term, medium term or long term. As the market behaviours fluctuate from rise and falls. In the real estate sector the effects are medium-term. It’s important for the investors to make smart strategic plans, as well as the policy makers in the immigration industry in Canada.

Over the term of three to five years the Toronto markets being the most prominent ones shall have a great future. A number of new hotels opening which means more five-star and four-star brands. On the commercial side in Toronto and suburbs there are new office buildings on the verge of completion. Furthermore, companies from Europe and Asia are investing heavily in the Real Estate commercial sector in Toronto. As the top city of North America and the city of future in five years. More obviously, Toronto is expected to replace New York, as the No. 1 city in North Americas. Not only in terms of real estate at the commercial side, but in the housing sector as well. The year 2021 is the year of recovery for affected Canada’s real estate markets.

The Real Estate sector in Canada has been suffering immensely due to the adverse effects of COVID-19 on the prestigious & high profit giving sector. However, it is much predicted that with the introduction of the COVID-19 vaccine many things will become positive & gather themselves towards stability & back to normal. Apart from the lifestyle of people living in Canada it has a lot to do with the real estate behaviours & the interest rates involved in Real Estate Canada.

Vaccine will help in an increase in the amount of immigration numbers. The expectancy in the rise in numbers is certain while overcoming impacts of COVID-19. 400,000 annually is the expected rise in the number of immigration cases to Canada. These are figures in just a period of one year. According to Canadian immigration services, the figures are huge as planned. Ironically, they think that this increase is a necessity to balance the numbers. These are figures of migrants in Canada in next two to three years.

Reduction in migrations and figures getting to a halt is mainly due to COVID-19, the pandemic. It was mainly due to the lock downs and economy facing shut downs. Furthermore, it also caused sudden decline in many sectors. As far as real estate sector is concerned, it will definitely be boosted with the introduction of vaccine. Hence, it can cause an automatic increase in the migration numbers. It will also boost the rental market of the Canadian Real Estate. Hence, as new buyers will act as a catalyst to the current situation.

POSITIVE IMPACTS OF MIGRATIONS TO CANADA:

As according to figures and statistics new comers coming to Canada accounts for more than a fifth of the housing markets. This will be helping boost real estate in Ontario, British Columbia & Quebec according to a survey. According to the Real Estate stats & figures immigrants buy 21% of houses and they may purchase 680,000 homes during the next five years if the level of migrations are maintained in Canada. This is highly likely as most Real Estate experts believe that it will rise instead of getting towards decline.

This is not only a positive for the real estate, it is good for the Canadian economic growth. Experts truly believe that newcomers to Canada are vital to the health of their National Real Estate market. They will boost virtually all the interconnected sectors that are elementary for the growth of Canada. Newcomers are not only investing in the Canadian real Estate, they are also investing in their family’s future.

There has been seen variations in two major cities in Canada. Hence, as prices have fallen in Vancouver and the increases slowed in Toronto. The buying activity rose another 0.6% in September to 512,000 units. Amazingly, i.e. the highest level in 21 months. Furthermore, a huge 6.6% above the 10 year average. These are figures according to the Canadian Real Estate Association. The Toronto Real Estate is one of the key contributors to the Canadian Real Estate markets. They reported that Condo sales in the third quarter rose to 11.1% as compared to the same period last year.

With the introduction of COVID-19 vaccine health will be boosted in regions affected by the pandemic. Therefore, automatically the contributions of new comers in Canada will be a huge boost towards the Canadian Economy.

Is it Worthwhile buying a vacation property is a major question that everyone needs to ask. Especially, after the effects of the Pandemic, COVID-19 in the Real Estate sector in Canada. With family members & loved ones, considered as good time spending as vacations. However, the question that needs to be asked is, IS IT A GOOD DEAL?

The benefits of owning your own vacation property in form of a small cottage, or a nicely located home. Hence, it is always a beneficial idea in terms of enjoying the benefits. It will definitely help in providing a quick weekend charge for the next week. For family get-to-gathers, and relaxations, the holidays are needed for a busy & hectic schedule. Something that you can’t miss or ignore, as taken from an emotional point of view. However, what needs to be pondered are the financial implications, i.e. from a financial point of view.

As an example, we can presume that the Purchase price is $500,000. It doesn’t matter you use cash, or mortgage/ home equity, or a line of credit. Furthermore, a combination of payments, there are some other costs that need to be considered. If for instance, you have purchased it on money that you borrowed, despite the current mortgage rates being 2%. Therefore, in the long run, the interest rates are most likely to go higher. On a property that’s worth $500,000 there will be an initial cost, i.e. 4% or $20,000.

