With the uncertainty of the pandemic still looming in our day-to-day lives, it can be difficult to see what lays over the horizon. Still, experts have assessed the 2020 markets to come up with some predictions for 2021. Here are four predictions for the real estate market this spring.
1. Move Over
Last year saw the trend of people moving away from densely populated areas in favour of larger homes with more green space. As people continue to work from home, this trend will likely continue into 2021. According to PricewaterhouseCoopers and Urban Land Institute’s Emerging Trends in Real Estate, “Many people will still seek urban environments that combine live/work/play elements, even if they are not living in major city cores.” Homes in the Bow Valley, with their connection to vast natural spaces and their closeness to city amenities, will continue to be in high demand.
2. Move Up
According to RE/MAX Canada, 45% of brokers are seeing “move-up buyers” driving the early 2021 market. These buyers are looking for bigger spaces that can integrate living, working and recreation, all on one property. Closeness to green spaces and access to the outdoors are still major selling features this spring. The Emerging Trends in Real Estate report states, “Besides better options to work from home, there is a growing desire for more space across the board, whether to get outdoors or have more distance from other people.”
3. Get Technical
The use of technology to assist the buying and selling process is expected to continue to grow in 2021. Technology that reduces in-person contact will continue to be adopted as uncertainty around the pandemic continues and future health restrictions may or may not come into play. Technological advancements for buying and selling, such virtual tours, electronic signatures for legal documents and digital transfer of funds, are expected to continue growing into 2021, changing the overall real estate experience.
4. Stay Low
Continuing from the unpredictable market of last year and facing more economic uncertainty ahead, mortgages are expected to remain low throughout 2021. The Bank of Canada has said it will keep interest rates low until the economy recovers and the labour market tightens. This means mortgage rates will continue to stay low with only minor fluctuations expected throughout the year. While the experts are still calling this a seller’s market for the immediate future, it could be the right time to buy for many people.