Housing market insights from Chris Markovic, Division President, PMA Urban

On the cusp of the pandemic’s second wave in Ontario, we recently asked five industry game changers to share their insights and predictions for the year ahead with regards to the pre-construction real estate industry. Here’s what they had to say...

COVID-19 has certainly transformed many facets of our life, and the housing market is no exception. There have been a lot of projections and predictions on where the new home market is headed in this new context of the realities of the pandemic and life in a post-pandemic world.

New heights

In the early days of the shutdown, many in the industry predicted an abrupt correction of the market – in sales volume and pricing. Looking back, we see that the complete opposite has, in fact, occurred – we are now seeing sales activity and pricing reach new highs. There have been many surprises and re-forecasts, but what comes next and what does the new normal look like? Housing supply is very tight. Interest rates are at historical lows. Since the reopening of the economy, the rebound we have seen in the housing market has consistently beaten predictions. We saw a more than 200-per-cent increase in new home sales from last year (August 2020 data, Altus/BILD) along with sizable price gains. So, what are some interesting takeaways from our experience?

Short-lived reaction

A time for reflection: We have all been contemplating and re-examining life choices: Work, relationships and housing, in particular. The realities of life during a pandemic highlight some of the limitations of small suite lifestyle, the potential challenges of living in a highrise, access to greenspace, and the flexibility of truly working remotely – not having to commute on a daily basis. As such, we have seen a shift and motivation to move to less urban density and more ground-oriented housing. Does this mean the end of the skyscraper condo in the downtown core? Most likely not – years of intensification, urban planning and placemaking will not vanish and the desire to live in the heart of major cities will not diminish – this is very likely a short-lived reaction to the current state.