THE FINANCIAL PERSPECTIVES:

The financial perspective in this regard says that it might not be a good idea to invest. Hence, in times of the on-going financial crisis. A sympathetic situation that relates heavily to COVID-19. The costs can be even higher for those properties or cottages that are older. Hence, this includes a property with amenities and high fees.

What’s the Return on Investment for owning such a property, which can also be called as a cottage or an ideally located home far from the busy city? If we keep in mind the Bank of Canada’s 2% inflation target, arguments say a more reasonable long-term growth for real estate is 2% to 4%. The vacation property purchase might not be the best choice if financially manipulated and calculated. The best answer that the buyer must ask himself or herself is that can you rent a comparable property for less than $20,000 per year. Apart from other reasons, some Non-financial reasons are also associated with the add-on. These are associated with the purchase of the vacation property. Hence, these reasons are also related to leisure, luxury, and entertainment.

USING THE PROPERTY AS RENTAL PROPERTY:

Renting the property after buying it for some future income can reduce the net cost automatically. Hence, it can make the purchase more fiscally responsible. These are the tax implications if you do this, termed as a ‘Bad financial decision’.

Secondly, the rental income is taxable, and on the other hand, the renting out of a vacation property will also result in providing some tax deductions. Ironically, these deductions are based on the proportion of the year that the property is available for rent. Even, if you rent it for a period of six months after using it for six months then half of your eligible expenses will be tax-deductible. Hence, the decision is not worthwhile from a financial perspective and can result in losses that can damage your long term financial stability.

IS IT A GOOD DECISION?

Therefore, it’s best to do some basic maths involved, using your own numbers try to figure out the net cost of the property. Also, if you rent something comparable for less, only consider the option as the best one if there is affordability without compromising on other financial goals. Your basic and sustainable financial goals mustn’t hurt your decision to buy a vacation property, as your Pay-back period can considerably rise for such a non-lucrative investment.

However, when the financial crisis is over, and tourism rises, the decision can turn out to be a good one. This also depends on your mortgage term, costs, & percentage.

The Real estate sector in Canada has been currently undergoing some serious impacts. These are because of the latest developments from the COVID-19 scenario. These impacts are related to the pricing strategies in the real estate and changes in Govt.’s policies. In the midst of the spread of the COVID-19 pandemic, there are some positives that have been figured out.

There are millions of Canadians in the non-essential workforce that are working from home. For visiting the business & public places, there have been restrictions & bans imposed by the Govt. of Canada.

THE IMPACTS ON REAL ESTATE OF WORK FROM HOME:

Working from home has outlaid significant impacts on the real estate sector Canada in just a matter of few months. This is largely because of the reason that most people in Canada are restricted to their homes & the property prices have raised especially in the commercial sector. The real estate industry in particular is a prime example of the current circumstances, and the need is to take drastic measures to adapt to scenarios of ‘Business as Usual’. A term that determines that how the businesses must take place under normal circumstances. There are also some key changes in the way agents operate in conditions of work from home. This is also because it is an uncertainty that how the markets will perform in future.

According to the experts, as they have seen the most uncertain times. It’s hard to make predictions and evaluations like before. The question is “What can buyers and sellers expect from the markets during these most unpredictable times?”

THE LONG TERM EFFECTS:

How long will it take for the market to bounce back? A question that needs to be asked by investors in the Real estate business. It can take a year, two year or three years, that’s not the question, however, what’s concerning is how long these effects will damage Canadian real estate sector. In fact, the reality says that the fundamentals of the market i.e. particularly in the GTA and other major urban centers don’t change.

What’s more affected is the attitude of the buyers in the Real Estate business which cannot be affirmative unless things get better. The pessimist attitude means buyers in the Real estate markets are looking for things to get ‘Back to normal.’

FEARS OF A GLOBAL RECESSION:

Having the fears of a global recession is why most people’s attitudes have changed towards investments in the Real estate sector. A global recession just like something that happened in 2008-09 in Canada and impacted the Real estate sector is the fear of most people. This financial recession has not only impacted the attitudes, however, most interestingly it’s hard to predict a property performance. Therefore, the levels of risk associated are more than what they could have been under normal circumstances.

LIMITATIONS FOR CONSUMERS IN THE REAL ESTATE:

There are limitations for consumers in the real estate sector, and these limitations are in form of pricing strategies. The change in consumer behaviors means changing trends of the real estate market is affecting the consumer’s psychology.

