How you know when the real estate market is super-hot… A number of agents called us in the past week asking if we have any listings coming out in a few prime areas. One agent even said – tell your clients to name their price. When agents start calling it means they have super motivated clients and there is very little product available. That means that any house that is priced reasonably will probably attract multiple offers and one party is bound to bid high. That’s when prices start going up. It’s not to say that houses can be listed for unreasonable prices but If the number is substantially too high, it won’t sell. A number of homes that were listed last year and didn’t sell have sold early this year. Buyers are jumping high, but sellers don’t get too greedy.

Some housing predictions for 2021. CIBC issued their weekly market update with some very interesting observations and predictions. The pandemic has resulted in job loss in the lower end of the job sector including services which is a major factor. The higher end job sector has for the most part not been impacted, people spent less hence they saved money plus interest rates are very low. They need and want more space and have created demand in the higher end market. On the other hand, the demand for less expensive houses is less due to economy. Hence in Toronto, the more expensive houses have escalated faster than the less expensive ones. So if you are a mover upper the house that you are buying is rising faster than your house. This will impact the trajectory for the market this year. Vancouver on the other hand which is heavily influenced by foreign investment in the more expensive houses has the reverse effect. This is shown in the graphs below.

In general the prediction is that real estate will be strong this year, particularly spring and moving forward. We are bracing for a busy year.

CIBC WEEKLY MARKET UPDATE & 2021 FORECAST – LIGHT AT THE END OF THE COVID TUNNEL Benjamin Tal Deputy Chief Economist, CIBC Capital Markets

Happy new year to all! I think this year many of us have reflected on the silver linings that the pandemic has given us. We are grateful for what we have. Sometimes it’s all about the little things. This winter our cauldron and pizza oven gave us much joy. I never knew that pizza in front of a fire in the winter could be so much fun.

I would also like to take this opportunity to thank all my clients and friends who have supported us through the pandemic. Our team has had a record year and I am grateful for that.

Here is to 2021 – may we transfer all that we have learned for a better year.

Holidays are approaching and we will have to deal with a different holiday where families can’t always be together. Kids will be off school, what will they do and mothers are trying to figure out how their kids will survive the holidays in a safe way. We all need people – community is important now more than ever. “The Garage” has become an important piece of real estate. Garages all over are being converted to gyms and places to have small gatherings -a friend termed it the “Garbar”. Outdoor activities will be the only way to see people and maintain social contact. Let’s hope we all get through the holidays and manage to keep some holiday spirit.