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Meanwhile selling prices for homes in Toronto will continue to rise in 2021, according to the Canadian Real Estate Association
Recent Toronto real estate forecasts predict rental prices will keep sliding until mid-2021, before recovering in 2022. Meanwhile, sale prices for homes are expected to continue rising.
According to the GTA December rent report by listings site TorontoRentals.com, the price of rent will drop approximately $100 per month by mid-2021 from November’s average: $2,060.
The impending vacancy tax in Toronto should help expedite that slide, compelling landlords to reduce their rates, fill empty properties and mitigate the housing crisis.
However, rental prices will slowly rally in late 2021, before sharply rising 13 or 14 per cent in 2022 to approximately $2,325, which is still 2019’s peak average of $2,454 per month, the report states.
November’s $2,060 average rent in Toronto was down 3.1 per cent monthly and 16.4 per cent, year-over-year, TorontoRentals.com noted. Average rents for one and two-bedroom properties are down approximately 15 per cent annually at $1,827 and $2,288, respectively.
Tenants can save between $300 and $400 on monthly rent from this time last year, but the forecast suggests they will save even more come next summer.
Unsurprisingly, condo rents took the biggest dip on the Toronto real estate scene, with average prices in November shrinking 17.7 per cent from $2.560 to $2,110, year-over-year. That’s $450 in monthly savings for new renters.
As rents decline, the Canadian Real Estate Association (CREA) projects that sale prices in Ontario will continue to soar in 2021.
The CREA’s resale housing market forecast projects that average home prices in Ontario home prices will go up by 16.3 per cent by the end of 2021.
The average home price in Ontario is projected to end 2020 at $708,377, which is up 17.1 per cent. The CREA expects low supply and continued demand to further fuel the average price to $823,656 in 2021. But the supply shortage is also expected to limit transactions in the province. That’s should not be the case for the rest of Canada.
The CREA projects that national sales in 2020 will reach a record 544,413 units, an 11.1 per cent increase from 2019.
The industry group expects that figure to rise 7.2 per cent to 584,000 in 2021. The national average price for a home is projected to finish 2020 at $568,000, a 13.1 per cent annual increase. The CREA expects that figure to rise another 9.1 per cent in 2021 to $620,404.