Other limitations include the purchase of cottages for holidays, limitations imposed on rental property due to fluctuations in the purchase price. The consumer’s limitations also includes property predictions, as they are hard to make in these current times. They are unable to determine and evaluate the risks involved in selling and buying especially.

POSITIVE CHANGES IN GOVT’s POLICIES- CECRA:

The changes in Govt.’s policies are mostly linked up with COVID-19, the current pandemic for business owners. It has proved to be something positive after seeing so many lows because of the current pandemic. CECRA or Canadian Emergency Commercial Rent Assistance, provides relief for small businesses that are experiencing financial hardships in paying for their business property rent. A huge step from the Govt. to stabilise the situation in times of the pandemic, COVID-19. The program offered by the Govt. of Canada is also valid for those who have entered or will enter into a rent reduction agreement. Rent reduction, yet another positives amongst the Govt. policies is helping people reduce their rent payments through 75% payment re-reimbursements from the Canadian Govt. scheme known as CECRA.

The number of vacant homes i.e. deserted luxury houses have been seen on the rise. This is across the whole of Canada as according to real estate analysts. According to demographics statistics Canada from 2006 to 2016, a period of 10 years. Canada’s empty homes are 8.7% of the market. This has increased from 8.4% in 2006. Hence, this is huge as compared to the US markets, a country higher in population and population density. In the United States, the vacancy rate never climbed more than 2.8 % during the same 10 year period.

Canada’s real estate problems are rising every day. High vacancy rates are one of the problems that have been rising since the last few years. It is primarily because of the affordability issues that have been on the rise. The vacancy arises after houses are taken as rentals and then left vacant. Other culprits are investor’s speculation and short term rentals i.e. 6 months to 1-year contracts behind high vacancy rates. Provinces British Columbia and Ontario are the ones where these trends have been observed. The two cities precisely being Vancouver and Toronto, especially Toronto. The main reason is as it is one of the most expensive cities in terms of real estate prices.

According to the report, almost 66K homes are sitting empty in Toronto alone. Furthermore, approximately 64K homes are vacant in Montreal, Calgary. The capital city Ottawa and capital of Alberta i.e. Edmonton each have at least 20K vacant properties. A key city of Province British Columbia, i.e. Vancouver has almost 25K vacant homes.

FINDING A SOLUTION TO VACANCY PROBLEMS:

 The main reason behind the rising vacancy rates is market fluctuations and short term rentals as discussed above. A tax system on an empty property can easily bring reductions in the rising number of vacant properties. For reductions in vacancy rates, Vancouver City introduced tax practice in 2018. Since, the application of the vacancy tax in Vancouver, British Columbia. It resulted in a profitability margin of $30 million in the first year.

Vacant property is a liability for a Govt. and not a good scenario for real estate professionals and the community. It also affects the population count, the census and also the population density figures. These are figures which are already too low for a country of the size of Canada. It can also bring safety issues in the regional community. Ironically, a primary issue in Canada, especially where migrant’s population is on a high.

HOUSING ISSUES IN TORONTO- ONTARIO:

In Toronto, the percentage of vacant homes is 66K. These are the highest in Canada, and the main reason behind that is a rapid rise in prices. Toronto’s figures for rental property changed very fast from 2017 to 2019. Therefore, bringing Toronto in the list of one of the most expensive places to live in North America.

However, Toronto had a decrease in vacancy rates after 2016, citing -4.7% over the span of a decade. In 2017, the Toronto City Council came up with the suggestion of vacant home taxes, similar to that applied in Vancouver city in 2018. This was mainly to address the housing affordability crisis and bring useful reductions in vacant property in Ontario’s Capital city. The city chose to do a public consultation on the decision of the application of vacant home taxes. The city’s council has imposed a 4% MAT tax, however, the decision is still pending. MAT stands for Municipal Accommodation Tax and was applied to the hotels in Toronto, starting April 2018. It also included short term contracted rentals after 1^st June 2018.

Apart from the MAT the Ontario Govt. has also designed a 16-point plan to address housing issues in Ontario. This includes the capital’s real estate affordability and problems on the rise because of vacant properties.

HOUSING FORECASTS IN CANADA FOR THE NEXT DECADE:

It is a forecast that prices shall slow down gradually. This is according to the housing stats from 2018 to 2020. These are forecasts for the next 10 years especially in Toronto and Vancouver, the affordability issues shall be addressed via taxes similar to MAT and Vacancy tax.

This is a message especially for the owners to make sure property is not left vacant keeping in mind the legal considerations. This all is also highly dependent on the demographics in the next 10 years according to a report from the CMHC, i.e. Canada’s Mortgage & Housing Corporations. CMHC is an organization that addresses the housing and mortgage issues in Canada and also deals with figures for future trends and market behaviors.

In Ontario only according to stats fourteen cities experienced a significant drop in vacancy rates. The report of 2016 states that 16 of the 52 largest cities in Ontario province only achieved a vacancy rate of 3% only as of 2016. This is good news for the affordability of homes in Ontario for rentals and buying both.

Canadian housing markets are highly dependent on Mortgage, mortgage term, and mortgage insurance. This is vital as part of their real estate and property environment. In current times of the pandemic and its most common sufferings. Many experts have given the verdict that the old reliable five-year plan may not be the ideal choice. This is because of the effects of a pandemic on the real estate sector in Canada. Hence, especially impacting Ontario and British Columbia. How to look out for the best deal with lower rates?

According to many Mortgage experts and property research analysts in the era of COVID-19. Standards may not be the best option as the deviation from the standard is a necessity of the current hour. This is financially true especially with the lenders offering fixed rates as low as 1.99%. This is the best time of re-examining the assumptions. Furthermore, how to choose the best term for today and into the future.

WHAT IS A MORTGAGE TERM?   

‘Mortgages’ and ‘Mortgage Insurance’ are common terms regards to the Canadian economy and real estate sector influences. Most of the property in Canada is either taken on a mortgage or is rented. Hence, the period is known as ‘Fixed Term’ in case of property bought on the mortgage. In a deal with a private mortgage insurance corp., a credit union, a major bank, or a lender. It is formally in form of a legitimate deal between the two parties. A length of time usually taken in years during which the parameters of a mortgage has its legal effects is mortgage term.

‘Amortisation’ is yet another key term from the mortgage and insurance industry. It is the total number of years that a consumer will take to pay off its mortgage. This is in a deal with a financial instrument or an organization. Lifetime term is what it is known as if the person’s age is above 40-45 years. This is mainly as well due to the length of the term which is high. This is also because the most common term is of 25 years, especially in Canada. Connected with ‘Life Expectancy’ i.e. A mathematical measure of the average time an organism is expected to live. Hence, the result is based on demographics, age, and year of birth. Hence, over this span of time the consumer shall be spending multiple terms. This is with various lenders or negotiations shall take place with the same lender.

Similar to how a loan works out, hence automatically, lengthier terms come with higher rates and vice versa. This is primarily because of the fact that the consumer is protecting himself. Protection from big interest rates hikes i.e. for a longer time period. The length of time is a critical period in determining the solvency concerned with the mortgage.

SOLUTION FOR HIGHER RATES:

There are many solutions that are related to higher rates. Generally speaking, if the rates are low the best option is to choose a longer-term for bigger sustainability options. Hence, alternatively when the rates are high needs shifting to a shorter term. Hence, this is for the sake of renewals to come up in time. This is mainly for the purpose of taking advantage of low rates once they come around again.

The real estate market in Canada since the arrival of COVID-19 has reacted differently. This is similar to many other sectors where the effects have been evident. Divided into two periods are the effects of COVID-19 on the real estate. The divisions are into long-term effects and short-term effects of the period affected by COVID-19. Talking into a broader context, this global pandemic will be changing the real estate sector in Canada. This is for at least a short term interval.

Evidently in all provinces in Canada, the effects of COVID-19 have affected the corporate world with business shutdowns. Hence, resulting in most people working from home. The increase in remote working operations is not the only answer though. There has been social distancing in public places and following other mandatory measures. All these are precautions associated with COVID-19. The question arises of how it has affected the Real Estate markets in Canada.

The trends of the past few months have shown signs in the real estate sector. Ironically, due to limitations in budget real estate prices have considerably fluctuated up and down with larger intensities. The term ‘Business as Usual’ is highly affected as usually what happens has been impacted due to change in circumstances. These change in circumstances has risen due to the impacts of COVID-19 virtually on the whole business community. As it is highly unclear in this pandemic situation that how the market will behave. The brokerages and real estate agents have started to operate differently with ambiguity on how the markets shall be performing.

SHORT-TERM EFFECTS ON THE CANADIAN REAL ESTATE:

As of March 11th, WHO or World Health Organisation made a declaration. Hence, the declaration clearly stated COVID-19 being a global pandemic. At the same time stats were released from Canadian Real Estate Association, i.e. CREA. Stats showed month of February was particularly hot for year-over-year sales that rose 27% nationwide. Also, an indication of the fact that the busy spring buying season had started early. Also, performances showed incredible results for both Toronto and Vancouver i.e. 45.6% and 44.9% rise in sales transactions for the cities.

Despite all the post-pandemic results variances, we can also expect to see market activity slow down in the sector. Hence, buyers and sellers may reach a stalemate. Sellers will show hesitancy in accepting lower offers while the buyers on the other hand will hold off their home purchase. This is all amid uncertain health and economic conditions rising due to the results of COVID-19. Although these can be termed as short term effects of the pandemic. However, these can be influence generators for long term effects at the same time. The effects of the pandemic can be balanced concurrently as there are some buyers and sellers in the real estate sector who can’t avoid their buying or selling.

There are still those who need to sell and buy right now that is for the sake of relocation for work, or those who have already sold their home pre-pandemic and are looking for another home. Even due to the effects of COVID-19, some buyers and sellers can’t change their decisions. These are known as “Highly Motivated” buyers and sellers. This is mainly as their life is already under the influence of personal circumstances for e.g.: Divorce, relocation due to work, or downsizing or up-sizing quickly.

LONG TERM EFFECTS ON THE CANADIAN REAL ESTATE:

What’s harder to predict is how COVID-19 will continue to be a threat i.e. along with its impacts on individuals, businesses, and the real estate sector. It’s hard to predict because COVID-19 is still not over yet. Most importantly, how COVID-19 has changed the circumstances is a huge question mark itself.

As an example, the case study of the Ontario real estate market is the best answer. While the circumstances are wildly different, the last time the market saw a change was in the spring of 2017. The effects of that cool down in the sector lasted into the second half of 2019 which means at least two years period. However, the effects of the two year period means higher effects of pandemic COVID-19. Since it started in March 2020 and the markets are still under the negative influence of the pandemic.

However, the reality states that the fundamentals of the market i.e. particularly in the GTA and other major urban centers don’t change. Also due to the limited inventory available and also combined with the growth of the population in Ontario’s big cities like Toronto, we can expect a quick recovery. Once the financial markets get into stability from the effects of COVID-19. Similarly, recovery can be much expected once the health risks are mitigated. Bringing stability to the sector after COVID-19 is itself a high necessity.

Toronto is the Canadian hub of commerce, industries, global trade, communications, academics, transport, real estate and finance. The growth Toronto has seen especially in the last 30 years has been phenomenal. This is due to the rise in infrastructure and immigrations in Toronto city. It has been the Centre point for people or the point of attraction even though its an expensive city. This has been the scenario for most people coming to Canada for studies and work purposes. Even people from nearby Towns and smaller cities e.g. Brampton visit Toronto for fun or usually work in Toronto while living in suburbs. They prefer living in the suburbs due to the expensive property in the city and downtown Toronto.

The real estate since many years has shown growth with commercial and private property rocketing sky high. Toronto’s real estate markets have proved to be one of the most exciting markets for investors. Saw a very sharp spike, or one can call it a twist in the tail. Happened in 2016-17, saw buyers getting priced out of the market. The city continues to keep rebounding and not really seeing the bubble burst.

As 2018 arrived, the exuberant city saw dips and a huge slowdown in purchases. Especially in the early months highly affecting the previous year’s figures. As spring came, it saw the natural rhythm of the real estate market return back. Known as the most overvalued cities in the world, Toronto is expensive in terms of affordability in real estate.  There are many factors and reasons that have contributed a huge deal to the city’s high housing prices.

2017- A PAST REVIEW OF THE MARKET BEHAVIOURS:

While we take ourselves in the past, e.g. 3 years back. The real estate market at that time was beyond crazy. A mega fluctuation from 2016, saw a huge 33% increase in the average sales price. Similarly, the average cost of a detached home, luxurious and excellent for living, reached a startling $1.6 million in Toronto’s downtown’s most desirable neighbourhoods. For future profitability margins being on a high side. The suitability for new investors was definitely raised with huge significance.

Downtown Toronto is the limitation for some stats. These are similar results from 2017 data. However, but by the year moved forward reached the Toronto suburbs as well. Despite the expensive prices, amazingly the demands continued to rise and hence the number of listings declined.

WHAT ARE THE ‘2020’ PRICE DRIVERS?:

The difference that was significantly seen as compared from 2020 to 2019 were in the low rise market segments. This trend was highly observed by real estate experts with regards to the detached houses. Accordingly, the buyers who were on the sidelines with the reason being OSFI Mortgage stress test are returning back to the market after a positive sales growth in the detached segment.

Hence as compared to 2019, in 2020 the market conditions got a bit tighter and that truly resulted in stronger selling prices. As according to the TRREB President Mr Collins, there are three factors that are underpinning competition between the buyers. These are steady population growth, low unemployment and lower borrowing costs. Hence, these factors are resulting in the price increases and have been a huge contribution to the real estate markets in 2020.

LOWER INTEREST RATES:

Lower interest rates are a positive factor for the consumers, however, there are questions that need to be asked about the real estate markets. More interest rate cuts are expected to happen due to the weakening Canadian economy. This should definitely make more openings into the Toronto real estate markets for the buyers. More buyers mean lesser inventory. Ironically, the lower rates are not good to the markets if you are a buyer.

FUTURE HOUSING STRATEGIES FOR TORONTO:

Finally, we can make assumptions that the Toronto housing price growth rate will continue as long as the interest rates remain low. More businesses move to Toronto, from other cities and the suburbs, hence, providing more jobs and opportunities to work. A higher number of amateur investors continue to buy up Condos and all the above factors play their roles in terms of the inventory. The role is highly important for results, i.e. to keep inventory levels low.

There are serious challenges in some housing markets and authorities are pushing for housing affordability for as well as an increase in housing supply. This is both for buyers and renters. However, there is still a comprehensive national housing strategy that needs to be done for a positive change.

Buying or Selling a Real Estate property anywhere in the world is one of the most important decisions in one’s life. The decision is highly important whether it’s for yourself or for investment purposes. In my last 15 years of this profession i.e. a rather long time. I have always joked with my buyers/clients regarding property matters. For example, after selecting your spouse, buying a property is the next biggest decision in your life.

There are many factors to be considered when looking at property: Location; Value; Future Projection; Market analysis; Growth on your investment; Taxes; Highways; Schools; Mortgage; Fit for your family needs;

Closing cost; Transition; Inspection; Rental or lease items attached to the property; and finally during the process, you and your family’s privacy and confidentiality.

So, do you want to put such a big decision in the hands of an immature, inexperienced and unprofessional individual? I have seen customers devastated at the hands of Real Estate professionals who are not doing their job properly.

Unfortunately, it seems like every other person gets their Real Estate License for quick money but they lack dedication, knowledge and hard work. Nowadays, you will find many families with one or two realtors in the house. Some of them have other jobs like driving a taxi, owning a convenience store, running their own accounting office, appearing on radio shows or are mortgage brokers. People find quick cash in these fields and do a few deals in a year just to make some extra cash. They lack education, experience, and professionalism. Real estate has become a heaven for a part-time business.

What a prospective buyer or seller should do? Look for the following attributes before finalizing a Real Estate Professional:

1. Experience in the Industry

You can count experience in banking, lending and financial advisor towards this industry.

2. Commission & Fees

If they are giving away too much of their commission means they will not bring added value to you. They are hungry for your business. Any commission works for them. I have seen ADS for $1,000 a listing. They will not do a proper job promoting and will cut costs on required expenses like Flyers, advertising, traveling and open houses, etc. A good realtor will ask for their fair share of commission because he/she will put their full experience and efforts into your transaction.

3. Working Full time or not?

If the realtor is not full time, they will be doing a poor job missing on opportunities of prospective buyers or showings. They will try to accommodate you in the time they are free, instead of your free time. They will become experts in making excuses, missing important calls or appointments. Priorities will differ from a part-time real estate agent vs. a full-time real estate agent.

4. Specialization

Check your Realtor’s credentials and their area of expertise. A west-end realtor will have trouble selling your house in the east end. They will not be effective in terms of knowledge, comparable properties, and negotiations. Also, if a realtor’s area of expertise is in pre-construction, they will do poorly in resale. They will not do all the hard work in showings, they will be weak in negotiations, open houses and vice versa. If the Realtor’s expertise is only in resale, they will not be able to bring you exclusive benefits plus you could miss out on promotional extras from the builder as well. They will not be able to negotiate the things that usually get missed or swept under the rug from the builder, For e.g. Assignment clause, Lease during Occupancy and capping on development charges in the contract which will cost you immensely at the time of closing.

5. Honesty, Ethics, and Conduct

Some of the most important factors in selecting a real estate professional are Trust, Honesty, Transparency, Ethics and how they go about conducting business. Due to the amount of money and commission involved, a realtor with poor credentials can compromise your interest in their smaller gains.

6. Keeping the client’s privacy and confidentiality

During the real estate transaction, a realtor comes very close to any family; I have seen families fighting, arguing and crying in my presence. Clients discuss financial issues, family issues and matters related to children and schools in my presence. Their disputes, their preferences, their weaknesses, and their strengths become mine as well. During and/or after the transaction, a client deserves privacy and confidentiality. Any unprofessional and inexperienced realtor can do more harm than good to the client.

7. Financial Advice

A house purchase can become very emotional for the client which is why all clients want the best property for themselves. One can get easily carried away when it comes to selecting a property. A good professional real estate agent will always keep their and their client’s eyes on the ball. What the client can and/or can’t afford will become a factor in their decision and the agent will advise according to the client’s budget. A professional realtor will get their client a qualified mortgage so that the client will not be stuck in a deal or the possibility of losing their deposit.

There can be many other factors when choosing a real estate agent but in conclusion, my advice is to always choose an experienced and professional realtor. Why do we always select the best doctors, lawyers, dentists, and financial advisors or tourist operators; because we want the best for ourselves? You should not be compromising on one of the most important transactions/decisions in your lives when selecting a real estate agent!

Professional and Educational Background: B.Sc. Electrical Engineer, Real Estate Broker, Financial Advisor, IQCS Certified Lead Auditor & Consultant for ISO Management and Environmental Standards, Certified Total Quality Manager.

Professional Experience and Affiliations: Royal Le-Page Exceptional, Royal Brokers, American Express Bank of Canada, Budget Rent a Car, Moody’s, SGS, PIQC.

Making money in the Real Estate requires an immense amount of market trends analysis. On top of this, it also requires the focus of the variable markets. A huge part of the residential property income comes from the ‘rented properties’. The rental income in Canadian Housing markets and the prices of buying a home via mortgages have fluctuated since 2016. These fluctuations i.e. the immediate rises and falls in prices are largely due to more than one reasons. The forecasts are based on variable readings and analysis of trends and behaviours in the housing markets. Similarly, the 2020 forecasts are based on Yester year’s performances and results.

The reasons can vary due to the size of the huge country i.e. Canada, however, making useful analysis of the trends is a vital element while making investments in the property sector. The investment strategies by most investors have been to diversify their investments. Their goal is also to minimize the risk of investment, which includes property risk as well.

1. 1. WHAT ARE THE ‘HOUSING MARKET’ TRENDS?

The housing market trends are related to the rise and fall in the real estate and property markets. ‘Trends’ means behaviours in a specified time and according to variable demographic conditions and other key variables.  These ‘Trends’ matter mostly in big countries where land is easily available. However, the prices of properties can vary according to the climatic conditions. Additionally, according to the provinces, and according to the real estate behaviours in the last few years.

As Canada is a huge country with a low population density. However,  these stats vary according to the Canadian provinces and the intense climatic hazards. In the ‘Housing market’ trends, ‘country-risk’ is one of the foremost risks. Obviously, these risks depend largely according to the political conditions of the country. Other conditions that relate to ‘country-risk’ are terrorist activities or attacks, war conditions, political instability due to for e.g. Elections, climatic hazards in the form of an earthquake, storms or intense cold conditions.

These housing market fluctuations usually depends & takes place in countries with larger areas and variance in climatic conditions due to the size of the country. Hence, the forecasts usually depend on these fluctuations and country-risk.

Read the related article: CANADIAN IMMIGRATION: AN OVERVIEW OF THE LATEST POLICIES

1. 1. THE ROLE OF ‘INFLATION’ IN THE REAL ESTATE

Inflation in real estate means the prices of property today shall be different from that 10 years later. ‘AROI’ or Annual rate of Inflation for e.g. 10% means that your dollar can buy 90% of the same good the following year, and this also includes property. As an example, we can have a look at this case scenario a bit closer. A piece of underdeveloped land in the year 1970 worth $100,000. However, due to inflation and appreciation, it will be worth many times more than what it was worth in 1970. Therefore, the value of the property will automatically rise with time in most cases. Hence, this variance is according to the ‘appreciation value’ for the land.

1. 1. CANADIAN HOME SALES WILL BE ON A HIGH FOR THE NEXT TWO YEARS

According to the CMHC’s sales forecasts figures that are in most cases accurate. The Canadian home sales have fluctuated since last 4 years i.e. 2016, 2017, 2018 and 2019.  It was at a peak in 2016 then came down in 2017. However, kept falling in 2018 and stayed the same in 2019. For the home sales figures in Canada for 2020 and 2021, there are huge value forecasts. The sales figures will be on an increase especially in the provinces of Ontario and British Columbia. This is mainly because of strong demographic-driven demand for the housing sector.

1. 1. REASONS FOR STABILITY IN NEW HOME CONSTRUCTION IN CANADIAN HOUSING MARKETS

There will be stability in 2020 in the new home construction in Canada. This is primarily due to the demographic demands increasing in most provinces. In 2017 it was on its high according to the stats. This primarily means most constructions of new homes in Canada happened in 2017. However, this trend than declined very sharply and the figures got low in terms of the construction of homes. What’s expected in 2020 and 2021 will be the same as of 2019 figures for home construction. These stats are in line with the historical average for annual home construction.

There are many reasons why the stability in construction matters, the main reason is economic stability and overall property prices. The economic outlook for Canada has stayed positive over the years. This is mainly because builders feel good about picking up the pace in home construction.

One of the key factors of stability in home construction includes a stable labour market and labour laws. Canada is a country that gives labour rights to its construction workers and labours. These rights also include insurance that covers life insurance and injury at work insurance.

1. 1. THE IMPORTANCE OF LABOR LAWS IN CANADA

Labour and construction laws in Canada holds huge importance. Hence, they are a big reason for its economic stability, automatically affecting the stability factors. Designed especially for the sustainability of Canadian citizens. For the sake of the citizens of Canada and their well-being. The labour laws are specially designed to protect the rights of labour and construction workers. There is huge infrastructure in Canada especially in cities like Toronto, Vancouver, Calgary, Ottawa, and Montreal. These are some of the biggest cities in Canada with huge investments in property, which includes both private and commercial.

Hence, signifying the importance that the Canadian Govt. gives to its labour, especially in the housing markets.

1. AFTER DECLINES OF 2019, A RISE IN HOME PRICES

Similar to the sales there have been huge fluctuations in the home prices since the last 2 years. Unlike the home sales of the organization, CMHC believes affirmatively. They think that prices will be the strength in the provinces of Ontario and Quebec. They also think analytically that will lead to growth in the year 2020.

However, by 2021, Quebec will be down in third place. The British Columbia markets will be in the big leagues. Hence, according to forecasts, there will be little gains expected in other regions. However, the three provinces will be the centre of attraction for CMHC.

The rise is due to the increase in demands for homes and new construction. For the future in Canadian Real Estate, this has been identified as a good sign.

Read the related article: WHAT KIND OF HOMEOWNER ARE YOU? : A MODERN LIVING STYLE

The competition for high-quality employees is greater than ever for all retail channels, including convenience stores.

In a recent whitepaper, “Winning the Talent Wars,” Bruce Tulgan of RainMaker Thinking, a consulting firm in Whitneyville, Conn., maps out eight dream job factors that today’s employees are looking for when considering employment.

“The No. 1 issue troubling business leaders today is the increasing difficulty in recruiting, motivating and retaining the best talent,” said Tulgan. “There is a talent shortage at every level, in every industry. The talent wars are back on and more heated than ever.”

The first dream job factor is performance-based compensation. In addition to offering baseline pay and benefits that are comparable to competitors, a c-store chain can stand out by providing opportunities for employees to earn more based on them going the “extra mile,” Tulgan told Convenience Store News.

The second factor is supportive leadership, where people feel their manager or supervisor provides regular support, guidance and direction. Hands-off management is no longer the way top employees expect to be supervised, Tulgan explained.

Next, it’s important to lay out the role and responsibilities, and present a path to advance within the organization. Rather than viewing some tasks as “grunt work,” a company should look at all work as “knowledge work” if you do it right, and pass this viewpoint on to the employee.

Dream job factor No. 4 is location and workspace, which means allowing people to work at a location near their residence, and also providing a comfortable workspace. Today’s employees are looking to have some control over that space, as well.

Factor No. 5 is schedule flexibility. Being able to have input into their schedules is a plus.

“If someone goes the extra mile, maybe they can earn more scheduling flexibility or, after six months of working there, they can have more input,” Tulgan suggested.

The sixth factor important to today’s workers is access to training and development. Showing potential employees the opportunities for career advancement and having a clear path for them to achieve next steps should be a priority for any organization.

The final two factors include relationships at work and creative freedom.

“People care about their relationships at work, so you have to create an environment where relationships revolve around work and a shared mission,” Tulgan pointed out. “Hands-off managers often allow cliques or bullies to form, which is not what you want.”

Providing clear boundaries and guidelines will also allow an employee to know where they can have some autonomy or creativity without going overboard. This is something else that can be earned based on performance, said Tulgan.